Final HR Exam
Process of determining how well employees do their jobs relative to a standard and communicating that information to them.
Performance appraisal
_______ identifies the work that individuals need to do to be effective and contribute to the mission and objectives of an organization. The process should also encourage, measure, and evaluate job performance so that improvements can be made.
Performance management
The power of labor unions has ______ in the United States and employees increasingly regard themselves as free agents in the workplace, the struggle between individual employee and employer rights has become heightened.
declined
There are ________ numbers of white-collar employees such as clerical workers, insurance claims representatives, data input processors, mental health aides, computer technicians, loan officers, auditors, and retail sales workers. Unions have __________ efforts to organize white-collar workers because advances in technology have boosted their numbers in the workforce. However, unions have faced challenges in organizing these workers.
growing; increased
During development of the formal appraisal system, ________ usually offer input about how the final system should work.
managers
Some employers have shifted to more ____________ philosophies and strategies. Consequently, they have adopted the following means to provide employees with performance-based increases.
pay-for-performance
Better ___________ leads to greater rewards for employees. Performance may be evaluated and rewarded at the individual, group (a team or even a whole plant), or entire organization level.
performance
For employees, _____________ training focuses on the purposes of appraisal, the appraisal process and timing, and how performance criteria and standards are linked to job duties and responsibilities.
performance appraisal
Many of the workforce changes discussed in earlier chapters have contributed to the _________ in union representation of the labor force. The _______ in many blue-collar jobs in heavy industry has been especially significant. For example, the United Mine Workers of America was once one of the nation's most powerful unions with 800,000 members. Today, there are only 35,000 members and of those, only 20,000 work in coal mining.
decrease; decline
The pay differences between women and men seem to be __________ generationally, with Millennials experiencing a greatly __________ pay gap. But the pay differences tend to __________ in executive-level positions. Continued monitoring of organizational pay levels and properly managing women's career progress are ways to address these concerns.
decreasing diminished increase
Incentivizing employee performance efforts at the work unit or team level can certainly lead to cohesive teams that generate high productivity and innovation. However, the success of the organization as a whole rests on the contribution of each employee working toward important goals for the organization. Including an element of incentive pay based on organizational outcomes can ensure that every worker focuses on taking steps to fulfill those goals.
gainsharing
The conditions for refusing work because of safety concerns include the following:
1) the employee's fear is objectively reasonable 2) the employee has tried to have the dangerous condition corrected 3) using normal procedures to solve the problem has not worked
The Three-Legged Stool of Retirement Income: Traditional
1940-1980 1. social security 2. retiree savings 3. employer-funded pension plan/defined benefit
While traditional pension plans that provided a defined amount for retirement at a defined age were the norm for decades; but since the early ___________, fewer companies have provided these plans. Instead, _______ retirement accounts have become standard. Given these realities, retired individuals must often rely on Social Security payments, which were not designed to provide full retirement income.
1980s; employee-funded
Unfortunately, one SHRM survey found that roughly _______ of employers focus on benefits to recruit workers, and only about _______ use them to retain current workers. Evidence also suggests that _________ do not always meet the needs of both employers and workers and therefore do not lead to improved engagement or operational effectiveness.
25%; 20% benefits
_______ can be used to create and maintain a competitive advantage for the organization. While they represent a significant cost, _________ are an important factor in employee commitment and retention. Attracting and retaining employees and increasing productivity are business objectives that can be enhanced through effective design of __________ programs.
Benefits
Courts determine if employers' actions are fair based on how managers address these factors.
Criteria for evaluating just cause and due process
- Designs and maintains appraisal system - Trains raters - Tracks timely receipt of appraisals - Reviews completed appraisals for consistency
HR Unit
A key concept for variable pay: Idea that employees can clearly see how their actions and decisions lead to desired outcomes.
Line of sight
_________ can simply make the employee's ratings positive and avoid unpleasantness. But avoidance helps no one. A manager owes an employee a well-done appraisal, no matter how difficult an employee is or how difficult the conversation about performance might be.
Managers
_________ may feel some resistance about appraisals because they often have negative perceptions about the process. Many feel that their role requires them to assist, encourage, coach, and counsel employees to improve their performance. However, being a judge on one hand and a coach and a counselor on the other may cause some internal conflict. Employees often approach an appraisal interview with some concern. They may feel that discussions about performance are both personal and important to their continued job success. At the same time, they want to know how their managers view their performance.
Managers
_____________ with informed positive views of the performance appraisal system are more likely to use the system effectively. Unfortunately, such training occurs only sporadically or not at all in many organizations. Without training, managers and supervisors often "repeat the past," meaning that they appraise others must as they have been appraised in the past.
