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Intro to HR Exam 2
Term | Definition |
---|---|
Approaches to measuring performance | Comparative approach, attribute approach, behavioral approach, results approach, 360-degree appraisal |
Comparative approach | Comparing employees to each other. Can involve simple ranking, forced distribution (have to give certain # of people certain rankings), paired comparison (compare each employee to everyone else). |
Attribute aproach | Rating employees based on traits. Can involve graphic rating scales (rating based on traits themselves) or mixed-standard scales (choosing between statements that represent traits). |
Behavioral approach | Critical incidents approach (managers write down outstanding incidents), behaviorally-anchored rating scales (AKA BARS, managers choose between statements representing behaviors), behavior observation scales (rating frequency of behaviors) |
Results approach | Management by objectives (MBO): incorporates organizations goals into appraisal system, managers + subordinates jointly establish and evaluate goals |
360 degree appraisal | Includes reports from supervisors, peers, subordinates, customers, the employees themselves |
Similar-to-me-error | Bias toward people who remind you of yourself |
Contrast error | Evaluating compared to other employees (especially good or especially bad) instead of compared to standards |
Errors in distribution | When ratings don't follow a bell curve (too lenient, too harsh, central tendency) |
Recency error | Weighting recent behaviors/results too heavily |
Halo effect or horns error | Letting one positive (or negative) characteristic determine a person's rating |
Appraisal politics | Distorting ratings to achieve certain goals |
Strategic congruence | A performance measurement criteria that deals with whether or not a rating measure elicits job performance that is consistent with the organization's strategy/goals/culture |
Validity | Does a rating measure assesses all (and ONLY ) the relevant aspects of job performance? Avoid criterion deficiency (not rating enough aspects) and criterion contamination (rating based on things people can't control) |
Reliability | Does the measure provide consistent results? Consider inter-rater and test-retest reliability |
Acceptability | Do the users (raters and recipients) accept the rating measure? Is it clear and fair? |
Specificity | Does the measure provide guidance about expectations and how they can be met? |
Succession planning | Identifying, tracking, and developing high-potential employees |
Voluntary v. involuntary turnover | Voluntary is initiated by employee, involuntary is initiated by employer |
Employment-at-will | Employer or employee can sever relationship at any time, for any (non-discriminatory) reason, with or without notice. (National policy in all states but Montana) |
Wrongful discharge (exception to employment-at-will) | Violation of public policy (when you're fired for doing something you're legally allowed/required to do) or violation of implied contract (when you're fired despite employer's promise of job security) |
Constructive discharge (exception to employment-at-will) | When an employer makes working conditions so intolerable that the employee feels they have to quit |
Alternative dispute resolution (ADR) | Employees agree that any disputes won't be taken to court/the EEOC. Process: open door policy (talk to boss), peer review (talk w/ others in the company), mediation (w/ outside professional), arbitration |
Organizational commitment | Employee's dedication to their employer, can cause psychological withdrawal if too low |
Job withdrawal | Can involve behavior change, physical withdrawal, psychological withdrawal |
Compensable factors | Things an organization is willing to pay for (accountability, experience, education, working conditions, etc.) |
Broad-banding | Reducing the number of job levels |
Davis-Bacon Act of 1931 | A federal law that requires federal contractor be paid local prevailing rates for similar labor |
Fair Labor Standards Act of 1938 (FLSA) | Establishes minimum wage, requires overtime pay (for non-exempt employees), prohibits wage discrimination based on gender, regulates child labor |
Forms of employee stock ownership | Stock options (give employees the chance to buy company stock at a fixed price), employee stock ownership plans (give employers tax/financial advantages when stock is granted to employees) |
Compa-ratio | Actual average pay for a pay grade ÷ Intended pay grade midpoint |
Gainsharing | Compensating based on group or plant performance rather than organization-wide. |
Reasons for growth of employee benefits | Laws passed after the Great Depression, wage controls instituted during WWII led to more benefits to recruit workers, tax incentives for benefit programs, cost advantage of group insurance, unionization, employer differentiation |
Unemployment insurance | Offsets lost income, helps workers find new jobs, provides incentives for employers to provide stable employment, preserves investment in skill |
Workers' compensation | Employer pays for work-related injuries, accidents, illnesses and death--based on no-fault liability. Includes disability income, medical care, death benefits, and rehabilitative services |
COBRA | Allows employees to keep insurance after leaving a company for any reason except gross misconduct |
PBGC | Organization that pays for failed defined benefit plans, financed through employer-paid premiums |
Defined benefit v. defined contribution | Defined benefit plans guarantee a certain benefit level based on salary, years of service, etc.--company bears the risk. In defined contribution plans, the company promises to contribute a certain amount to a fund--employee bears the risk. |
Cash balance retirement plan | A form of defined benefit plan in which employers contribute a certain, set amount of money that is guaranteed to earn interest at a predetermined rate |
Vesting | For defined benefit plans: 5 years “cliff”, 7 years graduated For defined contribution plans: 3 years “cliff”, 6 years graduated |
Family and Medical Leave Act (FMLA) | Requires that any employee who averages at least 25 hours/week for one year be allowed to take 12 weeks of unpaid leave |
Checkoff provision | Form of union security that involves an agreement for the employer to automatically deduct dues from employees' paychecks |
Closed shop | When someone has to join a union before being hired (not legal!) |
Union shop | When you have to join a union within a certain window after being hired (usually 90 days) |
Agency shop | When you aren't required to join the union, but if you don't, you still have to pay most of the dues |
Maintenance of membership | If you join a union, you have to stay at least until the next contract is negotiated |