Managing People/Organizations Text 1

Differentiation Strategy

(Harley Davidson, Apple) - Create value by convincing the market that your product/service is different from all the others. - Produce a product or deliver a service that is different than competitors - By differentiating the product or service the firm is able to charge a premium, and therefore maintain a profit

Focus Strategy

(Rolex, Lamborghini) - Narrow product lines, targeted buyer segments or targeted geographical markets - Attain advantage through cost or differentiation

Low-cost strategy

(Walmart, McDonalds) - Create value by reducing costs - Produce a product or delivery a service at the lowest possible cost - By keeping costs low, the firm is able to charge less than competitors and maintain a profit

Maslow's Hierarchy of Needs

(level 1) Physiological Needs, (level 2) Safety and Security, (level 3) Relationships, Love and Affection (level 4) Self Esteem (level 5) Self Actualization

Three factors to achieve high performance behavior

- Ability - Motivation - Opportunity

Administrative

- Drives administrative decisions - Salary guidelines - Pay Raises - Promotions, Demotions - Retention, Termination - Layoffs - Recognition of individual performances

Employee Benefits of HPWS

- Have more involvement with the organization - Experience growth and satisfaction, and become more valuable as contributors

Organizational Outcomes and Competitive Advantages with HPWS

- Higher productivity - Lower costs - Better responsiveness to customers/customer satisfaction - Quality - Greater flexibility - Higher profitability

Developmental

- Identifies individual needs - Skill set development, behavioral or emotional intelligence development - Not just developmental needs of the individual - Identifies gaps in the HR processes

Types of Selection Methods

- Interviews - References and Background tests - Physical Ability Tests - Cognitive Ability Tests - Personality Inventories - Work Samples - Honesty and Drug Tests

Strategic

- Links employee behaviors to goals through feedback - Identifies strengths/weaknesses - Creates/maintains engaged workforce - Identifies developmental opportunities - Rewards good performance - pay, recognition, other - Helps organization meet financial goals

List Porter's Strategies

- Low Cost Strategy - Differentiation Strategy - Focus Strategy

Four dimensions of HRM

- Managing The Human Resource Environment - Acquisition and Preparation of Human Resources - Assessment and Development of Human Resources - Compensation of Human Resources

5 Criteria used to evaluate performance management systems

- Strategic - Congruence - Validity - Reliability - Acceptability - Specificity

Strategic Human Resource Management

- The pattern of human resources deployments and activities that enable an organization to achieve its strategic goals - Identify and implement HRM practices to ensure the necessary human capital is in the correct position within the firm

5 Dimensions of Personality Inventories

1. Extroversion 2. Inquisitiveness 3. Conscientiousness 4. Agreeableness 5. Adjustment

5 Evaluation Selection Method Standards

1. Reliability 2. Validity 3. Generalizability 4. Utility 5. Legality

Ways to manage performance

1. Solid performers 2. Misdirected effort 3. Under-utilizers 4. Deadwood

Age Discrimination in Employment Act

1967 law that prohibits discrimination of employees 40 years and up.

positive reinforcement

A pleasant consequence follows the desired behavior - causing the behavior to increase

What does a High Performance Work System do?

A system of management practices that together foster the development of a highly - Knowledgeable, skilled, and able workforce - Motivated workforce - A workforce that has Opportunity to use its ability and motivation to achieve objectives

What is Porter's Strategy Typology?

According to Michael Porter, competitive advantage results from creating value.

Content Theory: Using McClelland's Acquired Needs

Achievement Affiliation Power

negative reinforcement

An unpleasant consequence is removed following the desired behavior - causing the behavior to increase

Saftey

Consists of the need to be safe from physical and Physiological harm

Openess to experience

Curious, imaginative

What is Step 1 in the Effective Performance Management Process Model?

Defines performance outcomes for company division and department

Conscientiousness

Dependable, organized, perserving

self-actualization

Desire for self-fulfillment to become the best one is capable of becoming

What is Step 2 in the Effective Performance Management Process Model?