Managers
_______ are more likely to take financial risks and choose jobs that pay for performance than are _______.
Men women
This tool is a key part of performance management because it helps employees improve their job performance.
Performance appraisal
________ are widely used for administering wages and salaries and identifying individual employee strengths and weaknesses.
Performance appraisals
_________ are used to assess an employee's performance and create a mechanism for providing feedback about past, current, and future performance expectations.
Performance appraisals
Series of activities designed to ensure that the organization gets the performance it needs from its employees.
Performance management
This approach focuses on providing the top-performing employees with significantly higher pay raises. One way to do this is to target the top employees for significantly greater increases, while providing standard increases to the remaining satisfactory performers. Recent reports indicate that raises given to top performers by their employers are higher than those provided to other employees.
Performance-Based Increases: Targeting high performers
__________ have been criticized for reinforcing traditional organizational structures and job rigidity. Although not perfect, _____________ is generally better than the ranking and classification methods because it quantifies job elements.
Point factor systems the point factor method
Based on standards specified in the Civil Rights Act and the ___________, employers should not prevent women (or men) from working in hazardous jobs because of reproductive concerns.
Pregnancy Discrimination Act
The model has changed over time, with workers now carrying a __________ financial burden to prepare for retirement. Employers emphasize that employees must take on more responsibility to plan and save for retirement.
Three-legged stool: greater
Do people work harder if their pay is tied to their performance?
Yes, they do, but there are several caveats that make the relationship a bit less clear-cut.
Through the ___________ process, good employee performance can be made even better, poor employee performance can be improved, and poor performers can be removed from the organization.
appraisal
Employers may offer ________ to aid recruiting and retention, improve organizational performance, and meet legal requirements. Another SHRM survey found that _____ of companies utilize ________ as an effective way to recruit workers, and many HR professionals believe that providing benefits such as health care, retirement support, flexible work arrangements, employee development, and health/wellness initiatives will play a more prominent role in recruitment in the near future.
benefits 31% benefits
Some employers use _______ to reinforce the company philosophy of social and corporate citizenship. Firms that provide above average ________ are often viewed more positively with a community and the industry by customers, civic leaders, current employees, and individuals working for other firms. Conversely, employers who are seen as skimping on benefits, cutting benefits, or taking advantage of workers may be viewed more ________.
benefits negatively
The practice of employees using their own mobile devices such as smartphones and digital tablets in the workplace.
bring your own device (BYOD)
Another pay-raise practice is the use of a _________________ whereby every employee's pay is increased to compensate for inflation and rising prices. Often, these adjustments are tied to changes in the Consumer Price Index (CPI) or some other general economic measure. However, the CPI may overstate the actual cost of living, and __________ increases do nothing to recognize employees for their relative contributions to the organization.
cost-of-living adjustment (COLA)
Accidents can be costly for organizations because there are direct, indirect, and immeasurable costs associated with occupational safety incidents. The ______ costs of accidents and illnesses are only a small part of the total costs, and organizations should estimate all the expenses associated with health and safety issues, particularly any indirect costs that might be overlooked.
direct indirect and immeasurable costs make up the majority of the total costs
A number of concerns for managers affect compensation planning and administration. Circumstances such as ___________ and the ________ that occur within and outside the organization can create employee dissatisfaction or turnover.
economic recessions and the gender pay gap
The comparisons are personal and are based on individual perceptions, not necessarily facts. Individuals who believe that they are not being rewarded fairly (such as getting lower outcomes than peers for the same inputs) can restore equity in two ways. They can reduce inputs or seek greater outcomes. Reducing inputs is a simple matter of investing less effort in work, refusing to work extra hours, or decreasing loyalty and commitment to the organization. Seeking additional outcomes is more difficult. The individual must request a pay increase or praise and recognition from a supervisor, who may or may not cooperate. Monitoring changes in employee behavior may help uncover perceptions of inequity. Managers should continually monitor equity relationships to identify areas that may harm employee motivation and retention.
equity theory
The ____________ was first introduced by John Stacey Adams in 1963.
equity theory of motivation
There is a wide variety of possible incentives for employees. Many of the rewards are _________, which are rewards that are external to the individual. These rewards include base pay, monetary incentives, bonuses, perquisites, and other measurable rewards. However, some research has shown that ____________, or rewards that are internal to the individual, are more powerful in motivating workers to exercise discretionary effort to achieve their own and the organization's goals. These rewards include meaningful work, autonomy, professional development, and opportunities to use their expertise.
