forms of pay linked to an employee’s performance as an individual, group member, or organization member

1. Discuss the connection between incentive pay and employee performance

•          Incentive pay is influential because the amount paid is linked to certain predefined behaviors or outcomes

•          For incentive pay to motivate employees to contribute to the organization’s success, the pay plans must be well designed

•          Can be paid at different levels, whether individuals, teams, departments or even based on the well being of the company as a whole. 

•          Individual performance:  based on performance of a single individual

Group performance:   based on performance of a work group or team

•          Organizational performance:  based on the company’s overall performance

1. Describe how organizations recognize individual performance (12)

•          Choices for these categories should consider their strengths and weaknesses and also their fit with the organization.  There is evidence that

•          Team-based rewards tend to attract employees who are more team-oriented

•          Rewards tied to individual performance make an organization more attractive to those who think and act independently as individuals 

wage based on the amount workers produce

Can cause workers to overlook quality in order to produce more

an incentive plan that pays workers extra for work done in less than a preset "standard time"

•          These plans are much like piecework plans

•          They encourage employees to work as fast as they can, but not necessarily to care about quality or service

•          a system of linking pay increases to ratings on a performance scale

•          They make use of a merit increase grid

•          The system gives the lowest paid best performers the biggest pay increases

•          bonuses for individual performance can be extremely effective and give the organization great flexibility in deciding what kinds of behavior to reward

•          Performance bonuses are not rolled into base pay

•          The employee must re-earn them during each performance period

•          Sometimes the bonus is a one-time reward

•          Bonuses may also be linked to objective performance measures, rather than subjective ratings

•          incentive pay calculated as a percentage of sales

•          Some salespeople earn a commission in addition to a base salary

Salespeople who only earn commission

On the other hand, some people earn no commission, just salary.

group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each to employees

•          Gainsharing addresses the challenge of identifying appropriate performance measures for complex jobs

•          Gainsharing frees employees to determine how to improve their own and their group’s performance

•          Org Conditions Necessary for Gainsharing to Succeed (12)

 Management commitment

Need for change or strong commitment to continuous improvement

Management acceptance and encouragement of employee input

High levels of cooperation and interaction

Employment security

Information sharing on productivity and costs

Goal setting

Commitment of all involved parties to the process of change and improvement

Performance standard and calculation that employees understand and consider fair and that is closely related to managerial objectives

Employees who value working in groups

•          :  bonuses for group performance for smaller work groups

•          These bonuses reward the members of a group for attaining a specific goal, usually measured in terms of physical output

 Similar to group bonuses, but are more likely to use a broad range of performance measures:

•          Cost savings

•          Successful completion of a project

•          Meeting deadlines

•          incentive pay in which payments are a percentage of the organization’s profits and do not become part of the employees’ base salary

•          Profit sharing may encourage employees to think like owners

•          Evidence is not clear whether profit sharing helps organizations perform better

•          Considerations for Setting Up a Profit-Sharing Plan

1.Get supervisors on board with the plan

2.Make  sure employees understand how the plan works

3.Identify the behaviors and results that contribute to greater profits

4.Make sure managers understand that they contribute to the profit-sharing goals by encouraging their employees and keeping them focused on their goals

5.Consider linking rewards to the department’s or division’s performance, if profits can be assigned to the group

6.Make the rewards big enough to matter

7.Time the profit-sharing payments for maximum effect

Rights to buy a certain number of shares of stock at a specified price

•          Traditionally, stock options have been granted to executives

•          Some companies are trying to push eligibility for options further down the organization’s structure

•          New accounting rules (2005+) mandate that options are expensed

•          Many companies reducing use of options and replacing them with stock grants 

an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust

•          This is the most common form of employee ownership

a combination of performance measures directed toward the company’s long- and short-term goals and used as the basis for awarding incentive pay

•          Combines the advantages of different incentive pay plans

•          Helps employees understand the organization’s goals

•          The four categories of a balanced scorecard include:

•          Financial

•          Customer

•          Internal

•          Learning and growth

•          By communicating the balanced scorecard to employees, the organization shows employees information about what its goals are and what it expects employees to accomplish

  Participation in decisions

Employee participation in pay-related decisions can be part of a general move toward employee empowerment

