Selection and Placement, Performance Management, Pay Structure Decisions

Flashcards covering key concepts in organizational selection systems, performance management, and compensation structure.

Organizational Selection System

A system designed to minimize error in selecting employees and improve a company's competitive position by choosing individuals with relevant qualifications.

Person-Job Fit

The degree to which an employee's competencies match the job requirements.

Person-Organization Fit

The degree to which an employee's values and culture align with the organization's culture and values.

Reliability

The consistency of a performance measure, free from random error.

Validity

The extent to which a performance measure assesses all relevant aspects of performance.

Utility

The degree to which selection methods enhance the organization's bottom-line effectiveness.

Generalizability

The degree to which validity extends to other contexts.

Legality

Adherence to existing laws and legal precedents in the selection process.

Behavioral Job Interview

An interview focused on past experiences and behaviors to predict future performance.

Situational Job Interview

An interview that presents hypothetical situations to assess how candidates would respond.

Performance Management Process

The process of ensuring employee activities and outputs contribute to business goals, including defining, providing feedback, and measuring performance.

Strategic Congruence

Alignment of employee behavior with organizational strategy.

Comparative Appraisal Method

A performance appraisal method that ranks employees relative to others.

Internal Equity

The fairness of one's pay relative to the pay of co-workers within the organization.

External Equity

The fairness of one's pay relative to what employees in other organizations earn doing the same job.

Equal Pay Act of 1963

A law establishing that equal pay is required for equal work.

Fair Labor Standards Act (FLSA)

Federal law that establishes minimum wage, overtime pay requirements, and child labor regulations.

Reinforcement Theory

Theory suggesting that high employee performance followed by a monetary reward increases the likelihood of future high performance.

Bonus

A financial reward not rolled into base pay.

Merit Pay Plan

A system where performance is rewarded with a pay increase.

Profit Sharing

An organizational incentive plan where payments are a percentage of the organization's profits, not part of base salary.