Test 2- Comp. Mgnt
job control unionism
refers to a union's success in negotiating formal contracts with employees and establishing quasi judicial grievance procedures to adjudicate disputes between union members and employers
human capital
refers to employees' knowledge and skills, enabling them to be productive
just meaningful pay increase
refers to the minimum pay increase that employees will see as making a substantial change in compensation
similar to me effect
refers to the tendency on the part of the raters to judge employees favorably that they perceive as similar to themselves
merit pay programs
reward employees with permanent increases to base pay according to differences in job performance.
Discretionary benefits are generally divided into which three categories?
services, paid time-off, protection programs
human capital theory
states that employees' knowledge and skills generate productive capital known as human capital; employees can develop knowledge and skills from formal education or on the job experience
competitive strategies
strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage
seniority pay
systems reward employees with permanent additions to base pay periodically, according to employees' lelngth of service performing their jobs.
longevity pay
systems reward with permanent additions to base pay those employees who have reached pay grade maximums and who are not likely to move into higher pay grades
What is the most common type of life insurance policy offered by companies?
term life insurance
Base pay
the basic cash compensation that an employer pays for the work performed. Tends to reflect the value of the work itself and ignore differences in individual contributions
threshold of money
the limit to which you absolutely need to get paid to take a job (everyone is different)
Compliance
Conforming to federal and state compensation laws and regulations
Analyzer Corporate Strategy
Focuses on exploiting new opportunities at a relatively early stage while maintaining a base of traditional products or services
Prospector Corporate Strategy
Focuses on identifying and exploiting new opportunities quickly
This term refers to the degree to which the job enables the employee to work on it from start to finish.
Task identity
As of March 2009, how much did U.S. companies spend per employee on average to provide legally required benefits?
$4,400
Benchmark Jobs in Job Classification NQ Job Evaluations
-Contents are well know, relatively stable, and agreed to by the ER. -Represent the entire range of jobs to be evaluated. -A sizable portion of the workforce is employed in these jobs, and the jobs are common across a number of different employers. - External pay rates for the jobs are an acceptable basis for setting wages.
Advantages of Market Based Evaluations
...
Disadvantages of Market Based Evaluations
...
factors of performance plan
1. base line, 2. measurement, 3. control, 4. incentive intensity, 5. cutoff, 6. Distribution format, 7. time, 8. understanding, 9. Risk
To be fully insured under OASDI, Simone would have to work at least how long?
10 years
This performance appraisal system relies on many appropriate sources of information and works well for team-based work teams.
360-degree performance appraisal
In 2007, about how many non-fatal injuries and illnesses, in private workplaces, were reported?
4 million
Correlation Coefficient
A common measure of association and indicates how changes in one variable are related to changes in another
Low-Cost Corporate Strategy
A corporate strategy that depends on providing low-cost products or services to a broad range of customers
Focused Low-Cost Corporate Strategy
A corporate strategy that depends on providing low-cost products or services to a narrow range of customers
Differentiator Corporate Strategy
A corporate strategy that depends on providing unique products or services to a broad range of customers
Focused Differentiator Corporate Strategy
A corporate strategy that depends on providing unique products or services to a narrow range of customers
Coordination and Departmentation
A dimension of organization structure that describes the methods used to coordinate the work of individual employees and subunits in an organization
Decision-Making and Leadership Structure
A dimension of organization structure that describes the nature of the decision-making and leadership processes used in an organization
Communication and Information Structure
A dimension of organization structure that describes the nature of the processes for communication in an organization
Control Structure
A dimension of organization structure that describes the nature of the processes used to control employee behaviour in an organization
Job Design
A dimension or organization structure that describes the manner in which the total task of an organization is divided into separate jobs
Reliability
A measure of the consistency of results among various analysts, various methods, various sources of data, or over time.
Classification Method of Job Evaluation
A series of classes covers the range of jobs.
Cost of Living
Adjustments in pay given to everyone, regardless of performance. This is done to help balance work and life
Classical Managerial Strategy
An approach to management that assumes most employees inherently dislike work but can be induced to work in order to satisfy their economic needs
Human Relations Managerial Strategy
An approach to management that assumes most employees inherently dislike work but can be induced to work in order to satisfy their social needs
High-Involvement Managerial Strategy
An approach to management that assumes that work can be intrinsically motivating if the organization is structured properly
Contingency Approach to Organizational Design
An approach to organization design based on the premise that the best type of structure for an organization depends on the key contingencies (contextual variables) associated with that organization
Ability
An employees skill level
Corporate Strategy
An organization's plan for how it will achieve its goals
Compensable Factors
Are based on the strategic direction of the business and how the work contributes to these objectives and strategy
According to the job characteristics theory, this core characteristic refers to the amount of freedom, independence, and discretion the employee enjoys in determining how to do the job.
