BUSI 342 Quiz 4 Study Guide

1. Purposes of Performance Management

·       Definition: Performance management is a system for assessing and improving employee effectiveness, aligning individual performance with organizational goals.

·       Key Purposes:

·       - Provide feedback and coaching to employees.

·       - Identify and support development needs.

·       - Align individual performance goals with company objectives.

·       - Facilitate promotion, compensation, and termination decisions.

2. Traditional Steps of Progressive Discipline

·       Steps in Progressive Discipline:

·       - Verbal Warning: An initial, informal conversation to address issues.

·       - Written Warning: A formal documented warning if issues persist.

·       - Suspension: Temporary leave to emphasize the seriousness of the issue.

·       - Termination: Final step if previous measures fail to correct the behavior.

3. Sandwich Method of Providing Feedback

·       Structure: A feedback technique starting with positive feedback, followed by constructive criticism, and ending with positive reinforcement.

·       Purpose: Designed to make feedback more acceptable, reinforcing positive behaviors while providing constructive insights.

4. Exempt vs. Nonexempt Classification

·       Exempt Employees: Salaried positions not eligible for overtime under FLSA; typically include executive and professional roles.

·       Nonexempt Employees: Eligible for overtime pay; generally paid hourly.

5. Wage Garnishment

·       Definition: A legal procedure in which an employer withholds part of an employee's earnings to pay off a debt.

·       Examples: Can be used for child support, tax debts, and other legal obligations.

6. Expectancy Theory, Equity Theory, and Reinforcement Theory

·       Expectancy Theory: Motivation is driven by the expected outcome; employees are motivated when they believe efforts will lead to desired results.

·       Equity Theory: Focuses on fairness; employees seek a balance between their contributions and rewards compared to others.

·       Reinforcement Theory: Behavior is influenced by its consequences; positive reinforcement encourages desired behaviors.

7. Functions of an Employee Stock Ownership Plan (ESOP)

·       Definition: A program that allows employees to own shares in the company.

·       Functions:

·       - Enhances engagement and loyalty.

·       - Serves as a retirement benefit.

·       - Aligns employee interests with organizational goals.

8. Open Enrollment Period

·       Definition: An annual period when employees can enroll in or make changes to their benefit plans.

·       Purpose: Allows employees to update coverage or enroll without a qualifying life event like marriage or birth.