extrinsic rewards intrinsic rewards
Advocates of forced ranking argue that ___________ ensures that compensation increases truly are differentiated by performance rather than being spread equally among all employees.
forced distribution
But the ___________ method suffers from several drawbacks. Perhaps in a truly exceptional group of employees there are not 10% who are unsatisfactory. Another problem is that a supervisor may resist placing any individual in the lowest (or the highest) group. Difficulties also arise when the rater must explain to an employee why he or she was placed in one group while others were placed in higher groups.
forced distribution
If employers do not require a ___________, performance appraisal ratings often do not match the normal distribution of a bell-shaped curve.
forced distribution
In some cases, the manager may make false distinctions between employees. By comparing people against each other, rather than against a standard of job performance, supervisors trying to fill the percentages may end up giving employees very subjective ratings. Finally, forced ranking structures can increase in anxiety in employees, promote conformity, and encourage gaming of the system. Consequently, a number of firms have been involved in lawsuits about forced distribution performance appraisal processes. In fact, one study found that the use of forced distribution rating approaches may result in more frequent adverse impact violations when managing company layoffs.
forced distribution
Performance appraisal method in which ratings of employees' performance levels are distributed along a bell-shaped curve.
forced distribution
The use of a _________ system forces managers to identify high, average, and low performers. Thus, high performers can be rewarded and developed, while low performers can be encouraged to improve or leave.
forced distribution
One reason firms have adopted __________ for appraisal ratings is to deal with "rater inflation."
forced distributions
Without union representation, employees may be paid unfairly and treated poorly. Employees expect to receive reasonably competitive compensation, a good working environment, effective management and supervision, and fair and responsive treatment. When these basic expectations are not met, employees may seek out a ____________.
labor union
Knowing that appraisals may affect employees' future careers may also cause altered or biased ratings. This problem is even more likely when __________ know that they will have to communicate and defend their ratings to the employees, their bosses, and/or HR specialists.
managers
A ________________ is often the link between employee job performance and the additional pay and rewards they can receive.
performance appraisal system
Organizations generally use _________ in two potentially conflicting ways. One use is to provide a measure of performance for consideration in making pay or other administrative decisions about employees. This administrative role often creates stress for the managers doing the appraisals and the employees being evaluated because the rater is placed in the role of judge. The other use focuses on the development of individuals. In this role, the manager acts more as a counselor and coach than as a judge. The developmental performance appraisal emphasizes current training and development needs, as well as planning employees' future opportunities and career directions.
performance appraisals
Most systems can be improved by training supervisors in how to conduct _____________. Since conducting the appraisals is important, training should center around minimizing rater errors and providing raters with details on documenting performance information. __________ is essential for those who have recently been promoted to managerial jobs and for whom conductive performance appraisals is a new experience.
performance appraisals; Training
The ________________ starts by identifying the goals an organization should accomplish to remain competitive and profitable. Managers then identify how they and their employees can support these objectives by successfully completing work. Of course, the sum of the work completed in all jobs should advance the strategic plan.
performance management process
The amount of ___________ is often determined by an employee's level within the organization and years of service with the company. Some employers provide continued health insurance or outplacement assistance as part of the severance package.
severance pay
There are some financial issues that should be considered when offering severance payments. A recent US Supreme Court ruling specified that severance payments are considered taxable income for FICA calculations. Severance pay may also affect the unemployment benefits received by former employees. Much of this is determined by how states treat severance payments, how the company specifies these payments, and the company policies are implemented. HR professionals and managers should consult guidelines when instituting ___________.
severance pay
The overtime can be calculated with a ____________ that involves dividing a person's weekly salary by the total number of hours worked in a week and then providing the individual an additional payout of 1.5 times this rate for the number of hours worked over 40. An alternative method is the fluctuating workweek, which involves only paying one-third of the overtime rate because it is assumed that the base part of overtime pay has already been included in the salary that the individual has earned for that week.
standard method
The use of ________ in organizations has implications for incentive compensation. Although the use of teams has _________ substantially in the past few years, the question of how to equitably compensate members remains a challenge. Studies have shown that while individuals who are incentivized increase their performance by _________, teams that are incentivized increase their performance by ________. There are obviously substantial gains possible if team incentives are appropriately designed and administered.
teams; increased 27%; 45%
Court decisions on the legality of performance appraisals and research on appraisal effectiveness both stress the importance of ____________ managers and employees.
training
A total rewards philosophy emphasizes how a company can use both direct and indirect (or relational) rewards to strengthen employee motivation and commitment. Economic conditions also require employers to make necessary adjustments to total rewards to reflect changing business environments.