Autonomy
Which type of individual incentive plan focuses on accomplishments such as improving attendance or safety records?
Behavior encouragement plans
Among the various performance appraisal techniques, this appraisal system is the most defensible in court because it is based on actual observable job performance behaviors
Behaviorally-anchored rating scales
Which of the following is a reason many European and Japanese employees are better skilled and able to work more productively than American workers?
Both European and Japanese economies provide a higher quality of academic preparation and workplace learning for the non-college portions of their work forces.
Job Family
Broadly similar jobs
Hay Job Evaluation System
Claims that job evaluation establishes the relative value of jobs based on their content, independent of a link to the market.
Pay-for-knowledge and skill-based pay are two types of person-focused pay programs that fall under this pay category.
Competency-based
Long-Linked Technology
Divides the total task of producing a product or service into a series of small sequential steps performed by differential employees
Qualitative Job Analysis (QJA)
Employees are directed to a website where they complete a questionnaire.Such an approach allows statistical analysis of the results.
This term refers to the level of specialization or expertise an employee possesses in a particular job.
Depth of skills
Domain
Describes the specific products or services offered by a given organization
Sorting Effect
Different types of pay strategies may cause different types of people to apply to and stay with an organization
Exempt Status
Employees who are are exempt from regulations of the Fair Labor Standards Act (FLSA) and hence do not receive overtime pay. Salaried workers fall under this category.
This type of appraisal error takes place when managers rate employee's performance more highly than they should compared with objective criteria.
Errors of leniency
Market Based Evaluations
Evaluating jobs on the basis of their market values can develop a job worth hierarchy. Prevailing rates are used as the relative worth of the jobs. Once a hierarchy is developed around benchmarek market rates, the remainder of the jobs are typically placed into the hierarchy based on whole job comparisons to benchmark jobs. Decide the point of reference for comparison. Compare duties, scope and reporting relationships NOT TITLES.
Factor Comparison in Quantitative job evaluation
Factor Comparison (job to job comparison) more complex than ranking or classification and is rarely used. identifies dollar values for each level. Best used with stable wages and a flat rate for each job. Sometimes used as part of a labor contract.
Contextual Variables
Factors in the firm's context that indicate the most appropriate managerial strategy and organizational structure
Craft Technology
Few exceptions are inherent in the production process, but there is no standardized way to deal with them when they do occur
Routine Technology
Few exceptions occur during the production process, and those exceptions that do occur can be dealt with in a standardized way
Defender Corporate Strategy
Focuses on dominating a narrow product or service marker segment
This group incentive system was designed to provide employees with financial incentives for increasing customer satisfaction, increasing productivity, lowering costs, or improving safety.
Gain sharing
Management by objective is part of which type of performance appraisal system?
Goal-Oriented system
Customer satisfaction, labor cost savings, materials cost savings, and reduction in accidents were listed as typical performance measures to which type of incentive plan?
Group
Position Analysis Questionnaire (PAQ)
Groups information into seven basic factors: information input mental processes, work output, relationships with other persons, job context, other job characteristics, and general dimensions
Pay Objectives
Guide the design of the pay system.
Identifying Compensable Factors
Hay Plan, of Guide Chart Profile method - know-how, problem solving, and accountability. Factor Evaluation System - knowledge required, supervisory controls, guidelines, complexity, scope and effect, personal contracts, purpose, of contacts, purpose of contacts, physical demands, and the work environment.
Which of the following is a characteristic of integrated paid time off policies?
Holiday, vacation, sick leave, and personal leave are combined
Variable Pay
Incentives. Tied to the performance of an individual employee, a team of employees, a total business unit, or some combination
Total Compensation
Includes pay received as cash and indirectly as benefits (e.g. pensions, medical insurance, uniforms)
Motivation
Intensity, direction, and persistence of an employee.
Validity
Is the analysis and accurate portrait of the work?
NQ Job Evaluations: Ranking and Classification
Job Classification (Job to predetermined standard comparison) grouping jobs into grads, each having a class description to use for job comparisons. = General Schedule system by federal government. Classes may be described further by naming BENCHMARK JOBS. Good to use in grouping a large number of jobs. Difficult to use with groups having overlapping jobs.
NQ Job Evaluations: Ranking and Classification
Job Ranking (job to job comparison) a hierarchy of jobs from lowest to highest of importance. Whole job, comparing one job to another.
