MGT 3200 - Final Exam

Human resource management

the process of finding, developing, and keeping the right people to form a qualified workforce

HRM process

attracting qualified employees
- recruiting\----selection
developing qualified employees
- training\----performance appraisal
Keeping qualified employees
- compensation\---employee separation

Labor laws

Regulate the interaction between management and labor unions that represent groups of employees

Boba Fide Occupational Qualification (BFOQ)

An exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are "reasonably necessary to normal operation"

Disparate Treatment

intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethnic group, national origin, or religious beliefs

Adverse impact

unintentional discrimination that occurs when members of a particular race, sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others

four-fiths (or 80 percent) rule

a rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact. a violation of this rule occurs when the selection rate fro a protected group is less than 80 percent, or 4/5, of the selection rate for a non protected group

Recruiting

the process of developing a pool of qualified job applicants

job specification

a written summary of the qualifications needed to successfully perform a particular job

Selection

the process of gathering information about job applicants to decide who should be offered a job

Validation

the process of determining how well a selection test or procedure predicts future job performance; the better or more accurate the prediction of future job performance, the more valid a test is said to be

Specific ability tests (aptitude tests)

tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well

Cognitive Ability Tests

tests that measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude

Biographical data (biodata)

extensive surveys that ask applicants questions about their personal backgrounds and life experiences

personality tests

an assessment that measures the extent to which an applicant possesses different kinds of job-related personality dimensions

work sample tests

tests that require applicants to perform tasks that are actually done on the job

assessment center

a series of managerial simulations, graded by trained observers, that is used to determine applicants' capability for managerial work

Needs assessment

the process of identifying and prioritizing the learning needs of employees

Performance appraisal

the process of assessing how well employees are doing their jobs

central tendency error

all workers are rated as average or in the middle of the scale

Halo error

all workers are rated as performing at the same level in all parts of their jobs

Leniency error

all workers are rated as performing particularly well

Objective performance measures

measures of job performance that are easily and directly counted or quantified

subjective performance measures

measures of job performance that require someone to judge or assess a worker's performance

Behavior Observation Scale (BOS)

rating scales that indicate the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance

rater training

training performance appraisal raters in how to avoid rating errors and increase rating accuracy

360-degree feedback

a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves

job evaluation

a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it

Pay level

whether to pay workers at a level that is below, above, or at current market wages

pay variability

the extent to which employees pay varies with individual and organizational performance

Pay Structure

level of pay for specific employees' work/experience

Piecework

a compensation system in which employees are paid a set rate for each item they produce

commision

a compensation system in which employees earn a percentage of each sale they make

Profit sharing

a compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation

Employee Stock Ownership Plan (ESOP)

a compensation system that awards employees shares of company stock in addition to their regular compensation

Stock options

a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price

hierarchical pay structures

Large differences in pay between jobs or organizational levels; works best when clear links can be drawn between individual performance and individual rewards

compressed pay structures

typically have fewer pay levels and smaller differences in pay between levels; works best for interdependent work

Middle ground

Combining hierarchical and compressed pay structures by giving ordinary workers the chance to earn more through esop, stock options, and profit sharing

wrongful discharge

a legal doctrine that requires employers to have a job-related reason to terminate employees

Downsizing

the planned elimination of jobs in a company

Outplacement services

employment-counseling services offered to employees who are losing their jobs because of downsizing

Early retirement incentive programs (ERIPs)

programs that offer financial benefits to employees to encourage them to retire early

phased retirement

employees transition to retirement by working reduced hours over a period of time before completely retiring

Functional turnover

loss of poor-performing employees who voluntarily choose to leave a company

dysfunctional turnover

loss of high-performing employees who voluntarily choose to leave a company

Leadership

the process of influencing others to achieve group or organizational goals

Trait theory

a leadership theory that holds that effective leaders possess a similar set of traits or characteristics

Traits

relatively stable characteristics, such as abilities, psychological motives, or consistent patterns of behavior

Initiating structure

the degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks

Consideration

the extent to which a leader is friendly, approachable, and supportive and shows concern for employees

Blake Mouton Leadership Grid

An analytical tool to assess leadership style based on the concern for people by concern for production
- impoverished; authority-compliance; middle of the road; team; country club