Employee participation can contribute to the success of an incentive plan

Communication

Communication demonstrates to employees that the pay plan is fair

When employees understand the requirements of the incentive pay plan, the plan is more likely to influence their behavior as desired

Important when the pay plan is being changed

bonuses based on the year’s profits, return on investment, or other measures related to the organization’s goals

Actual payment of the bonus may be delayed to gain tax advantages

Include stock options and stock purchase plans

•          •Rationale for these long-term incentives is that executives will want to do what is best for the organization because that will cause the value of their stock to grow

Compensation in forms other than cash

Benefits contribute to attracting, retaingi, and motivating employees

Benefits packages are more complex than pay structures, making them harder for employees to understand and appreciate

The important role of benefits is one reason that benefits to government regulation

Legally required benefits

Tax laws can make benefits favorable

Social Security: eligible persons receive retirement benefits according to their age and earning history

Unemployment Insurance: a federally mandated program to offset the hardships of unemployment

Workers compensation insurance: State programs that provide benefits to workers who suffer work-related injuries or illness, or to their survivors

Family and Medical Leave (FMLA) Federal law requiring organizations to promote up to 12 weeks of unpaid leave for childbirth, adoption, or serious illness

the federal Old Age, Survivors, Disability and Health Insurance program

Also includes hospital insurance (Medicare Part A)

and Supplementary medical insurance (Medicare part B)

Taxes both the employeer and the employee

Covers over 90% of US employees

Federall mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs and incentives to stabilize employment

Employers and employees pay.

Employers pay is based on experience rating

the number of employees a company has laid off in the past and the cost of providing them with unemployment benefits

Careful HR planning can minimize layoffs and keep their experience rating favorable. 

State programs that provide benefits to workers who suffer work-related injuries or illness, or to their survivors. Major categories include:

Disability income

Medical care

Death benefits

Rehab benefits

Operate under a no fault liability - worker does not need to show the employer is grossly at fault, and employer is protected from lawsuits

Federal law requiring organizations to provide up to 12 weeks of unpaid leave after childbirth or adoption, to care for a seriously ill family member or for an employees own serious illness

Coverage: Employers with 50 or more employees within a 75-mile radius

Requirements: employee must allow eligible employees to take up to a total of 12 weeks unpaid leave within a 12 month period.

Vacation: typically 2 weeks per year

Holidays - Typically 10 days or fewer

Floating holidays: paid holidays that vary from year to year

Sick Leave: Pay for days not worked due to illnesses

Flexible approaches

Personal days: days off that employees may schedule according to their personal needs

Paid time off: employer pools personal days, sick days, and vacation days for employees to use as the need or desire arises

Leave without pay: leave of absence to pursue nonwork goals or to meet family needs

federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months  following a qualifying event:
Termination (except for gross misconduct)
Layoff
Reduction in hours
Employee’s death
To extend the coverage, the employee or the surviving spouse or dependent must pay for the insurance, but at the group rate

a health care plan that required patients to receive their medial care from the HMO’s health care professionals, who are often paid a flat salary and provides all services on a prepaid basis. Generally costs less. But sometimes patients feel like they don’t have the access to the type of medical attention they feel that they might need. 

1.  
   1. a health care plan that contracts with health care professionals to provide services at a reduced fee and given patients incentives to use network providers. 

1.  
   1. employee-controlled pretax earnings set aside to pay for certain eligible expenses such as health care expenses during the same year (anything unspent will just go back to the ER. Good for predictable health expenses)  

1.  
   1. a set of communications, activities and facilities designed to change health-related behaviors in ways that reduce health risks. (Broad range for goal: healthier employees means they’ll use fewer medical costs 

if the employee dies during the term of the policy, the employee’s beneficiaries receive a death benefit payment
•Usually twice the employee’s yearly pay

1.  
   1. :  provides protection against the loss of income due to disability which makes employee unable to work
      1. •Short-term disability insurance:  insurance that pays a percentage of a disabled employee’s salary as benefits to the employee for six months or less
      2. •Long-term disability insurance:  insurance that pays a percentage of a disabled employee’s salary after an initial period and potentially for the rest of the employee’s life
      3. •Disability payments are a percentage of the employee’s salary – typically 50-70 percent 

1.  
   1.  
      1. retirement plan funded by contributions from both the employer and employee (most common) 

Pension plan that guarantees a specified level of retirement income.  Employer sets up a pension fund to invest the contributions (Puts more risk to employer) 

1.  
   1.  
      1. federal law that increased the responsibility of pension plan trustees to protect retirees, established rights related to vesting and portability
         1. •The employer must contribute enough for the plan to cover all the benefits to be paid out to retirees

Earning a right to receive the pension. Must be in the program/ in the company for a minimum amount of years. If you are able to earn vesting, you will be guaranteed to receive retirement.