true
Companies can utilize benefits to improve operating results.
true
During trying economic times, many organizations address shortfalls in revenue by reducing employment-related expenses. This may include reducing the quantities and amounts of raises given to employees. Layoffs and reductions in force may be other strategies used to lower costs. Managers and HR professionals should consider the potential negative impact of these approaches and use them sparingly because employee job dissatisfaction and turnover can occur if such strategies are implemented on a long-term basis.
true
Employee misconduct such as accounting irregularities, churning customer accounts, giving inappropriate gifts to clients, and using company property for personal purposes can occur when employees try to meet expected pay for performance goals. The benefits to be gained from misconduct may exceed the fear of being caught. Performance-contingent compensation systems may unwittingly reinforce misconduct, especially if there is little base pay and much of the compensation is variable.
true
Employees may well see the appraisal process as a threat and feel that the only way for them to get a higher rating is for someone else to receive a low rating. This win-lose perception is encouraged by the use of comparative rating methods. Emphasis on the self-improvement and developmental characteristics of appraisals may mitigate this reaction.
true
For the programs to be effective, performance measures need to have appropriate emphasis and weights for calculating incentives. If incentive measures are perceived as manipulated or inappropriate, the variable pay system will not be effective. Using multiple measures helps ensure that important performance dimensions are not omitted.
true
On the other hand, employees want to be compensated fairly and have their individual needs met. They can choose to spend more time at work if compensation levels are desirable, or they can engage in more leisure activities when compensation is not attractive. The challenge then is for employers to achieve an optimal relationship between costs and employee impact while considering many financial and operational factors.
true
Assigning employees to work in areas where their ability to have children may be affected by exposure to chemical hazards or radiation is an issue. Women who are able to bear children or are pregnant present the primary concerns, but in some situations, the possibility that men might become sterile is also an issue.
true: work assignments and reproductive health
Once ____________ occurs, the ability of the union to foster commitment from members and to remain as their bargaining agent depends on how well the union succeeds in providing the services that its members want, which can further strengthen or weaken workers' perceptions of unions.
unionization
One of the primary determinants of whether employees want to ____________ is how well their companies are managed. Unions function as a watchdog for workplace equity and make sure that employees are treated fairly.
unionize
If employees believe they are being treated unfairly by their companies, they may turn to ___________ to get assistance with their concerns. The major factors that can trigger ___________ are issues of compensation, working conditions, management style, and employee treatment.
unions; unionization
Under labor laws, workers may challenge __________, whether or not they are members of a labor union. Both union and nonunion workers have refused to work when they considered the work unsafe, and several court cases support their actions.
unsafe work assignments
forced distribution ratings from lowest to highest categories
unsatisfactory (10%) below expectations (20%) meets expectations (40%) above expectations (20%) outstanding (10%)
Not everyone wants to have their pay continent on their performance. There is "self-selection" with incentive plans attracting different people with different characteristics such as gender and willingness to take risks. In fact, some economic studies suggest that some of the variance in male wage rates versus female wage rates can be attributed to this self-selection regarding pay for performance.
variable pay
Some employees prefer cash over non cash incentives, while non-cash incentives can motivate some workers to perform better than cash rewards do. Organizations must make a variety of important compensation decisions to ensure that the ___________ offered will motivate a workforce with diverse needs.
variable pay
The term pay for performance is often used interchangeably with the term ___________ because this type of compensation moves pay from being a fixed cost to one that varies with employee performance.
variable pay
Tying pay to performance can be attractive for both employers and employees. For employers, it can mean more output per employee (productivity), lower fixed costs, and shifting some risk to employees (because they must perform to get paid). For employees, it can mean more pay when they do their jobs well. But not everyone likes variable pay. Some employees don't like the risks associated with performance-based pay. Unions uniformly prefer that employees be paid for the amount of time they spend on the job rather than for the amount they produce.
variable pay
A vital element of establishing a ____________ is determining appropriate performance measures to evaluate performance and the resulting rewards. Most organizations have a number of important targets to track results related to critical success factors.
variable pay plan
Many ________ workers see unions as resistant to change and not in touch with the concerns of the more educated workers in technical and professional jobs. In addition, many white-collar workers exhibit attitudes and preferences quite different from those held by blue-collar union members and they tend to view unions as being oriented primarily toward ________ workers.