Impoverished management

exertion of minimum effort to get required work done is appropriate to sustain organization membership

middle of the road management

adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level

Authority-Compliance Management

efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree

Country Club Management

thoughtful attention to the needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo

Team Management

work accomplishment is from committed people; interdependence through a common stake in organization purpose leads to relationships of trust and respect

Contingency theory

a leadership theory states that to maximize work group performance, leaders must be matched to the situation that best fits their leadership style

Assumptions of Fiedler's Contingency Theory

Leaders are effective when their work groups perform well
Leaders are unable to change their leadership styles

situational favorableness

the degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members

leader-member relations

the degree to which followers respect, trust, and like their leaders

task structure

the degree to which the requirements of a subordinate's tasks are clearly specified

position power

the degree to which leaders are able to hire, fire, reward, and punish workers

Situational Theory

leaders need to adjust their leadership styles to match followers' readiness

Performance Readiness

the ability and willingness to take responsibility for directing one's behavior at work

Path-Goal Theory

a leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment

directive leadership

the leader lets employees know precisely what is expected of them, gives them specific guidelines for performing tasks, schedules work, sets standards of performance, and makes sure that people follow standard rules and regulations

Supportive leadership

the leader is friendly and approachable to employees, shows concern for employees and their welfare, treats them as equals, and creates a friendly climate

participative leadership

leader consults employees for their suggestions and input before making decisions

Achievement-oriented leadership

leader sets challenging goals, has high expectations of employees, and displays confidence that employees will assume responsibility and put forth extraordinary effort

Normative decision theory

a theory that suggests how leaders can determine an appropriate amount of employee participation when making decisions (autocratic, consultative, group)

Normative theory decision rules

-quality rule
-leader info rule
-subordinate info rule
-goal congruence rule
-problem structure rule
-commitment probability rule
-subordinate conflict rule
-commitment requirement rule

Visionary leadership

leadership that creates a positive image of the future that motivates organizational members and provides direction for future planning and goal setting

Charismatic leadership

the behavioral tendencies and personal characteristics of leaders that create an exceptionally strong relationship between them and their followers

Transformational leadership

leadership that generates awareness and acceptance of a group's purpose and mission and gets employees to see beyond their own needs and self-interests for the good of the group

Transactional leadership

The leadership based on an exchange process in which followers are rewarded for good performance and punished for poor performance

Motivation

the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal

Initiation of effort

the choices that people make about how much effort to put forth in their jobs

Direction of effort

the choices that people make in deciding where to put forth effort in their jobs

Persistence of effort

the choices that people make about how long they will put forth effort in their jobs before reducing or eliminating those efforts

Job performance

motivation x ability x situational constraints

lower-order needs

concerned with safety and physiological and existence requirements

Higher-order needs

concerned with relationships, challenges and accomplishments, and influence

Extrinsic reward

a reward that is tangible, visible to others, and given to employees contingent on the performance of specific tasks or behaviors

Intrinsic reward

a natural reward associated with performing a task or activity for its own sake

Equity theory

a theory that states that people will be motivated when they perceive that they are being treated fairly

Inputs

in equity theory, the contributions employees make to the organization

Outcomes

in equity theory, the rewards employees receive for their contributions to the organization

Referents

in equity theory, others with whom people compare themselves to determine if they have been treated fairly

Outcome/input ratio

in equity theory, an employee's perception of how the rewards received from an organization compare with the employee's contributions to that organization

Underreward

a form of inequity in which you are getting fewer outcomes relative to inputs than your referent is getting

Overreward

a form of inequity in which you are getting more outcomes relative to inputs than your referent

People who perceive that they have been underrewarded may try to restore equity by:

Reducing inputs
increasing outcomes
rationalizing or distorting inputs or outcomes
changing the referent
leaving

Distributive justice

the perceived degree to which outcomes and rewards are fairly distributed or allocated

Procedural justice

The perceived fairness of the procedures used to make reward allocation decisions

Expectancy Theory

the theory that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards

Valence

the attractiveness or desirability of a reward or outcome

Expectancy

the perceived relationship between effort and performance; transforms intended effort into actual effort

Instrumentality

the perceived relationship between performance and rewards

Valence + instrumentality

Affect employees willingness to put forth effort