1.  
   1.  
      1. being able to move retirement savings when changing employers

federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties (If ER goes bankrupt, they will still have to pay you retirement) 

retirement plan in which an employer sets up an individual account for each employee and specifies the size of the investment into that account

•Money purchase plan
•Profit-sharing and ESOP plans
•401K plans (matching programs)
•These plans free employers from the risks that investments will not perform as well as expected
•The responsibility for wise investing is with each employee 

1.  
   1. retirement plan in which an employer sets up an individual account for each employee and contributes a percentage of the employees salary; the account earns interest at a predefined rate

1.  
   1.  
      1. •Vesting rights:  guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer
      2. •Summary Plan Description (SPD):  a report that describes a pension plan’s funding, eligibility requirements, risks and other details
         1. •Employers also provide an individual benefit statement which describes the employee’s vested and unvested benefits

Decisions about which benefits to include should take into account:
The organization’s goals
The organization’s budget
The needs and expectations of the current and future employees

•An organization that does not offer expected benefits will have difficulty attracting and keeping employees

a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want
•Advantages include:
Employees become more aware of the value of the benefits
Employees can match their needs to the benefits
Avoids the cost of non-valued benefits

Organizations must communicate benefits information to employees so they will appreciate the value of their benefits
•Communication is essential so that the benefits can achieve their objective of attracting, motivating, and retaining employees
•An investment of creativity in employee communication can reap great rewards in the form of committed, satisfied employees
•Employees are interested in their benefits, and they need a great deal of detailed information to take advantage of benefits

1. Define human resource management and explain how HRM contributes to an organization’s performance (1)

1.  
   1. HRM: the policies, practices, & systems that influence employees’ behavior, attitudes, & performance.
   2. Managers & economists have traditionally seen HRM as a necessary expense, rather than a source of value to the org.
   3. Based on the need to retain & expand their potential of an org’s human capital HRM as a field has grown & become much more strategic in nature.
   4. At companies w/effective HRM: employees & customers tend to be more satisfied, the company also tends to be more innovative, have greater productivity, & develop a more favorable reputation in the community. 

1.  
   1. Human Relations Skills: the ability to understand & work well with other people is important to virtually any career, but human relations skills are especially significant for human resource management today.
   2. Decision-Making Skills: HR managers must make a wide variety of decisions that affect whether employees are qualified & motivated & whether the org is operating efficiently & complying with the law.
   3. Leadership Skills: HR Managers need to play a leadership role with regard to the orgs HR. In today’s environment, leadership often requires helping the org manage change.
   4. Technical Skills: professionals need knowledge of state-of-the-art practices in such areas as staffing, development, rewards, orgl design, & communication

individuals who are actively seeking employment

 The # and kinds of people in the external labor market determine the kinds of HR avb. To an org. 

an org’s workers – its employees & the people who have contracts to work at the org.

1.  
   1.  
      1.  
         1. Direct Employees already in the org.
         2. Derived from it’s external labor market

1.  
   1.  
      1.  
         1.  
            1. an aging workforce: workers 55 + and older will be the fastest-growing age group. The 25-44 year old group will incr. its #’s slightly, so its share of the total workforce will fall, & Young workers between the ages of 16 & 24 will actually be fewer in #.
            2. Implications of the Aging Workforce: HR pro’s will spend much of their time on concerns related to retirement planning, retraining older workers, & motivating workers whose careers have reached a plateau; Orgs will struggle with ways to control the rising costs of health care & other benefits; Many of tomorrow’s managers will supervise employees much older than themselves; Orgs will have to find a way to attract, retain, & prepare the youth labor force.
            3. diverse workforce: orgs must recruit from a diverse population, establish bias-free HR systems, & help employees understand & appreciate cultural differences. 