white-collar; blue-collar
The growing percentage of _________ in the U.S. workforce presents another challenge to unions. In the past, unions have not been as successful in organizing female workers as they have been in organizing male workers. Some unions are trying to focus more on recruiting ________ members, and unions have been in the forefront in the push for legislation on such family-related practices as child care, maternity and paternity leave, pay equity, and flexible work arrangements. Women in "______," low-skill service jobs have been somewhat more likely to join unions than women working in white-collar jobs.
women; female; pink-collar
The following list is not comprehensive, but it does identify some topics to be covered in appraisal training for managers:
- appraisal process and training - performance criteria and job standards that should be considered - how to communicate positive and negative feedback - when and how to discuss training and development goals - conducting and discussing the compensation review - how to avoid common rating errors
There are several key issues related to designing team variable pay plans. The main concerns are how and when to distribute the incentives and who will determine the incentive amounts. What are the 2 primary ways for distributing those rewards?
1) same size reward for each member (most common approach) 2) different size reward for each member
The philosophical foundation of variable pay rests on 3 basic assumptions:
1) some people or groups contribute more to organizational success than do others 2) some people perform better and are more productive than are others 3) employees or groups who perform better or contribute more should receive greater compensation
It is important for ________ to understand that appraisals are THEIR responsibility.
managers
Benefits tend to be costly for the typical U.S employer, often averaging at least __________ of payroll expenses. In highly unionized manufacturing and utility industries, they may represent well over____________ of payroll costs. Current trends and projections suggest that health care coverage will lead to _____________ in the costs associated with providing benefits to employees.
one-third half increases
Work unit or team reward systems may compensate members in a number of ways. The two most common types of work unit or team incentives are....
team results and gainsharing
Pay adjustments based on seniority are often set as automatic steps depending on satisfactory performance during the required length of time. This is often used early in a person's employment. For example, the company may have automatic step increases at 30, 60, and 90 days to improve retention of new hires and to reward mastery of job skills.
seniority
Linking pay to performance may not always be appropriate in all work situations. For instance, if output cannot be measured objectively, management might not be able to correctly reward higher performers with more pay. Managers might not even be able to accurately identify higher performers. A group or work unit reward might be more preferable in some situations.
true
Most employees who receive pay increases, either for merit or seniority, receive an increase in the amount of their regular monthly or weekly paycheck.
true
Tangible rewards that encourage or motivate action and therefore might be related to pay or even be broader.
Incentives
The Three-Legged Stool of Retirement Income: Modern
Modern 1980 and Beyond 1. social security 2. retiree savings 3. employee-funded retirement plan/defined contribution
A model showing the three sources of income to fund an employee's retirement.
Three-legged stool
Monetary and nonmonetary rewards provided by companies to attract, motivate, and retain employees.
Total rewards
___________ can be determined in several ways, including performance, seniority, cost-of-living adjustments, across-the-board increases, and lump-sum increases. These methods can be used separately or in combination.
Pay increases
_______________ objectives should be linked to the management of individual job performance.
Business
____________ are derived from job analysis and reflect the nature of different types of work performed in the organization.
Compensable factors
- How have precedents been handled? - Was the employee asked for his or her side of the story? - Is a complaint process available? - Was the complaint process used? - Did the company retaliate against the employee? - Was the decision based on facts? - Were the actions and processes viewed as fair by outside entities?
Criteria for evaluating due process: Due Process Considerations
- Was the employer's rule reasonable? - Was the employee warned of the consequences of the conduct? - Did management investigate before disciplining? - Was the investigation fair and impartial? - Was there sufficient evidence of guilt? - Were the rules and penalties applied consistently? - Was the penalty reasonable, given the offense?
Criteria for evaluating just cause: Just Cause Determinants
A common-law doctrine states that employers have the right to hire, fire, demote, or promote whomever they choose, unless there is a law or a contract to the contrary, and employees may quit at any time with or without notice.
Employment at will (EAW)
______________ hold positions for which they are not paid overtime.
Exempt employees
States that an employee's motivation is based on the probability that his or her efforts will lead to an expected level of performance that is linked to a valued reward.
Expectancy Theory
Two theories of motivation in particular influence the design of compensation systems. ___________ and ________ are particularly relevant to the perceptions employees have of the total rewards provided by the organization.
Expectancy theory and equity theory
TRUE OR FALSE: There is evidence that variable pay broadly available to most employees does NOT improve company performance.
FALSE
System of sharing with employees greater than expected gains in profits and/or productivity.
Gainsharing
If done properly, the appraisal process can benefit both the organization and its employees. The ____________ typically designs an organization's performance appraisal system. __________ then use the appraisal system to evaluate employees.
HR unit; managers
Performance appraisal must not simply be an _______ requirement but should also be an important management process because guiding employees' performance is among the most important responsibilities of being ___________.