Develop employee goals, behavior, and actions to achieve outcomes

Adjustment

Emotionally stable, secure, content

Strategic Knowledge Workers

Employees who have unique skills that are directly linked to the company's strategy. Ex: top management

Supporting Labor

Employees whose skills are of less strategic value and generally available in the labor market. Ex: clerical workers, cashiers

Core Employees

Employees with skills to perform a predefined job that are quite valuable to a company, but not particularly unique or difficult to replace Ex: Salespeople, department managers

What is Step 4 in the Effective Performance Management Process Model?

Evaluate Performance

What is Step 5 in the Effective Performance Management Process Model?

Identify improvements needed

Complementary/Alliance Partners

Individuals and groups with unique skills, but those skills are not directly related to a company's core strategy. Example: consultants

Physiological

Most basic need. Entails having enough food, air, and water to survive

Esteem

Need for reputation, presige, and recognition from others. Also includes need for self-confidence and strength

Contrast rater error

Occurs when the rater compares individuals against each other instead of against performance goals

Justice Theory

Organizational justice refers to the extent to which people perceive that they are treated fairly at work

Step 6

Provide consequences for performance results

What is Step 3 in the Effective Performance Management Process Model?

Provide support and ongoing performance discussions

Horns rater error

Rater gives employee low ratings on all aspects of performance because of an overall negative impression of the employee

central tendency rater error

Rater gives middle or average ratings to all employees despite their performance.

Types of Motivation: Extrinsic

Results from external aspects of the job; pay, promotions, comp benefits, tangible awards/rewards

Types of Motivation: Intrinsic

Results from internal rewards that are part of the job itself; responsibility, challenge, feedback or self-administered awards.

Four-Fifths Rule

Rule of thumb that finds evidence of discrimination if an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group.

5 aspects of emotional intelligence

Self-Awareness, Self-Regulation, Empathy, Social Skills, Self-motivation

Extroversion

Sociable, assertive, talkative

Assessing your employees knowledge, skills, and abilities and developing them in order to meet your organizations goals is known as:

Strategic human resource management

Strategic Congruence

The extent to which the performance management system elicits job performance that is consistent with the organization's strategy, goals, and culture.

core capabilities

The knowledge and skill that resides in an organisation. Examples: strategic planning, management, communication, teamwork, project management, etc.

Sexual Harassment: Quid Pro Quo

Tit-for-tat: offering or withholding something until sexual favors are performed. Example - you won't get this promotion if you don't do xyz.

Agreeableness

Trusting, Good natured, Cooperative

Equity/Justice Theory

a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships

Bona Fide Occupational Qualification

a necessary qualification for performing a job

Goal Setting Theory

a theory that says that specific and difficult goals, with feedback, lead to higher performance

3 purposes of performance management

administrative, strategic, developmental

What is validity?

assesses all the relevant and only the relevant -Validity gives meaning to the test scores, and validity evidence can indicate there is linkage between test performance and the candidate's potential job performance.

Thorndike's Law of Effect

behaviors followed by favorable consequences become more likely, and behaviors followed by unfavorable consequences become less likely

Disparate Treatment

exists when individuals in similar situations are intentionally treated differently based upon race, color, religion, sex, national origin, age, or disability status. EX: Of only minority applicants are required to take a pre-employment assessment test

Title VII of the Civil Rights Act of 1964

forbids discrimination in all areas of the employment relationship - race - color - religion - sex - national origin Established EEOC

Sexual Harassment Hostile Work environment

harassment or sexist remarks

Disparate (Adverse) Impact

occurs when a neutral employment practice disproportionately excludes a protected group from employment opportunities EX: If you test all applicants and only minorities are eliminated based on the results of the assessments

Similar to me Rater Error

occurs when the individuals who are similar to the raters in race, gender, background, interests, beliefs get higher ratings than those who aren't similar

Leniency Rater Error

occurs when the rater gives high ratings to all employees despite their individual performances

Americans with Disabilities Act

prohibits discrimination against the disabled

Halo Rater Error

rater gives employee high ratings on all aspects of performance because of an overall positive impression of the employee

Strictness Rater Error

rater gives low ratings to all employees regardless of their performance

What is reliability?

the consistency with which the same event is repeatedly measured. scores are consistent across repeated testing. - is the degree to which a measure of physical or cognitive abilities or traits is free from random error

Validity

the extent to which a test measures or predicts what it is supposed to

What is content validity?

the extent to which a test samples the behavior that is of interest items, questions or problems in a test are representative samples of situations that occur in the job.