a computer system used to acquire, store, manipulate, analyze, retrieve, & distribute info related to HR. an HRIS can:

1.  
   1.  
      1.  
         1. Support strategic decision making
         2. Help the org avoid lawsuits
         3. Provide data for evaluating programs or policies
         4. Support day-to-day HR decisions

Changes in the Employment Relationship

1.  
   1.  
      1. Technology & the other trends described require managers at all levels to make rapid changes in response to new opportunities, competitive challenges, & customer demands.
      2. These changes are most likely to succeed in flexible, forward thinking orgs, & the employees who will thrive in such an environment need to be flexible & open to change as well.
      3. Employers & employees have begun to reshape the employment relationship: 
      4. psychological contract: a description of what an employee expects to contribute in an employment relationship & what the employer will provide the employee in exchange for those contributions. 

1.  
   1.  
      1. : a description of what an employee expects to contribute in an employment relationship & what the employer will provide the employee in exchange for those contributions.
         1. Today: employers provide competitive compensation & benefits, career development opportunities & flexibility to balance work & home life. Employees contribute continuous skill improvement, reasonable time with the org and extra effort when needed.
         2. Factors Affecting Psychological Contract: Age of employee & changes in economic conditions; Competitive environment, org restructuring, mergers, acquisitions, layoffs, & longer hours; One’s personal situation & needs; Realistic job preview can really help shape the psychological contract because it provides info about what the job is really like. 

1. Define employee empowerment and explain its role in the modern organization

1.  
   1. Employee Empowerment: giving employees responsibility & authority to make decisions regarding all aspects of product development or customer service.

1.  
   1. Provides equal protection for all citizens & requires due process in state action; covers state actions, enforced by courts; Bakey vs. State of CA – white are protected against reverse discrimination. 

1.  
   1. : allowed for victims of intentional discrimination to be awarded compensatory & punitive damages. 

1.  
   1. outlaws discrimination in employment decisions based on a person’s age being over 40 whether intentional or not. Includes hiring, firing, setting compensation rates or other employment decisions. 

1.  
   1. an org’s active effort to find opportunities to hire or promte people in a particular group. 

1.  
   1. protects individuals with disabilities from being discriminated against in the workplace.
      1. Disability: a physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment, or being regarded as having such an impairment. 

1.  
   1. responsible for enforcing most of the EEO laws (incl. Tile VII, the Equal Pay Act & THE ADA); Created by the CRA of 1964; Receives & investigates complaints, Issues Guidelines
      1. EEO-1 Report: the EEOC’s Employer Information Report, which counts employees sorted by job category, sex, ethnicity & race.
      2. Office of Federal Contract Compliance (OFCCP): the agency responsible for enforcing the executive orders that cover companies doing business w/the federal govt.  (Ensures companies have an Affirmative Action plan which includes utilization analysis, goals & timetable & action steps. 

Ways employers can avoid illegal discrimination and provide reasonable accommodation

Dispareate Treatment

BFOQ (Bono Fide Occupational Qualification 

Disparate Impact

Four-fifths rule

1.  
   1. Disparate Treatment: differing treatment of individuals, where the differences are based on the individuals’ race, color, religion, sex, national origin, age, or disability status.
   2. BFOQ (Bono Fide Occupational Qualification): a necessary qualification for performing a job (not preferred)
   3. Disparate Impact: a condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities.
   4. Four-Fifths Rule: Rule of thumb that finds evidence of discrimination if an org’s hiring rate for a minority group is less than four-fifths the hiring rate of the majority group. 

Job analysis

Job description

Job specification 

1.  
   1. the process of getting detailed info about jobs. Includes the preparation of job descriptions & job specs:
   2.  focuses on the activities involved in carrying out a job; what the job holder does & how they do it.
   3.  looks at the qualities or requirements the person performing the job must possess (Knowledge, abilities & skills required)

1.  
   1.  
      1. ): standardized job analysis questionnaire with 27 job dimensions and 194 questions about work behaviors, work conditions, & job characteristics that apply to a wide variety of jobs. Questionnaire organizes 6 sections concerning different aspects of the job: Information Input, Mental processes, Work output, Relationships with other persons, Job Context, & others. 

