MGMT 3007 Exam III Study Review

Key Terms

High Performance Work System

High Performance Work System

An organization in which technology, organizational structure, people, and processes work together seamlessly to give an organization an advantage in the competitive environment.

Learning Organization

An organization that supports lifelong learning by enabling all employees to acquire and share knowledge.

Employee Engagement

The degree to which employees are fully involved in their work and the strength of their job and company commitment.

Brand Alignment

The process of ensuring that HR policies, practices, and programs support or are congruent with an organization’s overall culture (or brand), products, and services.

Cloud Computing

The practice of using a network of remote servers hosted on the internet to store, manage, and process data.

HRM Audit

A formal review of the outcomes of HRM functions, based on identifying key HRM functions and measures of business performance.

HR Analytics

Type of assessment of HRM effectiveness that involves determining the impact of, or the financial cost and benefits of, a program or practice.

e-HRM

Providing HR-related information over the internet.

Performance Management

The process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals.

Simple Ranking

Method of performance measurement that requires managers to rank employees in their group from the highest performer to the lowest performer.

Forced-Distribution Method

Method of performance measurement that assigns a certain percentage of emplyees to each category in a set of categories.

Paired-Distribution Method

Method of performance measurement that compares each employee with each other employee to establish rankings.

Organizational Behavior Modification (OBM)

A plan for managing the behavior of employees through a formal system of feedback and reinforcement.

Management by Objectives (MBO)

A system in which people at each level of the organzation set goals in a process that flows from top to bottom, so employees at all levels are ontruibuting to the organzation’s overall goals; these goals become the standards for evaluating each employee’s performance.

Strategic Purpose

Helps organization achieve its business objectives.

Mixed Standard Scales

Method of performance measurement that uses several statements describing each trait to produce a final score for that trait.

Involuntary Turnover

Turnover initiated by an employer, often with employees who would prefer to stay.

Voluntary Turnover

Turnover initiated by employees, often when the organiztion would prefer to keep the employee.

Job Involvement

The degree to which people identify themselves with their jobs.

Organizational Commitment

The degree to which an employee identifies with the organization and is willing to put forth effort on its behalf.

Alternative Dispute Resoultion (ADR)

Methods of solving a problem by bringing in an impartial outside but not using the court system.

Employment Assistance Program (EAP)

A referral service that employees can use to seek professional treatment for emotional problems of substance abuse.

Job Withdrawal

A set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally.

Fair Labor Standards Act (FLSA)

Federal law that establishes a minimum wage and requirements for overtime pay and child labor.

External Equity

Fairness of one’s pay relative to what employees in other organization’s earn for doing the same job.

Internal Equity

Fairness of one’s pay relative to other employees in the same organization relative to co-workers doing the same job as well as employees at higher and lower levels.

Hourly Wage

Rate of pay per hour worked.

Pay Grades

Sets of jobs having similar worth or content, grouped together to establish rates of pay.

Pay Range

A set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade.

Pay Differentials

Adjustment to a pay rate to reflect differences in working conditions or labor markets.

Job Structure

The relative pay for different jobs within an organization.

Pay Level

The average amount (including wages, salaries, and bonuses) the organizations pays for a particular job.

Pay Structure

The pay policy resulting from job structure and pay level decisions.

Minimum Wage

The lowest amount that employers may pay under federal or state law, stated as an amount of pay per hour.

Product Market

The competing goodss and services an organization offers to its customers.

Cost of Living

Cost of household’s typical expenses, such as house payments, groceries, medical care, and gasoline. Usually higher in other parts of the country, so the local labor market in those areas will likely demand higher pay.

Benchmarking

A procedure in which an organization compares its own practices against those of successful competitors.

Exempt Employees

Managers, outside salespeople, and any other employees not covered by the FLSA for overtime pay.

Nonexempt Employees

Employees covered by the FLSA requirements for overtime pay.