Nonquantitative Job Evaluation
Job Ranking (job to job comparison) a hierarchy of jobs from lowest to highest of importance. Whole job, comparing one job to another. Job Classification (Job to predetermined standard comparison) grouping jobs into grads, each having a class description to use for job comparisons. = General Schedule system by fed.gov. Ofter referred to as whole-job methods, as they evaluated the entire job and place different jobs in order w/o a number value being assigned to each job. As a result, one can tell that Job A is more important than Job B but not how much more important.
Skill variety, task identity, autonomy, and feedback are the elements that make up this theory.
Job characteristics
This term reflects an approach to job design that results in the development of more intrinsically motivating and interesting work.
Job enrichment
Supply Chain Analysis
Looks at how an organization does its work: activities pursued to accomplish specific objectives for specific consumers.
Which performance appraisal tool is most often used with managers and professional employees?
Management by objectives
Which type of individual incentive plan requires the achievement of multiple, complex objectives without compromising the quality and quantity of output that is generated by employees?
Management incentive plans
Nonroutine Technology
Many exceptions are inherent in the production process, and there is no standardized way to deal with these exceptions
Engineering Technology
Many exceptions occur in the production of service or delivery process, but there are standardized ways of dealing with them
This Medicare Plan was established with the passage of the Balanced Budget Act of 1997 as an alternative to the original program (parts A&B).
Medicare Advantage
Team Incentives
Offers higher pay if the team performance warrants it
Managerial Strategy
One of three main patterns or combinations of structural variables that can be adopted by an organization, namely classical, human relations, or high involvement
Alternation Ranking
Orders job descriptions alternately at each extreme
Which evaluation system requires that supervisors compare each employee to every other employee, identifying the better performer in each pair?
Paired comparison
Objectives
Part of compensation policies and objectives. (e.g. efficiency, fairness, and compliance)
Which type of individual incentive plan rewards employees based on their individual hourly production against an output standard?
Piecework plans
Quantitative job evaluation Point Factor method and Factor Comparison method
Point Factor - involves using specific Compensable factors to evaluate relative job worth. Compensable factors reflect the dimensions along which jobs are perceived to add value to the org.
Technology
Procedures and resources used by an organization to transform inputs into outputs
Relational Returns
Psychological benefits. (e.g. learning opportunities, status, challenging work, and so on)
Quantitative Job Evaluation
Quantitative methods try to establish how much more one job is worth compared to another job by using a scaling system. Evaluates specific factors, use a scale and proved a score that indicates how valuable one job is compared to another. Point-factor method (Job to predetermined standard comparison.) Factor Comparison (job to job comparison) more complex than ranking or classificion and is rarely used. identifiies dollar values for each level.
This type of individual incentive plan rewards employees who recruit new customers or new employees.
Referral
Compensation
Refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship
External Competitiveness
Refers to pay comparisons with competitors
Content
Refers to what work is performed and how gets done
Intensive Technology
Requires that each item or case be dealt with individually, depending on the specific nature of each
Americans with Disabilities Act (ADA)
Requires that essential elements of a job must be specified for jobs covered by the legislation
Task Data
Reveals the actual work performed and its purpose or outcome
Incentive Plans
Reward people for developing "innovative" new financial investment vehicles and for taking risks to earn themselves and their firms a lot money.
Which gain sharing plan focuses on lowering the percentage of labor costs using a value-added formula?
Rucker Plan
Teams that have members learn scheduling, coordinating, training, and leading others are emphasized in what type of work team?
Self-regulating work groups
Compensable factors in Equal Pay Act and Title VII of the Civil Rights Act include
Skill - Responsibility - Effort - Working conditions - Supervision of Others Compensable factors should: -Reflect actual work being done -Be supported by documentation such as job descriptions -Reinforce the Org's strategic plan and culture -Be valued by all affected parties (stakeholders) -Be reviewed annually Once analysis complete for all compensable factors, the result gives the complete range of points related to the factors. The fewest points a job can be worth is determined by adding the points. The most points a job can be worth is 1100 determined by adding the max # of points for each factor.
This term refers to the degree to which the job requires the person to do different tasks that involves the use of a number of different skills, abilities and talents.
Skill variety
Organizations
Systems that apply to procedures to a set of resources to transform inputs into valued outputs
affordable care act
The Affordable Care Act (ACA) was passed in 2010, Title 1 eliminates lifetime limits on covered insurance benefits, and it is phasing out the annual limits that companies can impose on coverage. The ACA also improves access to health insurance for children, young adults, and people with a pre-existing condition.
Conventional Job Analysis
The U.S. Government's step-by-step approach to job analysis.
