Management Chapters 13-17

Terms in this set (36)

a. Interviews: a dialogue initiated by one or more persons to gather information and evaluate the qualifications of an applicant for employment.
b. References: method for getting background information on applicants before an interview.
c. Biological Data: the evidence on the utility of biographical information collected directly from job applicants is more positive. The low cost of collecting the information increases utility.
d. Application Blanks: Commonly used section included in applications that allow applicants to either enter personal information such as address, education, and employment information or to select from a list of option to answer preference, availability, and related questions.
e. Physical Ability Tests: Tests of physical abilities may be relevant not only to predicting performance by to predicting occupational injuries and disabilities as well. There are seven classes of tests in this area: muscular tension, muscular power, muscular endurance, cardiovascular endurance, flexibility, balance, and coordination.
f. Cognitive Ability Tests: tests that include three dimensions: verbal comprehension, quantitative ability, and reasoning ability.
g. Personality Inventories: research suggests that there are five major dimensions of personality, known as the "Big Five": extroversion, adjustment, agreeableness, conscientiousness, and openness to experience.
h. Work Samples: attempt to stimulate the job in a pre-hiring context to observe how the applicant preforms in the simulated job.
i. Honesty Tests: some tests directly emphasize questions dealing with past theft admissions or associations with people who stole from employees.
j. Drug Tests: tests should be conducted in an environment that is as unintrusive as possible, and results should be held in a strict confidence.
a. Comparative: compares performance with others. Helps reduce leniency, central tendency, and strictness.
i. Ranking
1. Simple ranking: ranks employees from highest to lowest performer within their department.
2. Alternation ranking: crosses off best and worst employees.
ii. Forced distribution ranks employees in groups certain percentage goes into each category.
iii. Paired comparison: managers compare every employee with every other employee in work group. Every time the employee gets the 1" best employee"
b. Attribute: focuses on the extent to which individuals have certain attributes (characteristics/traits like initiative, leadership, and competiveness) considered desirable to the company.
i. Graphic rating scales
1. List of traits evaluated by 5-point rating scale.
2. Legally questionable.
ii. Mixed-standard scales
1. Define relevant performance dimensions.
2. Develop statements representing good, average, and poor performance along each dimension.
c. Behavior: attempts to define the behaviors an employee must exhibit to be effective in the job.
i. Critical incidents approach requires managers to keep record of specific examples of effective and ineffective performance.
ii. Behaviorally anchored rating scales (BARS)
1. Consists of a series of vertical scales, one for each dimension of job performance; typically developed by a committee that includes both subordinates and managers.
iii. Behavioral observation scales (BOS)
1. A performance appraisal that measures the frequency of observed behavior (critical incidents).
2. Preferred over BARS for maintaining objectivity, distinguishing good performers from poor performers, providing feedback, and identifying training needs.
iv. Organizational behavior modification is a formal system of behavioral feedback and reinforcement.
v. Assessment centers are multiple raters who evaluate employees' performance on a number of exercises.
d. Results: focuses on managing the objective, measurable results of a job or working group.
i. Management by Objectives
1. Top management passes down company's strategic goals to managers to define goals.
ii. Productivity Measurement and Evaluation System (ProMES)
1. Goal is to motivate employees to higher levels of productivity from a team or company level productivity.
iii. Results-Based Methods
1. Productivity Measures
2. Management By Objectives (MBO)
iv. Productivity Measures
1. Appraisals based on quantitative measures
(e.g., sales volume) that directly link what employees accomplish to results beneficial to the organization.
a. Criterion contamination
b. Focus on short-term results
v. Management by Objectives (MBO)
1. A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.
vi. Managers and employees must be willing to establish goals and objectives together.
vii. Objectives should be quantifiable and measurable for the long and short terms.
viii. Expected results must be under the employee's control and free from criterion contamination.
ix. Goals and objectives must be consistent for each employee level (top executive, manager, and employee).
x. Managers and employees must establish specific times when the goals are to be reviewed and evaluated.
e. Quality: customer orientation. Prevention approach to errors, and continuous improvement=improving customer satisfaction is the primary goal.
i. A (PMS) designed with a strong quality orientation can:
1. Assess both person and system factors in the measurement system.
2. Emphasize managers and employees working together to solve performance problems.
3. Involve both internal and external customers in setting standards and measuring performance.
4. Use multiple sources to evaluate person and system factors.
ii. Sustainability is key element of quality approach.
a. Internal Factors:
i. Compensation strategy of organization
1. Establishes the internal wage relationship among jobs and skill levels
2. Sets organization compensation policy to lead, lag, or match competitors' pay.
3. Rewards employee performance
4. Guides administrative decisions concerning elements of the pay system such as overtime premiums, payment periods, and short-term or long-term incentives.
ii. Worth of Job
1. Establishing the internal wage relationship among jobs and skill levels
iii. Employee's relative worth
1. Rewarding individual employee performance
iv. Employer's ability to pay
1. Having the resources and profits to pay employees.
b. External Factors:
i. Conditions of labor market
1. Availability and quality of potential employees is affected by economic conditions, government regulations and policies, and the presence of unions.
ii. Area pay rates
1. A firm's formal wage structure of rates is influenced by those being paid by other area employers for comparable jobs.
iii. Cost of living
1. Local housing and environmental conditions can cause wide variations in the cost of living for employees.
2. Inflation can require that compensation rates be adjusted upward periodically to help employees maintain their purchasing power.
3. Consumer Price Index (CPI)
a. A Bureau of Labor Statistics measure of the average change in prices over time in a fixed "market basket" of goods and services
iv. Collective bargaining
1. Escalator clauses in labor agreements provide for quarterly upward cost-of-living (COLA) wage adjustments for inflation to protect employees' purchasing power.
2. Unions bargain for real wage increases that raise the standard of living for their members.
3. Real wages are increases larger than rises in the consumer price index; that is, the real earning power of wages.
v. Legal requirements
a. Reinforcement Theory: a response followed by a reward is more likely to recur in the future.
i. In pay-for-performance:
1. When high employee performance is followed by a reward (monetary in the form of bonuses etc. or nonmonetary, such an award), then the behaviors that resulted in the high performance are more likely to recur in the future.
ii. Important element of this theory is the actual experience of the reward as an outcome of high performance
b. Expectancy Theory: Motivation= Expectancy (E) Instrumentality (I) Valence
i. Expectancy: the subjective perception that by exerting effort one can reach a performance goal.
ii. Instrumentality: the belief that an award will be received if a specific goal is met.
iii. Valence: the value that the individual places on the award that he/she will receive if the specific goal is met.
iv. Expectancy Theory: Extrinsic vs Intrinsic Motivation
1. Extrinsic motivation: depends on rewards controlled by the employer (pay and benefits)
2. Intrinsic motivation: depends on rewards stemming from work itself (e.g., having an interesting job)
3. Monetary rewards can reduce to some extent the intrinsic motivation.
4. Both extrinsic and intrinsic motivations are important for performance.
c. Agency Theory:
i. Principals: employers/owners.
1. Their goal is to influence others into engaging in specific behaviors
ii. Agents: employees
1. They might have different interests/goals than those of principals
d. The problem: The employer wants his/her employees to exert effort but employees want to work as little as possible.