Human Resource Management Practice Flashcards2

What are the positive effects of linking compensation and performance?

It can serve as a genuine incentive and signal recognition while supporting perceptions of fairness when performance differences are rewarded.

What are the negative risks associated with linking compensation to performance?

Potential for unsustainable overexertion, narrowing focus solely to measured items, and the risk of crowding out intrinsic motivation.

In what type of tasks does performance-linked compensation work best?

It typically works better for simple tasks than for cognitively demanding ones.

Why does an 'analytical' target/objectives bonus system struggle in dynamic environments?

It is difficult to reliably specify performance or objectives in advance when conditions are ambiguous or changing, which risks gaming or misleading incentives.

How can the challenges of analytical bonus systems in ambiguous environments be mitigated?

By building in guidelines for ambiguity or shifting toward a more general/overall assessment when precise specification is unrealistic.

What are the two types of equity considered in pay fairness?

Distributive Equity (performance-reward relation compared to others) and Procedural Equity (unbiased and transparent process).

How is Distributive Equity typically addressed at a high level?

Via job and pay grading systems that put jobs into comparable levels based on job value.

How is Procedural Equity typically addressed at a high level?

Through standardized, transparent review steps and calibration sessions.

What are the main downsides of using pay grade systems?

Significant evaluation effort, risk of losing touch with the external market, bureaucratic tendencies, and reduced flexibility.

How do companies ensure a market connection if pay grade systems are disconnected from the market?

By identifying benchmark jobs and anchoring job-value levels to external pay via mid-points or a statistically computed market line.

What risks are associated with a pay grade system that is disconnected from the market?

The company risks underpaying (attraction and retention risk) or overpaying (excess costs) versus competitors.

What analysis is used to detect if internal pay is misaligned with external data?

Periodic market benchmarking or compa-ratio analysis.

What are four forms of linking compensation to organizational performance?

Profit sharing, employee stock/share ownership, employee stock options, and bonus multipliers based on unit/company performance.

How does an Employee Recognition System typically function?

It allows any employee or leader to formally acknowledge a colleague's special contribution through non-financial gestures or optional financial grants, usually via an IT platform.

What is a 'spot bonus' and what requires care when using it?

A one-time payment for extraordinary contribution; care is needed regarding equity and inflationary tendencies, requiring alignment and approval mechanisms.

What are the typical components of a Performance Management System?

A calendar-based process involving objective setting, ongoing/intermediate feedback, and a final assessment linked to compensation and development.

What does each letter in the SMART objective setting acronym stand for?

Specific (clear, unambiguous), Measurable (defined criteria), Attainable (realistic), Relevant (meaningful contribution), and Time-bound (clear deadline).

What elements constitute the 'fully loaded' cost of an employee?

Gross salary, employer social security contributions, cash value benefits (e.g., company car), pension costs, and workplace infrastructure.

Beyond raw cost, what factors should be weighed when comparing employee locations for a new IT hub?

Local market availability, turnover risk, language/skill fit, and the role's required global capability.

What are the three key topics within HR Governance?

Administration, Legal & Compliance, and Institutional Interaction/Representation.

Who are the key players in Industrial Relations?

Management, elected employee representatives (works councillors, shop stewards), works councils, and trade/labour unions.

What are the typical outcomes of collective bargaining in Industrial Relations?

Collective agreements (at the company or industry level) regarding pay and working conditions.

What are the pros of collective representation for employees?

It gives employees a voice, brings professional expertise to negotiations, and creates agreement/commitment across the workforce.

What are the cons of collective representation?

It can create inflexibility, introduce bureaucratic processes, foster adversarial dynamics, and introduce 'political' interests.

What are the specific stakeholder interests of society/taxpayers regarding Individual Development?

Efficient education spend and a resilient, competitive labour force.

What are the four stages of the 'job related learning cycle'?

Introduction, Growth, Peak, and Saturation.

How does development focus shift during the job-related learning cycle?

It shifts from sustaining or improving job performance in the short-term to career/path orientation in the mid-to-long term.

What are the three stages of the typical organizational/life learning cycle?

Entry, Experienced, and Senior stages.

What are the four learning styles distinguished by Kolb and Honey-Mumford?

Activist, Reflector, Theorist, and Pragmatist.

Why is it helpful to understand different learning styles?

Because people acquire and process learning differently, training design should offer varied methods rather than a one-size-fits-all approach.

What is 'into-the-job' development and what are some examples?

Professional training, onboarding, and trainee programmes designed to prepare an individual for a new role.

What are examples of 'on-the-job' development?

Learning by doing, coaching, and job enrichment, enlargement, or rotation.

What is the difference between 'along-the-job' and 'near-the-job' development?

Along-the-job includes shadowing and mentoring, while near-the-job involves working groups or expert groups.

What are 'off-the-job' and 'out-of-the-job' development activities?

Off-the-job includes external seminars, while out-of-the-job includes retirement preparation or outplacement.

How does mentoring differ from coaching?

Mentoring is typically internal, advice-based, and higher-level ('hands-on'), while coaching is expert-led questioning and guided reflection ('hands-off') in a professional relationship.

What three aspects determine learning success?

Participant factors, the training approach/quality, and the work environment (e.g., support to apply feedback).

