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2013-03-04 20:18:40
Z440 Exam

Exam 3
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  1. taking an integrated, goal-oriented approach to assigning, training, assessing, and rewarding employee's performance.
    Performance Management
  2. the process
    for enabling employees to better understand and develop their career
    skills and interests, and to use these skills and interests more
    Career management
  3. results
    of a period that may occur at the initial career entry when the new employee’s
    high job expectations confront the reality of a boring, unchallenging job.
    Reality shock
  4. when there is only a small difference in pay between employees regardless of skill or experience
    Salary compression
  5. a fundamental, compensable element of a job,
    such as skills, effort, responsibility, and working conditions.
    Compensable factor
  6. shows
    the relationship between the value of the job and the average wage paid for
    this job.
    Wage curve
  7. the
    concept by which women who are usually paid less than men can claim that men in
    comparable rather than in strictly equal jobs are paid more.
    Comparable worth
  8. a
    system of pay based on the number of items processed by each individual worker
    in a unit of time, such as items per hour or items per day.
  9. an
    incentive plan that engages employees in a common effort to achieve
    productivity objectives and share the gains.
  10. a
    payment companies make in connection with a change in ownership or control of a
    Golden parachute
  11. consolidating
    salary grades and ranges into just a few wide levels or “bands,” each of which
    contains a relatively wide range of jobs and salary levels.
  12. Each
    employee is given a benefits fund budget to spend on the benefits he or she
    prefers. The fund limits the total cost for each benefits package.
    Cafeteria benefits
  13. Why is it important
    to appraise performance?
    • 1. employers base pay, promotion, and retention on PAs
    • 2. play a central role in performance mgmt
    • 3. plan to correct prob. & praise good
    • 4. facilitate career planning
    • 5. identifies employee training & devlpment needs
  14. SMART gooals
    • Specific –
    • clearly state the desired results
    • Measurable –
    • answer the questions “how much?”
    • Attainable
    • Relevant –
    • clearly derived from what the manager and company want to achieve
    • Timely –
    • reflect deadlines and milestones
  15. What roles does HR
    play in the performance appraisal process
    • -policy making and advising
    • provide advice and appraisal tool
    • must train supervisors on how to improve appraisal skills
    • monitor appraisal system's effectiveness
  16. a
    scale that lists a number of traits and a range of performance for each. The
    employee is then rated by identifying the score that best describes his or her
    level of performance for each trait.
    Graphic Rating scale
  17. ranking
    employees from best to worst on a particular trait, choosing highest, then lowest,
    until all are ranked.
    Alternative ranking method
  18. ranking
    employees by making a chart of all possible pairs of the employees for each
    trait and indicating which is the better employee of the pair.
    Paired comparison method
  19. similar
    to grading on a curve; predetermined percentages of rates are placed in various
    performance categories
    Forced distribution method
  20. keeping
    a record of uncommonly good or undesirable examples of an employee’s
    work-related behavior and reviewing it with the employee at predetermined
    Critical incident method
  21. an
    appraisal method that aims at combing the benefits of narrative critical
    incidents and quantified ratings by anchoring a quantified scale with specific
    narrative examples of good and poor performance.
    Behaviorally anchored rating scale (BARS)
  22. having
    supervisors electronically monitor the amount of computerized data an employee
    is processing per day, and thereby his or her performance.
    Electronic performance monitoring (EPM)
