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