Human Resource Management Test 3

3 kinds of Justice

Outcome fairness

Procedural Justice

Interactional Justice

What I got compared to others

Outcome fairness

How a decision was made

Procedural Justice

How the decision was delivered

Interactional justice

Progressive discipline steps

1. Verbal Warning (know what they should do and where)

2. Written warning (They have fallen short on how to fix and the time to fix it)

3. Suspension

4. Dismissal

Where does work satisfaction come from?

The work itself

Pay and promotion

Supervision

Coworkers

How to manage survey feedback

Survey, Share, Act, Plan

Pay policies attach to what?

Jobs, not people

Average pay across jobs, external equity, market

Pay level

What is job structure (as related to pay)?

Relative worth of jobs, internal equity, job evaluation, fairness, cooperation, promotion, motivation

What does pay structure combine?

Pay level and job structure

What is equity theory?

Your outcomes/your inputs compared with others’ outcomes/others inputs

Outcomes of a good pay structure

Pay, benefits, recognition

Inputs as related to pay

Effort, education, experience

The upperbound

Labor costs push prices up

Product market competition

The lowerbound

Attract and keep talent

Labor market competition

Paying more can pay off

Efficiency pay wage theory

More effort and focus as related to higher pay

Incentive effect

Attract and keep high performers

Sorting Effect

Vroom’s Expectancy Theory

Expectancy (E) - Effort → Performance

Instrumentality (I) Performance → Reward

Valence (V) Value of reward

Motivation = EIV

Owners and agents want different things

Agency theory

What do behavior oriented contracts focus on?

Salary and hourly wages

Routines and time on task

What do outcome oriented contracts focus on?

Commissions, stock, profit sharing, results with employee risk

Managers and employees

Agency

6 pay programs

Merit Pay

Merit bonus

Individual incentives

Profit sharing

Stock options (ESOB)

Gainsharing

Compa-Ratio formula

Actual salary/midpoint of salary grade

4 aspects of the balanced scorecard

Financial

Customer

Internal Processes

Learning and growing

Focuses on fair payout

Distributive justice

Consistent payout

Procedural justice

Pay only works if it feels _____.

Fair