Managing People Chapter 5 Flashcards

Flashcards on Managing People Chapter 5

Reliability

the degree to which a measure is free from random error

Validity

the extent to which performance on the measure is related to performance on the job

Criterion-related validation

Method of establishing validity by showing a substantial correlation between test scores and job-performance scores.

Content Validation

items, questions, or problems posed by a test are representative of situations or problems that occur on the job

Generalizability

the degree to which the validity of a selection method established in one context extends to other contexts

Utility

the degree to which information provided by selection methods enhances the effectiveness of selecting personnel

Civil Rights Act of 1991

protects individuals from discrimination based on race, color, sex, religion, and national origin

Age Discrimination in Employment Act of 1967

covers individuals over 40

Americans with Disabilities Act (ADA) of 1990

protects individuals with physical or mental disabilities (or with a history of the same)

Situational Interviews

Confronts applicants on specific issues, questions, or problems likely to arise on the job

Cognitive Ability Tests

Verbal Comprehension, Quantitative ability, Reasoning ability

Personality Inventories

Five major dimensions of personality, known as the “Big 5”: Extroversion, Adjustment, Agreeableness, Conscientiousness, Openness to Experience

Emotional Intelligence

self-awareness, self-regulation, self-motivation, empathy, social skills

Performance Appraisal

get information on how well employees are doing their jobs

Performance Feedback

Provide employees with information on their performance

Continuous Management Performance Process

Ongoing conversations between managers, their direct reports, and the team focused on work progress, feedback, goals, needs, and more frequent check-ins

Strategic Congruence

The extent to which the performance management system elicits job performance that is congruent with performance, strategy goals, and culture must be flexible to change

Interater Reliability

consistency among individuals who evaluate an employee’s performance

Specificity

the extent to which a performance measure tells employees what is expected and how to meet those expectations

Comparative Approach

compare an individual’s performance to others

Behavioral Approach

Behaviorally anchored rating scales (BARS), Behavioral observation scales (BOS)

Competency Models

identifies and provides descriptions of common competencies

The Results Approach

The use of objectives

Balanced Scorecard

Financial, Customer, Internal or operations, Learning and growth

Productivity Measurement and Evaluation System (ProMES)

system used for measuring and evaluating productivity

Quality Approach

Customer orientation, Prevention approach to errors, Continuous improvement

360-Degree Appraisal

Performance Management Systems Technology

Heuristics

unconscious bias

Equity Theory

Social Comparisons of Pay

External Equity

Focus on what employees in other organizations are paid for doing the same job.

Internal Equity

Focus on what employees within the same organization are paid.

Efficiency Wage Theory

employees paid more than they would receive elsewhere will put forth effort to retain good jobs

Benchmarking

comparing an organization’s practices against those of the competition

Job Evaluation

composed of compensable factors

Globalization, Geographic Region, Pay Structures

market pay structures can differ substantially across countries in terms of level and relative worth of jobs

Competency-Based pay

compensates employees to learn more skills and become more flexible in their jobs

Skill-based pay

increases workforce flexibility, facilitates decentralization, making to those who are most knowledgeable, contributes to a climate of learning and adaptability, and gives employers a broader view of organizational functions

Reinforcement Theory

A response followed by a reward is more likely to occur in the future.

Expectancy Theory

emphasizes expected rewards, motivation is a function of expectancy, instrumentality, and valence perceptions, compensation mainly influences instrumentality, the perceived link between behaviors and pay

Extrinsic Motivation

depends on rewards (such as pay and benefits) controlled by an external source

Intrinsic Motivation

depends on rewards that flow naturally from work itself; extrinsic incentives generally do not hurt intrinsic motivation.

Agency Theory

focuses on divergent interests and goals of an organization’s stakeholders(principals and agents), and ways that employee compensation can align these interests and goals.

Sorting effect

individual pay programs may affect the nature and composition of an organization’s workforce, linking pay to performance may attract and retain more high performers, may attract different personality traits and values