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performace management - ch10
Chapter 10
26
Management
Undergraduate 4
11/01/2010

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Term
A ______ approach in implementing reward systems is to reward employees for the positions that they fill, not necessarily by how well they do their work.
Definition
traditional pg240
Term
In a _________ pay plan, there is typically a pay range that determines minimum, midpoint, and maximum rates for each job.
Definition
traditional pg240
Term
In a _________ pay plan, individuals are rewarded based on how well they perform on the job.
Definition
contingent pg240
Term
T/F
In a contingent pay plan, increases in pay are based wholly or partly on job performance.
Definition
true pg240
Term
_________ is the tendency for top performers to be attracted to and remain at organizations that have implemented contingency pay plans.
Definition
sorting effect pg241
Term
___________ plans force organizations to define effective performance clearly and to determine what factors are likely to lead to effective performance.
Definition
Contingency pay pg241
Term
Contingency pay plans can improve the motivation of employees when all of the 3 conditions are present:
Definition
1.expectancy
2.instrumentality
3.valence
pg243
Term
_______is when employees value the rewards available.
Definition
valance pg243
Term
________is when an employee sees a clear link between their efforts and the resulting performance.
Definition
expectancy pg243
Term
T/F
Pay can affect only the motivation aspect of performance
Definition
true pg243
Term
1. poor performance management systems in place.
2. rewarding A while hoping for B
3. rewards are not significant
4. managers are not accountable
5. rewards for exec's are disproportionately large compared to rewards for others.
6. extrinsic motivation st the expense of intrinsic motivation
Are all reasons for:
Definition
why contingent pay plans fail pg245
Term
An example of ____________________, is if an organization wants employees to be more entrepreneurial and innovative, but does not reward employees who think creatively.
Definition
rewarding A while hoping for B. pg244
Term
There should be careful consideration of an organization's _______ before a specific CP plan is selected.
Definition
culture pg246
Term
If an organization has a traditional culture __________, ______, or _____ would be examples of good CP systems.
Definition
piece rate
sales commissions
group incentives
pg246
Term
If a company had a involvement culture than ______ or _______ would make good CP systems.
Definition
profit sharing
skill-based pay pg246
Term
______ should also be considered when deciding on a CP plan, since it is a key element in designing a performance management system
Definition
strategy or strategic direction pg246
Term
T/F
If a company was a traditional culture company and their strategic business objective was productivity than piece rate CP plan would be recommended.
Definition
true pg247
Term
T/F
if a company had an involvement culture and wanted to have a strategic business objective that focused around overall profit than a sales commission CP plan would work well.
Definition
false 247
Term
a _____ is something that increases the frequency of an employee action.
Definition
reward pg248
Term
1. define ans measure performance first, than allocate rewards.
2. use only rewards that are available.
3. make sure all employees are eligible.
4. make rewards visible
5. make rewards contingent
6. make rewards timely
7. make rewards reversible
8. use non-financial rewards
are all examples that:
Definition
make rewards work! pg251
Term
T/F Making a reward reversible is recommended so that rewards work well!
Definition
true pg250
Term
An organization's _________ classifies jobs into categories based on their relative worth.
Definition
pay structure pg253
Term
__________ is a process of data collecting through which an organization can understand the worth of various jobs, and as a result, can create a pay structure.
Definition
job evaluation pg 252
Term
The 3 most popular job evaluation methods are:
Definition
ranking
classification
point pg 252
Term
6 important legal principals effecting performance management are:
Definition
employment at will
negligence
defamation
misrepresentation
adverse impact
illegal discrimination
pg256
Term
T/F
an exception to terminating an employee under the employment at will rule is if there is an employee hand book that implies employees are terminated for just cause only, than can not terminate under employment at will.
Definition
true pg 256
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