Managing a surplus

Downsizing

Early Retirement Programs

1.  
   1.  
      1.  planned elimination of large numbers of personnel with the goal of enhancing the org’s competitiveness. Reasons: reducing costs, replacing labor with technology, mergers & acquisitions, moving to more economical locations
      2. programs that encourage older workers to leave voluntarily. 

Managing a shortage

Overtime and Expanded Hours

Employing Temp/Contract Workers 

Outsourcing 

Overtime and Expanded Hours

Employing Temp/Contract Workers 

Outsourcing 

1.  
   1.  
      1.  easiest & most widely used. But employees get burned out (physically & mentally exhausting) Good only for short term.
      2. provides flexibility & lowers costs.
      3. contracting with another org to perform a broad set of services, Guidelines for success:
         1. Look for experienced providers w/adequate resources
         2. Do not outsource work that is proprietary or requires tight security
         3. Start small & monitor the work closely
         4. Look for opportunities in areas that promote growth

Sources of job applicants

Internal sources

1.  
   1. employees who currently hold other positions in the org.
      1. Encourages people within the company to move up & get more involved in the org.
      2. We already know what these personalities are like, how well they fit in the culture, faster to transfer.
      3. May create a “back-fill” if someone is promoted to a different job.
      4. Job Posting: the process of communicating info about a job vacancy on company bulletin boards, in employee publications, on corporate intranets, & anywhere else the org communicates w/employees.
      5. 1 in 3 positions are filled with insiders.
      6. Want to encourage people to move up in the org but you also want new people for new ideas. 

1.  
   1. : if org has no internal recruits or to bring in outsiders for new ideas or new ways of doing business
      1. Direct Applicants: people who apply for a vacancy without prompting from the org
         1. (“self-selection”) people who just apply whether or not there is a vacancy. They are already sold on the company
      2. Referrals: people who apply for a vacancy because someone in the org prompted them to do so.
         1. Nepotism: the practice of hiring relatives (if we hire from referrals often, we tend to create a homogeneous type of environment, lost diversity) 

1. Summarize the government’s requirements for employee selection (6)

1.  
   1. Orgs should create a selection process in support of its job descriptions
   2. Selection process should be set up in a way that it lets the org ID people who have the necessary KSAO’s
   3. Requires effective measures
      1. Method requires reliable info
   4. Method provides Valid info

The extent to which a type of measurement is free from random error

Generates consistent results

A measure of validity based on showing a substantial correlation between test scores and job performance 

Most respected approach to validation because a clear, statical relationship is developed between the measure and job performance.

Research that consists of administering a test to people who currently hold a job, then compares their scores to existing measures of job performance

Requires incumbents to take the assessment and then job performance is collected right away

Consistency between the test items or problems and the kinds of situations or problems that occur on the job

Most appropriate for interviews, as it exposes the test taker of things must likely to happen on the job

Consistency betwwn a high score on a test and a high level of construct, as well as between the mastery of this construct and successful performance on the job.

Leadership ability, measures abstract qualities.

Valid in other contexts beyond the context in which the selection method was developed

Tests of intelligence and thinking skills (cognitive abilities) can be generalized

The extent to which something provides economic value greater than its cost

Selection procedures such as testing and interviews cost money - they should cost much less than the benefits of hiring the new employee

All selection methods must conform to the existing laws and legal precedents 

Civil Rights Act of 1964 and 1991

Age Duscrunubatuib in Employment

Americans with Disabilities Act

1.  
   1. The interviewer has great discretion in choosing questions to ask each candidate.
   2. Takes a direction of it’s own, interviewer can ask anything legal.
   3. Not that great, you can get off on a tangent or not job related so you can’t compare applicants, not valid. 

1.  
   1. Consists of a predetermined set of questions for the interviewer to ask
   2. •Can get consistent responses

1.  
   1. A structured interview in which the interviewer describes a situation likely to arise on the job, then asks the candidate what he or she would do in that situation
   2. Any one can answer, can indicate natural ideas of the situation, may have high validity. BUT might not be linked to job performance. 

1.  
   1.  A structured interview in which the interviewer asks the candidate to describe how he or she handled a type of situation in the past
   2. •Describes an actual experience the applicant have had. Tends to have high validity. But it’s whether or not they actually did it or not. 

