Test 4 MGT

performance management

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

involves knowing what activities and outputs are desired, observing whether they occur, and providing feedback to help employees meet expectations

Step 1 to performance management

define performance outcomes for company, division, and department

step 2 to performance management

develop employee goals, behavior, and actions to achieve outcomes

step 3 to performance management

provide support and ongoing performance discussions

step 4 to performance management

evaluate performance

step 5 to performance management

identify improvements needed

step 6 to performance management

provide consequences for performance results

strategic purpose (of performance management)

help organizations achieve its business objectives by linking employee’s behavior with the organization’s goals

total quality management

a companywide effort to continually improve the ways of people, machines, and systems accomplish work

differs from traditional performance measurement in that it assesses both individual performance and the system in which the individual works

developmental purpose (to performance management)

it serves as a basis for developing employees’ knowledge and skills

makes employees aware of their strengths and of the areas in which they can improve

Management by Objectives (MBO)

a system in which people at each level of the organization set goals in a process that flows from top to bottom, so that all levels contribute to the organization’s overall goals

Behaviorally anchored rating scale (BARS)

intended to define performance dimensions specifically using statements of behavior that describes different levels of performance. (the statements are anchors of the performance levels)

360-degree performance appriasal

performance measurement that combines information from the employee’s managers, peers, subordinates, self, and customers

Halo error

bias causes favorable ratings

horns error

bias causes negative ratings

similar-to-me error

raters tend to give higher evaluations to people they think are similar to themselves

contrast error

rater compares individual not against objective standard but against other employees

leniency

reviewer rates everyone near the top

strictness

reviewer favors lower rankings

central tendency

reviewer rates everyone in middle of scale

involuntary turnover

when organizations initiate turnover with employees who would prefer to stay

ex. terminating an employee for drug use or laying off employees during an economic downturn

voluntary turnover

when the employees of an organization initiate the turnover when the organization would prefer to stay

employees may retire or take a different job with another company

wrongful discharge

employees sometimes sue their employers for wrongful discharge

can be found illegal if it violates a law (ex antidiscrimination) or public policy, etc.

discrimination

having a formal discipline policy helps the organization comply with equal employment opportunity requirements

progressive discipline

principles of justice suggest that the organization prepare for problems by establishing a formal discipline process in which the consequences become more serious if the employee repeats the offense

identifies and communicates unacceptable behaviors and responses to a series of offenses with actions shown in figure

hot-stove rule

discipline should be like a hot stove, glowing/burnig stove gives warning not to touch

anyone who ignores the warning will be burned

the stove has no feelings to influence which people it burns but burns all people the same

the burn is immediate

open door policy

based on the expecation that two people in conflict should first try to arrive at a settlement together

Employee Assistance Program (EAP)

-referral service employees can use to seek professional treatment for mental health or other personal issues.

-many are fully integrated into health benefits plans

Quiet Quitting

individuals performing tasks associated with their jobs but not going above and beyond their specific duties

implications of quiet quitting

can lead to a loss of competitive advantage; overall negative shirt in corporate culture; job dissatisfaction

job withdrawal

-set of behaviors with which employees try to avoid the work situation physically, mentally, and emotionally

-results when circumstances of job lead to dissatisfaction

three forms of job withdrawal

1. behavior change- may engage in whistle blowing or file lawsuits

2. physical job withdrawal- tardiness or absenteeism, job transfer request, or resigning

3. psychological withdrawal- employees are physically at work but their minds are elsewhere

• decrease in job involvement and organizational committment

job satisfaction

pleasant feeling resulting from perception that job fulfills or allows fulfillment of one’s important job values

is related to person’s values

satisfaction is based on perception

Fair Labor Standards Act (FLSA)

establishes a national minimum wage that is $7.25 per hour; must pay higher wages for overtime (1.5)

Exempt employees

managers, outside salespeople, and other employees not covered by FLSA requirements (salary)

Nonexempt employees

employees covered by FLSA requirements for overtime pay

benchmarking

a procedure in which an organization compares its own practices against those of successful competitors'

• used for info abt current pay rates at competitiors organizations

job evaluation

- measures relative internal worth of organizations job’s

- committee identifies each job’s compensable factors

• (characteristics organization values and is willing to pay for)

piecework rate

rate of pay per each unit produced

pay range

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 policy lines

line on a graph shows relationship between job evaluation points and pay rates

pay grades

sets of jobs having similar worth or content grouped together to establish rates of pay (may not match market rate)

pay differentials

adjustment to pay rate to reflect differences in working conditions or labor markets

• differentials are often offered in US based on geographic location

procedural justice

- a judgement that fair methods were used to determine the consequence

- procedures should be consistent, unbiased, accurate, correctable, consider everyone affected, and ethical;

outcome fairness

- depends on employee’s judgement that the consequences of a decision are just

- everyone should know what to expect through clearly communicated policies.

Alternative Dispute resolution (ADR)

open-door policy; peer review; mediation; arbitration

open-door policy

based on the expectation that 2 people in conflict should first try to arrive at a settlement together, the organization has a policy of making managers available to hear complaints

Peer review

the people in conflict take their conflict to a panel composed of representatives from the organization at the same levels as the people in the dispute

mediation

a nuetral party from outside the organization hears the case and tries to help people in the conflict arrive at a settlement

Arbitration

a professional arbitrator from outside the organization hears the case and resolves it by making a decision. Most arbitrators are experiences employment lawyers or retired judges

job involvement

degree to which people identify themselves with their jobs

people with high job involvement consider their work an important part of their life

stay interviews

ask employees why they stay with the company

exit interviews

discuss a departing employee’s reasons for leaving

job structure

consists of the relative pay for different jobs within the organization

establishes relative pay amoung different functions and different levels of repsonsibility

pay transparency

refers to the practice of openly communicating information about wages or salary to employees and job candidates