HR; a manager
- Negative publicity and damaged reputation - Negative influence on employees' esprit de corps
Immeasurable Costs of Accidents
- Decreased/lost productivity - Management time for accident investigation - Claims administration - Time and production lost by coworkers - Reduced work group efficiency - Time lost by supervisor - Cost to replace injured workers and train new workers
Indirect Costs of Accidents
Total Rewards typical distribution among the 3 types of compensation:
Intangible - 10% Tangible indirect - 30% Tangible direct - 60%
A holistic approach to leveraging and building human capital.
Integrated talent management
Reasonable justification for taking employment-related action.
Just cause
Union contacts typically require an employer to provide a "good reason" for disciplinary actions such as dismissal, but this protection does not exist in at-will situations. Definitions vary, but the overall concern is fairness. To be viewed by others as just, any disciplinary action must be based on facts in the individual cause. Violations of these requirements can result in legal action. For instance, a court could easily rule that a high-performing worker was not fired for just cause if he had been terminated for poor performance after taking unpaid time off associated with the Family and Medical Leave Act to help a sick relative.
Just cause
Although employers have no absolute protection from liability, the following actions can help:
1) maintain a safe workplace for all by seeking the safest working methods 2) comply with all state and federal safety laws 3) inform employees of any known risks 4) document employee acceptance of any risks
Over the years employees have joined unions for two general reasons:
1) they are dissatisfied with how they are treated by their employers 2) they believe that unions can improve their work situations
What are the 2 uses for performance appraisals?
1. provide a measure of performance for consideration in making pay or other administrative decisions about employees 2. development of individuals
_________________ must be paid overtime.
Nonexempt employees
Employers adopt variable pay for many reasons, including the following:
- link strategic business goals and employee performance - enhance organizational results and reward employees financially for their contributions - recognize different levels of employee performance through different rewards - achieve HR objectives such as increasing retention, reducing turnover, recognizing succession training, and rewarding safety - reduce fixed costs
While the Worker Adjustment and Retraining Notification Act (WARN) of 1988 requires employers to give _________' notice of mass layoff or plant closings, it does not mandate __________.
60 days severance pay
Surveys by Aflac and Towers Watson show that over ______ of employees regard employee benefits as an important factor in their decision to join or remain with an organization. There is also a strong connection between _________ with the benefits package and overall job satisfaction.
70% employee satisfaction
One report suggests that _________ of firms actively use performance management.
86%
Employers apparently believe that pay based on performance can be used to tie business objectives to compensation because performance-based compensation is increasing for a large part of the workforce. Variable pay plans in some form are used by the majority of companies. A survey by Aon Hewitt found that ______ of companies offer variable programs that amount to 12.7% of payroll for salaried exempt employees.
91%
________ can influence employees' decisions about which employer to work for, whether to stay with or leave an organization, and when to retire. What ________ are offered, the competitive level of benefits, and how those benefits are viewed by individuals all affect employee _______ and _______ efforts.
Benefits attraction and retention
The practice of employees using their own mobile devices such as smartphones and digital tablets in the workplace raises additional issues. BYOD is becoming increasingly common, and it presents both advantages and disadvantages for firms. Employees are already familiar with their own devices, which makes them more efficient and productive using this technology. However, concerns about data security, lost or stolen devices, and privacy should be addressed with a company policy.
BYOD
- Medical treatment (medication, rehabilitation, surgery) - Disability benefit payments for lost time - Durable medical equipment - Workers' Compensation premiums - Fines for safety violations - Damage to work equipment
Direct Costs of Accidents
It is about fairness. It protects employees from unjust or arbitrary discipline or termination. This typically involves thoroughly investigating all employment actions and giving individuals an opportunity to express their concerns to objective reviewers of the facts in the situation. It represents ethical and respectful treatment of employees, and companies that fail to utilize such a process risk being seen as unethical. Organizational justice is a key part of this process.
Due process
Occurs when an employer is determining if there has been employee wrongdoing and uses a fair process to given an employee a chance to explain and defend his or her actions.
Due process
One-time payment of all or part of a yearly pay increase. The pure ________ approach does not increase the base pay. The base rate remains the same, which slows down the progression of base wages.
Lump-sum increase (LSI)
The major advantage of an ________ plan is that it heightens employees' awareness of what their performance levels "merited." Another advantage is that the firm can use ________ to slow down the increase of base pay and thus reduce or avoid the compounding effect on succeeding raises. One disadvantage of __________ is that workers who receive a lump-sum payment may become discouraged because their base pay does not change. Unions generally resist _________ programs because of their impact on pensions and benefits. And when calculating the employee's overtime pay, the _______ should be considered as part of the base wage calculation.
