short answers MNGT 433

Employee development potential, administrative ease, personnel research potential, cost, validity.

How do you define a good appraisal format?

1. Employers always seek to maximize profits. 2. People are homogeneous and therefore interchangeable 3. The pay rates reflect all costs associated with employment 4. The markets faced by employers are competitive, so there is no advantage for a single employer to pay above or below the market rate

What are the basic assumptions of labor market theories?

Objectives, Measures, Eligibility, Funding

What are the four standards managers need to focus on when designing a pay-for-performance system?

Social Security, Unemployment, Workers compensation

Which are the benefits required by statutory law?

Lump-sum are cheaper and a one- time thing, they are not attached to base pay so they don't have to pay it each year

Why do companies prefer lump-sum pay over merit pay increases?

Disparate Treatment applies different standards to different employees . Disparate Impact applies different practices that have a different affect on a protected class.

Compare and contrast disparate treatment and disparate impact

Regulatory requirements, workforce reductions, voluntary turnover, cost reductions, employee relations

What are the potential problems associated with headcount reductions?

A Market line links a company's benchmark jobs with markets rates paid by competitors

What is a market line?

Begins with an estimate from top management of the pay increases budget for the entire organization

What is the top-down method of budgeting?