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MAN 3301Exam 2
MAN 3301 Exam 2 flashcards
114
Business
Undergraduate 3
06/01/2011

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Term
Demands of a Job
Definition
Tasks, duties, responsibilities
Term
JA: Job
Definition
group of positions that are identical as to their major TDRs
Term
JA: Position
Definition
collections of TDRs that compromise a single employee's work assignment
Term
JA: Knowledge
Definition
body of information required to perform the job
Term
JA: Skill
Definition
level of proficiency (application) required in performing a specific task

application of knowledge
Term
JA: Ability
Definition
trait or capability an individual possesses at the time they begin to perform a task

innate capability
Term
JA types and methods: Task inventories
Definition
CODAP

FJA (funcitonal job analysis - led to development of JAS (job analysis schedule)

FLEISHMAN
best for physical analysis
Term
JA types and methods: Questionnaires
Definition
Position Analysis Questionnaire (PAQ)

Behaviorally oriented or other 'canned' "off-the-self" system
Term
Methods of data collection
Definition
Observation

Work Samples
(most valuable type)

Interview

Questionnaire
Term
Keys to successful Implementation of JA
Definition
state the purpose and objective

communicate to managers and employees

train analyst

train and use Subject Matter Experts (SME)
Term
When should JA and Job Descriptions be updated?
Definition
assigning a new incumbent to a job

When major changes are made in product or outputs provided by work unit or individual

introduction of new equipment, meothds, or procedures to workplace

reorganization of work unit

Implementation of new pay system

When a new responsibility (a major work activity area) is added to job
Term
JA cost benefit analysis
Definition
Total cost
-Direct cost (copying, computer) and indirect cost (time spent by HR dept, supervisors and job incumbents)

Perceived Benefits:
-Employment stability, job performance, good citizenship behaviors
Term
Strategic Planning
Definition
preparing the organizations present state for the future goals

finding and recruiting the appropriate people at the right time
Term
Human Resource Planning
Definition
Organizational activities involving the (1) identifications of the 'type' and 'number' of critical knowledge/skills (jobs) needed during a defined time period and
(2) the 'timely' staffing of the necessary people to achieve the organization's objectives

Should provide the organization with a competitive advantage
Term
HRP Forecasting
Definition
Labor demand (expected staffing needs)
-Qualitative (Delphi, staffing tables)
-Quantitative (regression analysis, time series analysis)

Labor Supply (expected staffing availability)
-Quantitative (matrix and transitional models)
-Qualitative (flow models, skills/replacement charting)
Term
HRP problems with forecasting
Definition
Subjective

Judgemental: even objective (quantitative) methods are to some degree subjective - they depend on human assessment

Complexity

*limited to how accurately the Past REFLECT the 'true future'
Term
Labor surplus (reduction options)
Definition
Downsizing, Pay reduction
- Fast, high suffering

Work sharing/Reduced hours
- Fast, Moderate suffering

Hiring freeze, Early retirement
-slow, low suffering
Term
Labor Shortages (avoiding options)
Definition
overtime, temps*, outsourcing
- Fast, easy to change
* easy to bring them on, but could be costly

Turnover reductions
-slow, moderate/minimal ability to change

Innovative recruitment, pay incentives, tech innov
- Slow, low ability to change
Term
Recruitment
Definition
Identifying and attracting the sufficient number of job candidates with the necessary KSAs to apply for job openings in a 'timely' manner
Term
Knowledge/Skills and Traits Valued by employers
Definition
Marketing skills

Global business/cultural diversity skills

Strategic skills

Analytical (problem skills)

Financial skills

technology to manage info

entrepreneurship skills

interpersonal/comm skills
-kindheartedness, open-mind and spirit are innate- tech skills can be acquired)

cooperativeness (tolerance)

leadership skills

ethics/integrity
Term
Factors that affect recruitment strat issues
Definition
Organization's business strat

General Economic Conditions

Relevant Labor Market (supply) conditions

Competition for (critical skills) labor (demand)

Gov't regulations- employment law

*Organizational culture*

Career & dev opportunity

Compensation (pay and benefits)

Job design ~ KSA req's

Time/cost constraints
Term
Recruitment strategies
Definition
Natural (direct) recruitment
-applicants initiating recruitment

Artificial recruitment
-Applicants responding to Company initiatives

**Realistic Job Preview** (RJP)
-Accurately describing (or showing) the job requirements and conditions to applicants
-Not omitting the less desirable aspects of a job
-Waynus created
--be realistic
---is it better to have someone work for 1-2 years or have nobody for months?
Term
Internal recruitment Advantages
Definition
Motivational, morale, and performance enhancement

previous company training- less expensive recruiting costs

more info to make more accurate selection decisions

candidates know the organization's culture and policies
Term
internal recruitment disadvantages
Definition
lack of qualified personnel

inbreeding

'crown prince'- the anointed one/political favors

Employees not selected may be resentful

time consuming

lack of acceptance by former peers and co-workers
Term
E-recruiting: Valid applicant
Definition
company is actively attempting to fill a job opening

individual met the employer's application procedure

Individual has expressed an interest in that company's job opening
Term
E-recruiting: invalid applicant
Definition
Posting on open website 'job boards'