Lump-sum increase (LSI)
- Typically rate performance of employees - Prepare formal appraisal documents - Review appraisals with employees - Identify development areas
Managers
__________ and __________ often work together to communicate pay increases and to help manage perceptions of any changes made to employee compensation.
Managers and HR professionals
The primary reason for having such differentials is to reward and retain critical high-perofmring individuals. Key to rewarding exceptional performers is identifying how much their performance exceeds normal work expectations. Standard increases for average performers are usually aligned with labor market pay adjustments, which keeps those individuals at a competitive level. Lower performers receive less because of their performance issues, which "encourages" them to either improve their deficiencies or leave the organization. However, employees who perform exceptionally at work might feel entitled based on their high compensation, and managers should be aware that they might misbehave in the workplace as a result.
Performance-Based Increases: Targeting high performers
The most widely used job evaluation method that looks at compensable factors in a group of similar jobs and assigns weights, or points, to them.
Point Factor Method
Involves the responsibility to consider physical, human, and financial factors to protect organizational and individual interests.
Risk management (health, safety, and security)
The process of identifying the most important jobs in a company that provide a long-term advantage and then developing employees so that they can effectively work in these jobs.
Strategic talent management
Firms provide rewards for work units/teams for several reasons. _____________ can take the form of cash bonuses for the members or non cash rewards such as paid time off, merchandise, or trips. ___________ programs can place social pressure on members of the team because everyone in the group succeeds or fails together. Therefore, some argue that ______________ should be given to team members equally, although not everyone agrees.
Team incentives
An employment at will (EAW) statement in an employee handbook usually contains wording such as the following:
The Company does not offer permanent or guaranteed employment. Either the Company or the employee can terminate the employment relationship at any time, with or without cause, with or without notice. This is called Employment at Will. This employment-at-will relationship exists regardless of any other written statements or policies contained in this Handbook or any other Company documents or any verbal statement to the contrary.
Formal association of workers that promotes the interests of its members through collective action.
Union
___________ often occurs when employees feel disrespected, unsafe, underpaid, and unappreciated; they see a union as a viable option for change.
Unionization
Compensation that is tied to performance.
Variable pay
A pay for performance philosophy differs from a traditional entitlement compensation philosophy in which difference in length of service is often the primary differentiating factor. _________ are designed to motivate employees to invest discretionary effort - the extra, over and above minimum needed to avoid getting fired.
Variable pay plans
__________ should be tied to desired performance. Employees must see a direct relationship between their efforts and results and financial and non financial rewards.
Variable pay systems
Unfortunately, some employers give __________ and call them merit raises, which they are not. They are usually given as a percentage raise based on standard market or financial budgeting determinations. If all employees get the same percentage pay increase, it is clearly not tied to merit or good performance. For this reason, employers should reserve the term merit for any amount above the standard raise, and they should state clearly which amount is for performance and which amount is the "automatic" portion.
across-the-board raises
Three ___________ uses of appraisal impact managers and employees the most: 1) determining pay adjustments, 2) making job placement decisions on promotions, transfers, and demotions, 3) choosing employee disciplinary actions up to and including termination of employment.
administrative
An additional concern is the __________ of the US workforce and how expectations about benefits by different generations of employees are affecting benefit decisions for employers. For instance, many __________ who are approaching retirement age are concerned about retirement benefits and health care, while _________ are more interested in flexible and portable benefits as well as career development opportunities. Similarly, increased _________ in the workplace encourages companies to offer more voluntary benefits that satisfy different individual needs. Offering benefit plans that appeal to employees at different stages of life and with different needs and priorities is a way to attract and retain a _________.
changing composition Baby Boomers younger workers diversity diverse workforce
A ___________ is a job dimension commonly present throughout a group of jobs within an organization that can be rated for each job. For example, all jobs require some level of education and experience for successful performance.
compensable factor
A point factor system often uses __________ that reflect skill, responsibilities, social interaction, and working conditions. The skill dimension might be assessed on the basis of two ___________: the level of education and work experience needed for successful job performance.
compensable factors
An effective total rewards approach balances the company's interests and costs with the needs and expectations of employees, which can be a difficult process. On one hand, costs related to ___________ represent one of the largest portions of total operating expenses in most companies.
compensation
National restrictions on ___________ include prohibitions against the use of race, age, sex, national origin, religion, and/or disabilities as bases for termination. Restrictions on other factors vary from state to state. Nearly all states have enacted one or more statutes to limit an employer's right to discharge employees.