1.  
   1. several members of the organization meet to interview each candidate
   2. Be prepared 
   3. Assign responsibilities
   4. Put the applicant at ease
   5. Ask about past behaviors
   6. Figure out what your employees do, and ask questions that look for similar behaviors
   7. At the end of the interview, make sure the candidate knows what to expect next 

1.  
   1. The process for determining the appropriateness of training by evaluating the characteristics of the organization
   2. •The organization analysis looks at training needs in the light of:
   3. The organization’s strategy
   4. Resources available for training
   5. Management’s support for training activities
   6. Training needs vary depending on whether the organization’s strategy is
   7. Based on growing or shrinking
   8. If in growth mode, develop new products/services
   9. Shrinking, it’s hard to justify. Do you want to spend a lot of money on training right now or not?
   10. Expanding to serve a broad customer base
   11. Focusing on the specific needs of a narrow market segment

A process for determining individuals’ needs and readiness for training

•Require additional knowledge and skills

•Willing and able to learn

•The primary variables that can influence performance include:

•Person’s ability and skills

•His or her attitudes and motivation

•Organization’s input

•Performance feedback

•Positive consequences to motivate good performance 

Process of identifying and analyzing tasks to be trained for

•Usually conducted along with person analysis

•For each task, must identify the knowledge, skills and abilities required to perform the tasks

•Training is most needed for tasks that are important, frequent and at least moderately difficult

•To carry out the task analysis, the conditions in which tasks are performed are looked at:

•The equipment and environment of the job

•Time constraints

•Safety considerations

•Performance standards

1.  
   1. :  good when presenting a specific topic to many trainees – one of least expensive and least time consuming

1.  
   1. :  trainees at different locations attend programs over phone and computer lines

1.  
   1. computer applications that provide access to skills training, information and expert advice when a problem occurs on the job 

1.  
   1. training methods in which a person with job experience and skill guides trainees in practicing job skills at the workplace
   2. •To be effective, organization should
   3. •Issue a policy statement describing the purpose of OJT and emphasizing the organization’s support for it
   4. •Specify who is accountable for conducting OJT
   5. •Review OJT practices at companies in similar industries
   6. •Managers and peers should be trained on OJT principles
   7. •Knowing how to train OJT will be helpful, maybe explain what you’re doing before you’re doing
   8. •Employees who conduct OJT should have access to lesson plans, checklists, procedure manuals, training manuals, learning contracts and progress report forms
   9. •Before conducting OJT with an employee, the organization should assess the employee’s level of basic skills 

1.  
   1. :  a work-study training method that teaches job skills through a combination of on-the-job training and classroom training
   2. •Typically more trade-type jobs, trade-schools, community college, hands on learning        

1.  
   1. :  on-the-job learning sponsored by an educational institution as a component of an academic program
   2. •Tends to be paid, get to know the company, co gets to know you, you may already have a foot in the door as soon as you graduate,  

1.  
   1. used to develop employees’ management skills;  requires that participants come together to discuss or progress the game

1.  
   1. a teamwork and leadership training programs based on the use of challenging, structured physical activities 

Cross Training

Coordination Training 

Team Leader Training

Action Learning

1.  
   1.  
      1. •Cross training:  team training in which team members understand and practice each other’s skills so that they are prepared to step in and take another members place
      2. •Coordination training:  team training that teaches the team how to share information and make decisions to obtain the best team performance
      3. •Team leader training:  training in the skills necessary for effectively leading the organization’s teams
      4. •Action learning:  training in which teams get an actual program, work on solving and commit to an action plan, and are accountable for carrying it out

1.  
   1. training designed to prepare employees to perform their job effectively, learn about the organization, and establish work relationships
   2. •Developing an orientation program that works:
   3. •Start where employees are
   4. •Keep it simple
   5. •Allow for conversation
   6. •Encourage participation
   7. •Help employees communicate
   8. •Help employees remember
   9. •Learn from experience 

1.  
   1. :  training designed to change employee attitudes about diversity and/or develop skills needs to work with a diverse workforce
   2. •Goals
   3. •Employees should understand how their values and stereotypes influence their behavior toward others of different gender and ethnic, racial and religious backgrounds
   4. •Employees should gain an appreciation of cultural differences among themselves
   5. •Employees should avoid and correct behaviors that isolate and intimidate minority groups

Fit with strategy

Specific Feedback

Acceptability

Reliability 

Validity 

A formal discipline process in which hte consequences become more serious if the employee repeats the offense

Methods of solving a problem by bringing in an impartial outsider, but not using the court system.

