MGMT Chapter 6 Terms

MPS (Motivating Potential)

= ((Skill Variety + Task Identity + Task Significance) ÷ 3) × Autonomy × Feedback autonomy and feedback more important

Performance Appraisal

A process in which a rater or raters evaluate the performance of another employee

360-degree Feedback

A system where feedback is gathered from supervisors, peers, subordinates, and customers

Management by Objectives (MBO)

Setting companywide goals derived from corporate strategy Determining team- and department-level goals Collaboratively setting individual-level goals that are aligned with corporate strategy Developing an action plan Periodically reviewing performance and revising goals

Growth Need Strength

The degree to which a person has higher order needs such as self esteem and self actualization

Empowerment

The removal of conditions that makes a person powerless

When Are Goals More Effective?

When they receive feedback, when they have the ability, and when they have goal commitment

Bonuses

are one-time rewards that follow specific accomplishments of employees

Fair Hearing

ensuring that there is two-way communication during the appraisal process and the employee's side of the story is heard

Job Specialization

entails breaking down jobs into their simplest components and assigning them to employees so that each person would perform a select number of tasks in a repetitive manner.

Stock Option

gives an employee the right, but not the obligation, to purchase company stocks at a predetermined price

Sales Commissions

involve rewarding sales employees with a percentage of sales volume or profits generated

Judgment Based on Evidence

involves documenting performance problems and using factual evidence as opposed to personal opinions when rating performance.

Merit Pay

involves giving employees a permanent pay raise based on past performance

Adequate Notice

involves letting employees know what criteria will be used during the appraisal

Job Rotation

involves moving employees from job to job at regular intervals

Gainsharing

is a companywide program in which employees are rewarded for performance gains compared to past performance

SMART Goal

is a goal that is specific, measurable, aggressive, realistic, and time-bound

Job Enrichment

is a job redesign technique that allows workers more control over how they perform their own tasks. This approach allows employees to take on more responsibility

Autonomy

is the degree to which a person has the freedom to decide how to perform his or her tasks.

Profit Sharing

programs involve sharing a percentage of company profits with all employees

Job Enlargement

refers to expanding the tasks performed by employees to add more variety. By giving employees several different tasks to be performed, as opposed to limiting their activities to a small number of tasks, organizations hope to reduce boredom and monotony as well as utilize human resources more effectively

Structural Empowerment

refers to the aspects of the work environment that give employees discretion, autonomy, and the ability to do their jobs effectively. The idea is that the presence of certain structural factors helps empower people, but in the end empowerment is a perception.

Goal Commitment

refers to the degree to which a person is dedicated to reaching the goal

Task Identity

refers to the degree to which a person is in charge of completing an identifiable piece of work from start to finish

Feedback

refers to the degree to which people learn how effective they are being at work

Skill Variety

refers to the extent to which the job requires a person to utilize multiple high-level skills

Task Significance

refers to whether a person's job substantially affects other people's work, health, or well-being

Job Characteristics Model

the model describes five core job dimensions leading to three critical psychological states, resulting in work-related outcomes.

Piece Rate Incentives

when employees are paid on the basis of individual output they produce