employment at will
This theory states that individuals judge fairness (equity) in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others. These referent others are workers that the individual uses as a reference point to make these comparisons. Inputs include time, effort, loyalty, commitment, skill, knowledge, and enthusiasm. Outcomes include pay, job security, benefits, praise, recognition, and thanks.
equity theory
Under the FLSA, employees are classified as __________.
exempt or nonexempt
__________ is not necessarily granted to all salaried jobs; each job must be evaluated on a case-by-case basis. The FLSA does not require employers to pay overtime for salaried exempt jobs.
exempt status
In particular, this theory emphasizes the importance of finding valued rewards for the employee. Rewards that are not appreciated by the employee have little power to motivate performance. Additionally, a break between the promise and delivery of the reward will decrease motivation. Managers who understand the key linkages in these expectations can better monitor employee motivation and adjust reward systems accordingly.
expectancy theory
The _____________ was first introduced by Victor Vroom at Yale in 1964 and was later expanded by Porter and Lawler.
expectancy theory of motivation
When designing base pay, employers often categorize jobs into groupings that tie the FLSA status with the method of payment. Employers are required to pay overtime for __________ jobs to comply with the FLSA.
hourly
A common mistake employers make is not paying overtime to any salaried employees, even though some may qualify for ____________.
nonexempt status
Performance management should do the following: - Make clear what the _________. - __________ performance for personnel records. - Identify areas of _________ and needed development. - Provide ____________ to employees.
organization expects Document success performance information
The effectiveness of the reward system depends on how well compensation is linked to ____________ so that employees are encouraged to work in a manner that benefits the company.
organizational strategies
Despite laws prohibiting pay discrimination on the basis of sex, there is a persistent ________ between men and women in the workplace. The wage gap is wider in some industries than others. However, women appear to have gained some ground in recent years.
pay gap
Decisions about ___________ are important in the relationships between employees, their managers, and the organization. Individuals express expectations about their pay and about how much of an increase is "fair," especially compared with increases other employees receive.
pay increases
Successful ___________ allows managers to prepare employees for work by focusing on the most important components of their jobs. This is often done by using evaluations to identify the level of performance and then providing feedback about how work can be improved.
performance management
The rights of employees in work assignments are addressed as part of various regulations. Two primary areas where work assignments and concerns about safety and health intersect are......
reproductive health and unsafe work
Determining rewards at the appropriate level for each segment of the workforce is necessary to get maximum benefits from the pay plan. Since people tend to produce what is measured and rewarded, organizations must make sure that what is being rewarded is clearly linked to what is needed and that ___________ are distributed fairly.
rewards
Employees in positions classified as _________ are also entitled to overtime pay. These positions sometimes include secretarial, clerical, and salaried blue-collar positions (like shift supervisor).
salaried nonexempt
Time spent in an organization or working in a particular job, called _________, can be used as the basis for pay increases. Many employers have policies that require an employee to work for a certain length of time before being eligible for pay increases.
seniority or tenure
Companies may provide ________ to individuals whose jobs are eliminated or who leave the company by mutual agreement.
severance pay
Companies that have an entitlement philosophy rely more on ______________. Several methods can be used to provide ___________ to employees.
standardized pay increases
Performance management links _________ to results.
strategy
Performance management is often confused with one of its key components, __________.
the performance appraisal
__________ is the most popular job evaluation approach because it is relatively simple to use and considers the components of a job rather than the total job.
the point factor method
To attract and retain high-quality talent, companies design reward packages that appeal to many different people. Companies do this by addressing pay and benefits with a __________ approach.
total rewards
Another common employee reaction resembles students' response to tests. A professor may prepare a test that she perceives to be fair, but students may see it differently. Likewise, employees being appraised may not necessarily agree with the manager doing the appraising. However, in most cases, employees will view well-done appraisals as what they are meant to be - constructive feedback.
true
Pay for performance has not been well received in the public sector or labor unions, where a philosophy of entitlement has dominated for many years. Incentives can take many forms and may motivate some people but not others. Incentives might include simple praise, "recognition and reward" programs that award trips and merchandise, bonuses for performance accomplishments, money for successful team results, and profit sharing. A successful plan might include a combination of several types of incentives.
true
The opinions people have about unions in general along with the actions and decisions of managers influence whether they favor union representation. This implies that general opinions of organized labor create a certain mind-set among workers either for or against unions, regardless of the practices they immediately experience on the job.
true
More ________ tend to work in pink-collar jobs, and _______ overall tend to have a lower opinion of unions than do _______.
women; women; men