Incentive Effect
The degree to which pay influences individual and aggregate motivation among employees.
Organization Structure
The means through which an organization generates the behaviours necessary to execute its corporate strategy
Task Environment
The portion of the general environment that has direct relevance to a given organization
Job Evaluation
The process of systematically determining the relative worth of jobs to create a job structure for the organization. The evaluation is based on a combination of job content, skills required, value to the organization.
Organizational Culture
The set of core values and understandings shared by members of an organization
Job Analysis
The systematic process of collecting information that identifies similarities and differences in the work
Essential Elements
Those that cannot be reassigned to other workers
This is considered "at the heart" of person-focused pay programs.
Training
If an employee is rated as outstanding on her leadership ability she was probably rated using which appraisal system?
Trait system
Paired Comparison
Uses a matrix to compare all possible pairs of jobs
Mediating Technology
Uses standardized transactions to connect parties wishing a mutually beneficial relationship
Employees would need to learn these types of skills in order to develop self-managed work teams
Vertical
Total Cash Compensation
Wages + Bonuses
Salary
Working for a fixed amount of annual or monthly pay regardless of hours worked.
Wages
Working for hourly wages rather than fixed (e.g. annual) salaries
Benchmark (key) Jobs
Would be identified for as many of the levels in the structure and groups of related jobs as possible
Job Description
Written Summary of the job. It contains info. on the tasks, people, and things included
Commission
a fee for services rendered based on a percentage of an amount received or collected or agreed to be paid (as distinguished from a salary)
across-the-board increase
a general adjustment that provides equal increases to all employees
success-sharing plans
a generic category of pay add-on which is tied to some measure of group performance, not individual performance
management by objectives
a goal oriented performance appraisal method, requires that supervisors and employees determine objectives for employees to meet during the rating period, and then employees appraise how well they have achieved their objectives.
behavioral observation scale
a specific kind of behavioral system, displays illustrations of positive incidents (or behaviors) of job performance for various job dimensions; the evaluator rates the employee on each behavior according to the extent to which the employee performs in a manner consistent with each behavioral description
behaviorally anchored rating scales
a specific kind of behavioral system, is based on the critical incident technique and these scales are developed in the same fashion with one exception; for the CIT, a critical incident would be written as, "the incumbent completed the task in a timely fashion." For the BARS format, this incident would be written as, "the incumbent is expected to complete the task in a timely fashion."
critical incident technique
a specific kind of behavioral system, requires job incumbents and their supervisors to identify performance incidents - on the job behaviors and behavioral outcomes - that distinguish successful performance from unsuccessful performance; the supervisor then observes the employees and records their performance on these critical job aspects.
forced distribution
a specific kind of comparison performance appraisal system in which raters (ex: supervisors) assign employees to groups that represent the entire range of performance.
brito v zia company
a supreme court ruling, deemed that the zia company violated Title VII of the civil rights act of 1964 when a disproportionate number of protected class individuals were laid off on the basis of low performance appraisal scores; zia company's action was a violation of title vii because the use of the performance appraisal system in determining layoffs was indeed an employment test; in addition, the court rule that the zia co had not demonstrated that its performance appraisal instrument was valid
comparison systems
a type of performance appraisal method, require that raters (ex: supervisors) evaluate a given employee's performance against other employees' performance attainments; employees are ranked from the best performer to the poorest performer
trait systems
a type of performance appraisal method, requires raters (ex: supervisors or customers) to evaluate each employee's traits or characteristics (ex: quality of work, quantity of work, appearance, dependability, cooperation, initiative, judgment, leadership responsibility, decision making ability, and creativity).
behavioral systems
a type of performance appraisal method, requires that raters (ex: supervisors) judge the extent to which employees display successful job performance behaviors.
paired comparisons
a variation of simple ranking job evaluation plans, orders all jobs from lowest to highest based on comparing the worth of each job in all possible job pairs; also refers to a specific kind of comparison method for appraising job performance; supervisors compare each employee to every other employee, identifying the better performer in each pair.