  23. What are the steps in
    creating a BARS?
    • 1. write critical incidents
    • 2. develop performance dimensions
    • 3. reallocate incidents
    • 4. scale the incidents
    • 5. develop a final instrument
  24. Advantages of
    • 1. more accurate gauge
    • 2. clearer standards
    • 3. feedback
    • 4. independent dimensions
    • 5. consistency
  25. an
    appraisal that is too open to interpretation
    Unclear standards
  26. in
    performance appraisal, the problem that occurs when a supervisor’s rating
    of a subordinate on one trait biases the rating of that person on other
    Halo effect
  27. a tendency to
    rate all employees the same way, such as rating them all average
    Central tendency
  28. the problem that occurs when a supervisor has
    a tendency to rate all subordinates either high or low.
  29. Understand the
    employment life-cycle and the stages employees go through
    • Growth stage
    • Exploration
    • stage
    • Establishment
    • stage
    • Trial
    • substage
    • Stabilization
    • substage
    • Midcareer
    • crisis substage
    • Maintenance
    • Stage
    • Decline Stage
  30. Pay in the form of wages, salaries,
    incentives, commissions, and bonuses.
    Direct financial payments
  31. Pay in the form of financial benefits such
    as insurance.
    Indirect financial payments
  32. a
    law that sets wage rates for laborers employed by contractors working for the
    federal government.
    Davis-Bacon Act
  33. a
    law that requires minimum wage and working conditions for employees working on
    any government contract amounting to more than $10,000.
    Walsh-Healey Public Contract Act
  34. this act makes it unlawful for employers to
    discriminate against any individual with respect to hiring, compensation,
    terms, conditions, or privileges of employment because of race, color,
    religion, sex, or national origin.
    Title VII of the 1964 Civil Rights Act
  35. the
    act provides for minimum wages, maximum hours, overtime pay, and child labor
    protection. The law, amended many times, covers most employees.
    Fair Labor Standards Act
  36. an
    amendment to the Fair Standards Act designed to require equal pay for women
    doing the same work as men.
    Equal Pay Act
  37. the
    law that provides government protection of pensions for all employees with
    company pension plans. It also regulates vesting rights (employees who leave
    before retirement may claim compensation from the pension plan).
    Employee Retirement Income Security Act (ERISA)
  38. Prohibits
    age discrimination against employees who are 40 years of age and older in all
    aspects of employment, including compensation.
    The Age Discrimination in Employment Act
  39. Prohibits
    discrimination against qualified persons with disabilities in all aspects of
    employment, including compensation.
    The Americans with Disabilities Act
  40. Entitles
    eligible employees, both men and women, to take up to 12 weeks of unpaid,
    job-protected leave for the birth of a child or for the care of a child,
    spouse, or parent.
    The Family and Medical Leave Act
  41. States
    that if a person perceives an inequity, the person will be motivated to reduce
    or eliminate the tension and perceived inequity.
    The equity theory of motivation
  42. refers
    to how a job’s pay rate in one company compares to the job’s pay rate in other
    • External
    • equity
  43. refers
    to how fair the job’s pay rate is when compared to other jobs within the same
    company (for instance, is the sales manager’s pay fair, when compared to what
    the production manager is earning?)
    • Internal
    • equity
  44. refers
    to the fairness of an individual’s pay as compared to with his or her coworkers
    are earning for the same or very similar jobs within the company, based on each
    individual’s performance.
    • Individual
    • equity
  45. refers
    to the “perceived fairness of the processes and procedures used to make
    decisions regarding the allocation of pay.”
    • Procedural
    • Equity
  46. Methods to
    Address Equity Issues
    • i.     
    • Salary surveys