What are Kirkpatrick's four levels of learning success?

Reaction, Learning, Behaviour, and Results/Impact.

What is the distinction between 'improvement' and 'development'?

Improvement closes gaps in current-role performance, whereas development builds capability for future roles and growth.

What are the steps for individual career planning?

Reflect on passions/assess capabilities, identify target roles and gaps, and perform a detailed gap analysis against requirements.

What approach is recommended for training budget allocation?

A priority/criticality matrix that weighs potential impact (strategic relevance) against current capability gaps or market availability.

What is the purpose of 'development concepts' like vocational training or leadership programmes?

They bundle tools and modules for a broader target group and topic to provide structured growth.

How are High Potentials (HiPos) segmented in a business?

Using a matrix that crosses Current Performance against Perceived Potential.

What are the four groups in the People Portfolio segmentation matrix?

High Potentials, Solid Successors/Potentials, Solid Performers, and Problems.

What is the typical action for 'Solid Performers' in the People Portfolio matrix?

They are typically sustained in their current roles or rotated to maintain engagement.

What factors are considered when evaluating a 'stretch assignment' for a HiPo?

Content fit (scope/leadership), the challenge/opportunity offered, the person's actual fit (mobility/preferences), and role availability.

How is succession management typically tracked at a high level?

By identifying potential successors for key roles, assessing their readiness levels (short/mid/long-term), and using a simple status indicator like red-yellow-green.

What are the expected effects of Hipo Assessment & Development Centres for observing leaders?

They allow leaders to get to know emerging talent and provide an opportunity to reflect on their own assessment skills.

What aspects of work design directly affect an individual?

The Workplace (setup/tools), Working Time (duration/autonomy), and the Work itself (quantity/quality).

What are the pros and cons of open office designs?

Pros include support for interaction, flexibility, and cost savings; cons include noise, distraction, and loss of personal space.

Why does R&D work typically require mutual alignment rather than rigid programs?

Because R&D work tends to be less routine, more autonomous, and occurs in more volatile conditions.

What is a major company-side 'con' of employees working from home?

Reduced transparency on performance/availability and limited connection between colleagues.

What is the difference between the most rigid and most flexible working hours models?

Rigid models involve fixed start/end times with no flexibility, whereas trust-based models allow full autonomy as long as results are delivered.

What are the three ways to categorize flexible working time?

Distribution (which days), Duration/Position (core hours flex), and Volume (overtime/time accounts).

What coordination tools are best suited for stable and predictable situations?

Programs and plans, such as Standard Operating Procedures (SOPs) and budgets.

What coordination tools are best suited for VUCA (Volatile, Uncertain, Complex, Ambiguous) conditions?

Personal alignment, skills/training, and informal norms or culture.

How should coordination differ between generic car production and a hydrogen research unit?

Production should use rigid plans/SOPs, while research needs coordination via skills, personal leadership, and mutual alignment.

What person factors influence social interaction in groups?

Experience, personality, values, demographics, role/status, and informal network position.

How can friction between MBTI Introverts and Extraverts be managed in a team?

By building explicit space for quieter or written input and allowing more reflection time.

How might high 'power distance' affect a multinational team workshop?

It may make members less willing to challenge the leader or person in authority.

What are four common negative effects that can occur in group work?

Coordination complexity (increasing with size), social loafing, group-think (conforming), and lack of individual accountability.

What are the four stages of group development?

Forming, Storming, Norming, and Performing.

What support is needed during the 'Storming' stage of group development?

Conflict management and review processes.

Why might an elite rowing team be slow despite high individual skill?

They may lack team cohesion (norming not reached) or have a rhythm/role mismatch, requiring interpersonal alignment over technical skill.

What are the primary responsibilities of a leader besides people leadership?

Content leadership (accountability), supporting other units, coordination/alignment, participating in leadership teams, and external representation.

According to the 'need for leadership' concept, what is the objective need?

The need for information, guidance, coordination, motivation, and monitoring in a specific work situation.

What is the 'subjective' need for leadership?

The perceived need based on an individual's personal preference for involvement and their risk assessment.

How do leadership styles range along the autonomy spectrum?

From directive ('tell') through 'sell', 'consult', and 'join', to participative ('delegate' and 'autonomous').

What style does Hersey & Blanchard recommend for a 'high ability / low willingness' situation?

A 'participating' style (low task, high relationship support).

What style does Hersey & Blanchard recommend for a 'low ability / low willingness' situation?

A 'telling/directing' style (high task, low relationship).

What are the four types of organizational culture described in the notes?

Professional/Clan, Entrepreneurial/Adhocracy, Machine Bureaucracy, and Divisionalised/Market Segmented.

Which organizational culture is characterized by efficiency, consistency, and programming?

Machine Bureaucracy.

To systematically derive survey questions, what two models link feedback to objectives?

Hackman/Oldham's job-characteristics model and Porter/Lawler's motivation model.

If survey items remain at the bottom for $10$ years, what is a likely reason?

A lack of real follow-up action or structural drivers that are difficult to change.

What is included in the 'hidden' costs of employee turnover?

Lost productivity of the departing employee, of colleagues covering the gap, and the new hire's ramp-up deficit.

Why might a turnover rate of $$1.2000000000000002E