Which of the following is a strategic purpose fulfilled by discretionary benefits?
accommodating a diverse workforce
What specifies the rate at which participants accumulate benefits?
accrual rules
cost-of-living
actual individual expenditures on goods and services. The only way to measure it accurately is to examine the expense budget of each employee
profit sharing
add-on linked to group performance (team, division, total company) relative to exceeding some financial goal
expectancy theory
argues that people behave as if they cognitively evaluate what behaviors are possible in relation to the value of rewards offered in exchange
lump-sum bonus
as with merit pay, granted for individual performance. does not add into base pay, but is distributed as a one-time bonus
flexible compensation
based on the idea that only the individual employee knows what package of rewards would best suit personal needs
These types of insurance plans are set up to cover things like dental care, vision care, and prescription drugs.
carve-out plans
Which of these is NOT covered under workers' compensation?
chronic unemployment
general schedule
classified federal government jobs into 15 classifications (GS-1 through GS-15) based on such factors as skill, education, and experience levels; in addition, jobs that require high levels of specialized education (ex: a physicist), significantly influence public policy (ex: law judges), or require executive decision making are classified in 3 additional categories: senior level, scientific & professional positions, and the senior executive service
internally consistent compensation systems
clearly define the relative value of each job among all jobs within a company; this ordered set of jobs represents the job structure or hierarchy; companies rely on a simple, yet fundamental, principle for building internally consistent compensation systems: jobs that require greater qualifications, more responsibilities, and more complex duties should be paid more highly than jobs that require lesser qualifications, fewer responsibilities, and less complex job duties.
This term refers to the percentage of the health bill the insured employee is required to pay.
coinsurance
This type of flexible work schedule allows employees to work four 10-hour days a week.
compressed work week
What type of pension plan commonly includes profit-sharing plans, stock bonus plans, and employee stock ownership plans?
defined contribution
core compensation
describes the monetary rewards employees receive. thereare six types: base pay, seniority, merit, incentive, cost-of-living adjustments and pay-for-knowledge and skill-based pay
designing a pay for performance plan
efficiency, equity/fairness, compliance
Concept for paying for performance
efficient, fair, legal/ethical
Your company asked you to come up with a contribution plan that invests the contributions in company securities and distributes the payouts in stock instead of cash. Which plan would you suggest they use?
employee stock option plan (ESOP)
extrinsic needs
external- outside of u
These types of insurance plans provide protection against health care expenses in the form of cash benefits paid to the insured, or directly to the provider after the services are rendered.
fee-for-service plans
This consumer-driven health care option allows employees to contribute pre-tax wages annually to pay for qualified medical expenses, but they will lose the balance not used at year's end.
flexible spending accounts
risk sharing plans
generic category of pay add-on (variable pay) that differs from success sharing in the employee not only shares in the successes but also is penalized during poor performance years. penalty is in form of lower total compensation in poor corporate performance years. reward, through, is typically higher than that for success-sharing programs in high performance years
bias errors
happen in the performance evaluation process when the rater evaluates the employee based on the rater's negative or positive opinion of the employee rather than on the employee's actual performance.
This type of consumer driven health care program allows employees to carry-over the unused funds still in their account.
health savings account
Which of the following is covered by Medicare Part A?
home health care
rating errors
in performance appraisals reflect differences between human judgment processes versus objective, accurate assessments uncolored by bias, prejudice, or other subjective, extraneous influences.
360 degree performance appraisal methods
incorporate several sources of pertinent information to give a more complete (and presumably) less biased assessment of job performance; examples of pertinent sources include supervisor, coworkers, and clients.
What are the two types of fee-for-service plans?
indemnity plans, self-funded plans
This policy allows employees to schedule time-off without having to justify the reasons, and is more effective in controlling absenteeism than other types of absence control policies.
integrated paid time off
intrinsic needs
internal- inside of u intangible
The fit of seniority pay practices with the two competitive strategies
lowest cost and differentiation
individual incentive
measures of performance are objective
contrast errors
occur when a rater compares an employee to other employees rather than to specific explicit performance standards.
leniency error
occur when raters appraise an employer's performance more highly than it really rates, compared with objective criteria
errors of central tendency
occur when raters judge all employees as average or close to average
strictness errors
occur when raters judge employee performance to be less than what it is when compared against objective criteria
positive halo effect
occurs when a rater (ex: supervisor) generalizes employees' positive behavior on one aspect of the job to all aspects of the job
first impression effect
occurs when a rater (ex: supervisor) makes an initial favorable or unfavorable judgment about an employee and then ignores of distorts the employee's actual performance based on this impression
negative halo effect
occurs when a rater generalizes an employee's negative behavior one one aspect of the job to all aspects of the job
illegal discriminatory bias
occurs when a supervisor rates members of his or her race, gender, nationality, or religion more favorably than members of other classes.
How is Medicare Part A financed?
payroll taxes paid by both employers and employees
Which of the following is a feature of short-term disability plans?
preexisting conditions
The giving of one's time to support a meaningful cause is better known as this.
volunteerism
merit pay
wage increase granted to employee as function of some assessment of employee performance. add on to base pay in subsequent years
How often will Jill receive an unemployment check?
weekly