MPO Exam 2

Pay structure,Relative pay of different jobs within an organization.

Job structure,Relative pay comparison among various jobs.

Pay level,Average compensation including wages, salaries, bonuses.

External equity,Pay comparison with similar jobs outside the company.

Internal equity,Pay comparison among employees within the organization.

Product market competition,Selling goods/services at prices for ROI.

Labor market competition,Pay required to attract similar employees.

Market pay surveys,Data collected on key jobs in labor market.

Key jobs,Benchmark jobs common across many organizations.

Non key jobs,Unique jobs not comparable via market surveys.

Job evaluation,Systematic process to assess job value.

Point system,Quantitative method assigning points to job value.

Compensable factors,Criteria used to evaluate job worth.

Pay policy line,Guideline for reasonable compensation for non-key jobs.

Broad-banding,Collapsing pay ranges to increase lateral movement.

Stock options,Right to buy stock at discounted prices.

CEO pay,Varies with stock market performance.

Equal Pay Act 1963,Prohibits gender discrimination in equal jobs.

FLSA 1938,Established minimum wage and overtime laws.

Pay grades,Classifications of jobs based on pay levels.

Job rating,Assessing job based on compensable factors.

Total points,Sum of points assigned in job evaluation.

Motivation,Force causing goal-directed behavior in individuals.

Intrinsic Motivation,Motivation driven by internal feelings and satisfaction.

Extrinsic Motivation,Motivation driven by external rewards or punishments.

McGregor's Theory X,Employees dislike work; need monitoring and rewards; must be extrinsically motivated

McGregor's Theory Y,Employees are engaged, responsible, and self-motivated.

intrinsic and extrinsic motivation can coexist

Herzberg's Two-Factor Theory,hygiene factors and motivators motivate employees postively/ negatively

Hygiene Factors,Work context elements causing dissatisfaction.

Motivator Factors,Content elements leading to job satisfaction.

Maslow's Needs Theory,Needs (high to low) Self actualization, esteem, affiliation, security, physiological

McClelland's Acquired Needs Theory,Focuses on achievement, affiliation, and power needs.

Self Determination Theory,Fundamental needs: Competence, relatedness, Autonomy

Practical goals:

Equity Theory,Focus on fairness of treatment compared to others.

Inputs,Perceived contributions made by an individual.

Outputs,Perceived rewards received from a job.

Distributive Justice,the extent to which individual believe that the outcomes they receive are fair

Procedural Justice,Fairness of processes used to distribute outcomes.

Interactional Justice,Respectful treatment and adequate explanations given.

Expectancy Theory,Motivation based on expected outcomes from performance.

Expectancy,Probability of achieving performance goals.

Instrumentality,Likelihood of receiving outcomes after achieving goals.

Valence,Value placed on outcomes from achieving goals.

Goal Setting,Process of establishing challenging and clear targets.

SMART Goals,Specific, Measurable, Actionable, Relevant, Timely targets.

Job Design,Activities altering job systems to enhance motivation.

Job Characteristics Model,Framework linking job characteristics to employee outcomes.

What is the first key job characteristic (1/5),Skill variety- the degree to which a job requires a variety of different activities in carrying out the work, involving the use of a number of different skills and talents of the person

What is the 2nd key job characteristic (2/5),Task Identity- the degree to which a job requires competition of a whole and notifiable piece of work, that is, doing a job from beginning to end

What is the 3rd key job characteristic (3/5),Task significance- the degree to which the job has a substantial impact on the lives of rather people whether those people are in the immediate organization or the world at large

What is the 4th key job characteristic (4/5),Autonomy- the degree to which the job provides substantial freedom, independence,and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out

What is the 5th key job characteristic (5/5),Feedback- the degree to which carrying out the work activities required by the job provides the indivital with direct and clear info about the effectiveness of his or her performance

Agency Theory Principals,The individuals attempting to influence the agent into engaging in specific behavior

Agency Theory Agents,The employee whose behavior is needed to make the good or provide the service

Edward W Deming Criticism of Merit Pay,Argued that it is unfair to rate individual performance, solution was to eliminate the link between individual performance and pay

What is one critique of merit pay related to teamwork?,It discourages teamwork

What is one critique of merit pay related to performance measurement?,Measurement of performance is unfair and inaccurate

What is one critique of merit pay related to individual performance?,There is too much emphasis on individual performance

Why is it argued that merit pay doesn't truly exist?,High performers are not paid much more than marginal and poor performers

Merit pay programs,link performance appraisal ratings to annual pay increases

Merit increase grid,combines an employee's performance rating with employees posting in a pay range to determine size and frequency of his or her pay increases

Merit bonus,merit pay in the form of a bonus

Individual incentives,reward individual performance but payments are not rolled into base pay

Gainsharing,unique form of compensation based on group or plant/branch/division performance rather than organization wide profits that does not become part of the employee's base salary

Profit sharing,Payments are based on a measure of organization performance (profits) and payments do not become a part of base pay

Stock options,Plan that gives employees the opportunity to buy company stock at a previously fixed price

Employee stock ownership plans (ESOP),Gives employers and remedies certain tax and financial advantages when stop is granted to employees