Cheaper

1.  
   1. •Open-door policy:  an organization’s policy of making managers available to hear complaints. Try to have the Manager help the situation & solve. Can work up or across the chain of command.
   2. •Peer review:  process for resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute
   3. •Mediation: nonbinding process in which a neutral party from outside the organization hears the case and tries to help the people in conflict arrive at a settlement
   4. •Arbitration: binding process in which a professional arbitrator from outside the organization (usually a lawyer or judge) hears the case and resolves it by making a decision

Job dissatisfaction

Tasks

Roles 

Role ambiguity

Role Conflict

Role Overoad

Personal Dispositions

Negative affectivity

Core Self-evaluations

Supervisors and coworkers

Pay levels

1.  
   1. •Tasks: many aspects of a task have been linked to job dissatisfaction
   2. •Especially complexity, degree of physical strain and exertion
   3. •Roles:  set of behaviors that people expect of a person in a particular job
   4. •Role ambiguity:  uncertainty about what the organization expects
   5. •Role conflict:  an employee’s recognition that demands of the job are incompatible or contradictory
   6. •Role overload:  a state in which too many expectations or demands are placed on a person
   7. •Personal dispositions associated with job dissatisfaction
   8. •Negative affectivity:  pervasive low levels of satisfaction with all aspects of life
   9. •Core self-evaluations:  opinions individuals have of themselves – positive or negative
   10. •Supervisors and coworkers:  if people feel they are not valued by their supervisors or coworkers, they may leave
   11. •Pay levels: if pay and benefits do not meet the employee’s expectations they may pursue other opportunities

Government regulation affects pay structure:

Equal Employment Opportunity

1.  
   1.  
      1.   any differences in pay must be tied to business-related considerations such as job responsibilities or performance. Goal:  Equal pay for equal work

1.  
   1.  
      1. •Fair Labor Standards Act (FLSA) of 1938: 

1.  
   1.  
      1. Federal Law that establishes a minimum wage and requirements for overtime pay and child labor

Minimum wage

Living Wage

1.  
   1.  
      1.  the lowest amount that employers may pay under federal or state law, stated as an amount of pay per hour
      2. a minimum wage based on cost of living in a particular area

1.  
   1.  
      1. managers, outside salespeople and any other employee not covered by FLSA requirement for overtime pay

1.  
   1.  
      1. :  employees covered by FLSA requirement for overtime pay
      2. •The overtime rate under the FLSA is 1.5 times the employee’s usual hourly rate, including any bonuses, and piece-rate payments
      3. •Overtime pay is required, whether or not the employer specifically asked or expected the employee to work more than 40 hours
      4. •Only four states (Alaska, California, Colorado, Nevada, plus Puerto Rico) have daily overtime rules (> 8 hours / day)
      5. •Employers can choose to have more favorable OT rules, but this is not a legal requirement
      6. •If the employer knows the employee is working overtime but does not pay time and a half, the employer may be violating the FLSA 

1.  
   1.  
      1.  
         1. FLSA sharply restricts the use of child labor  
      2. •Children 16 and 17 cannot be employed in hazardous occupations
      3. •Children 14 and 15 may only work outside school hours for limited time periods
      4. •Cannot work for a company that is involved in interstate commerce. But they are able to work for their parents business.

1.  
   1. :  organizations that offer competing goods and services
   2. •Labor costs are a key consideration to stay competitive

1.  
   1. :  the market in which workers compete for jobs and employers compete for workers
   2. •Companies have to stay competitive with regard to pay to attract the best employees

1.  
   1. : ratio of average pay to the midpoint of the pay range
   2. •Assuming the pay structure is well planned to support the organization’s goals, the compa-ratios should be close to 1
   3. •If > 1:  the average pay is above the midpoint
   4. •If < 1:  the average pay is below the midpoint