    To monitor and maintain external equity.

    • ii.     
    • Job analysis and job evaluation

    To maintain internal equity,

    • iii.     
    • Performance appraisal and incentive pay

    To maintain individual equity.

    • iv.     
    • Communications, grievance mechanisms, and employees’
    • participation

    • To help ensure that employees view the pay
    • process as transparent and fair. (Procedural equity).
  47. the
    simplest method of job evaluation that involves ranking each job relative to
    all other jobs, usually based on overall difficulty.
    Ranking method
  48. a
    method for categorizing jobs into groups.
    Job classification method
  49. the
    job evaluation method in which a number of compensable factors are identified
    and then the degree to which each of these factors is present on the job is
    Point method
  50. Abraham Maslow’s Hierarchy of Needs
    • a.       
    • physiological
    • (food, water, sex)

    • b.      
    • security
    • (a safe environment)

    • c.       
    • social
    • (relationships with others)

    • d.      
    • self-esteem
    • (a sense of personal worth)

    • e.      
    • self-actualization
    • (becoming the desired self)
  51. a.       
    working conditions, salary, and incentive pay can cause dissatisfaction and
    prevent satisfaction.
    • 1.       Hygienes (extrinsic
    • job factors)
  52. a.       
    enrichment (challenging job, feedback and recognition) addresses higher-level
    (achievement, self-actualization) needs.
    • 1.       Motivators
    • (intrinsic job factors)
  53. How can managers reinforce positive behavior
    without using cash? What can they use on a day-to-day basis?
    • Make sure the employee has a doable
    • goal
  54. Recognizing an employee’s
    • contribution
    • Social recognition
  55. the
    executive receives his or her shares only if he or she meets the preset
    performance targets.
    • Performance-contingent
    • restricted stock
  56. the
    firm usually awards rights to the shares without cost to the executive but the
    employee is restricted from acquiring (and selling) the shares for, say , 5
    years. The employer’s aim is to retain the employee’s service during that time.
    • Restricted
    • stock plans
  57. the
    option’s exercise price fluctuates with the performance, of, say, a market
    index. Then, if the company’s stock does no better than the index, the manger’s
    options are worthless.
    • Indexed
    • options
  58. the
    exercise price is higher than the stock’s closing price on the date of the
    grant, so the executive can’t profit from the options until the stock makes
    significant gains.
    • Premium
    • prices options
  59. executives
    receive not shares but “units” that are similar to shares of company stock.
    Then at some future time, they receive value (usually in cash) equal to the
    appreciation of the “phantom” stock they own.
    • Phantom
    • stock plans
  60. awards
    shares of stock for achievement of predetermined financial targets, such as
    profit or growth in earnings per share.
    • Performance
    • achievement plan
  61. created government-run, employer-financed
    corporations to protect employees against the failure of their employers
    pension plans. It regulates vesting rights, which is the ownership that an
    employee builds up as they buy into the company (outback example from class)
    and what to do with it if they leave before retirement. It also regulates
    portability rights, which is the right to transfer benefits from one company to
    another if you leave. Finally, it sets standards to help prevent dishonesty in
    pension planning.
    Employee Retirement Income Security Act (ERISA)
  62. gives workers and their families who lose their
    health benefits the right to choose to continue group health benefits provided
    by their group health plan for limited periods of time under certain
    circumstances such as voluntary or involuntary job loss, reduction in the hours
    worked, transition between jobs, death, divorce, and other life events.
    Qualified individuals may be required to pay the entire premium for coverage up
    to 102 percent of the cost to the plan.
  63. which protects the privacy of individually
    identifiable health information; the HIPAA Security Rule, which sets national
    standards for the security of electronic protected health information; and the
    confidentiality provisions of the Patient Safety Rule, which protect
    identifiable information being used to analyze patient safety events and
    improve patient safety.
    Health Insurance Portability Accountability Act
  64. makes it so that both men and women can take up
    to 12 weeks unpaid leave, job-protected leave for the birth of a child, taking
    care of a child, spouse, or parent. You can actually 26 weeks if you are caring
    for a recently returned soldier.
    Family Medical Leave Act (FMLA)
  65. was signed into law on September 26, 1996. MHPA
    provides for parity in the application of aggregate lifetime and annual dollar
    limits on mental health benefits with dollar limits on medical/surgical
    benefits. MHPA's provisions are subject to concurrent jurisdiction by the
    Departments of Labor, the Treasury, and Health and Human Services.
    The Mental Health Parity Act (MHPA)
  66. signed into law on October 21, 1998, includes
    important protections for individuals who elect breast reconstruction in
    connection with a mastectomy. WHCRA amended the Employee Retirement Income
    Security Act of 1974 (ERISA) and the Public Health Service Act (PHS Act) and is
    administered by the Departments of Labor and Health and Human Services.
    The Women's Health and Cancer Rights Act (WHCRA)
  67. is common to all states. States provide it when
    an employee is unable to work through no
    fault of their own. Not everyone that is dismissed is eligible for
    unemployment insurance. So if you were fired for poor performance, quit, or are
    always late, then sorry.
    Unemployment Insurance
  68. provides prompt income and medical benefits to
    work-related victims or their relatives regardless
    of fault. Every state has different laws. Neither State nor Federal
    governments contribute money to worker’s compensation.
    Worker’s Compensation
  69. help reduce health care costs by negotiating
    aggressively with health care providers. Usually they start tracking key health
    care costs.
    Cost-Containment Specialists
  70. look at prevention as a key way to lowering
    costs. For example non-smokers usually get discounts on premiums.
    Wellness programs
  71. means being proactive about seeking out
    erroneous claims. So when you say you’re a non-smoker and you get caught
    smoking by the company, you just got audited.
    Claim audits
  72. make sure that the employees don’t really have
    expensive choices in health care.
    Limited plans
  73. is fairly straight forward. The employee
    contributes money towards their retirement.
  74. is again fairly straight forward. The
    organization makes all contributions in this type of plan. They get tax credits
    for doing this.
  75. means that the pension program meets certain
    qualifications through the IRS and thus gets certain tax credits through the
  76. means that they don’t get the preferential
    treatment for tax purposes
  77. means that your benefit package is defined ahead
    of time. It is usually a formula and you know from day one what you will get if
    you work a certain period of time. These make up a minority of pension plans.
    Defined Benefit
  78. is the kind of combo plan of contributory. This
    is where both the employee and the employer make contributions to the pension
    plan. You only know what contributions you are making not what you’re actual
    pension will be. You make money off of these plans because the company takes
    your contribution and their contribution and invests it into other places.
    Defined Contributory