Mass mailing w/o specific job interest

general sharing of resumes by applicants by companies
-individual did no express interest in other company
Term
External Recruitment: Advantages
Definition
Acquire new skills

innovative ideas (new blood)

Less susceptible to politics (initially)

Less expensive than training your own (depends on time-frame and needs)
Term
External recruitment: disadvantages
Definition
candidate may not be accepted by present employees

time required for socialization and orientation to the organization

generally more expensive recruiting process
Term
Contingency Workforce
Definition
temporary help agency or an on-call basis

As independent contractor (often earn more/no benefits)
Term
Professional Employment Organizations
Definition
Lease employees to companies

PEO pays the employee and required taxes
Term
Four stages of recruiting process
Definition
1. Results of HRP and recruiting needs analysis

2. Recruiting program development (plan)

3. Implementation of recruiting program (do it)

4. Recruiting program evaluation (audit)
-cost/benefit analysis
Term
Employee Selection Process
What is it really?
Definition
the process of determining the critical job req's (TDRs) and required job chars (KSAs) AND then collecting and evaluating information about an applicant in order to determine whether or not to extend and OFFER OF EMPLOYMENT
-collect information to then evaluate
Term
Griggs V Duke, 1971
Definition
Adverse Impact: selection criteria into promotional track jobs (white v. Black american males)

Court ruled- employer has the burden to prove employement req's are job related (job analysis)
Term
Albermarle v. Moody paper company
Definition
reinforced Griggs decision

Any step in the selection process is considered a TEST and must be a valid predictor of performance
Term
Reliabilitty
Definition
Extent test or any measuring device provides consistent information across time and judges (an individual's score on the same or like test should not vary significantly)
Term
Validity
Definition
Does it measure what it's suppose to measure?
-is it job related?
-Is the test a good proxy (predictor) of future performance?
Term
Content Validity
Definition
Work Samples

Direct assessment of job tasks and behaviors
Content of measure reflects content of job (keyboard, soft-ware application, welding, etc.)
Term
Criterion-related validity
Definition
Empirical

Indirect measures of future performance (the extent of correlation of scores on selection measures and job performance (GPA and sales volume)
Term
Construct Validity
Definition
Consistency between test scores on a test and mastery of a construct (leadership ability, stress or emotional stability)
Term
bedrock qualifications
Definition
knowledge skills and abilities necessary for the applicant to know for the job

Mechanic, math teacher, etc

screening method
Term
The selection interview
Definition
-Most common selection device
-criticized for poor reliability and validity
--interviewer is the measurement device
-too much time: too little information
Term
Unterview stages
Definition
Rapport (5-10%)
Information getting (40-45%)
- interviewer asking the questions
Information giving (internet had changed formats)
- talking about the company, giving info on job
Summary (5-10%)
Term
Interview behaviors
Definition
Rapprt
-makes candidates comfortable
Task
- collect job related information from the company
Self-centered (AVOID)
- behaviors by the interviewer to make them feel good at the expense of the interviewee- power trip
Term
Types of selection interviews
Non-directed (unstrctured)
Definition
-Job related questions are asked based on candidate's background (education, experience, etc...)
-best used for advanced professional and managerial jobs
Term
Types of selection interviews
Structured
Definition
-questions and answers development and specified in advanced
-generally more valid BUT lack flexibility
-best used for highly structured jobs (entry level, operational, administrative)
Term
Types of selection interviews
semi-structured
Definition
use of situational and behavioral description questions
Term
Behavioral description questions
Definition
open ended questions on real experiences you've had
Term
Situational (hypothetical) behavior questions
Definition
in a made up situation, explain how you would handle it
Term
Inverted Funnel approach to Interviewing
Definition
[image]

ask broad questions that lead to more specific information
Term
Assessment Centers
Definition
Not a test- a battery of many tests

expensive, valid, unbiased predictor
Term
Departmental interviews
Definition
Conducted by managers, supervisors or employees
-should be trained in their role in how to interview

Purpose: assess the candidates technical knowledge and skills

Problems:
-untrained departmental interviews
-assessment of non-job related criteria
-prejudice
Term
Hawk's Criteria (yield ratio)
Definition
Cost benefit Framework

-cost per recruiting source, selection ratios (turnover, selection, acceptance, yield rates)
-cost per candidate
-cost per new employee acceptance
Term
Wanous' Framework
Definition
Qualitative

Evaluates the fit between selected recruits expectations (satisfaction) and organiational needs (retention assessment)
Term
Direct pay
Definition
pay (wages), salaries, incentives, bonuses, commisions related to performing the job
Term
indirect pay
Definition
BENEFITS, health insurance, vacation, retirement plans, etc.
Term
Compensation
Definition
refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship
Term
Fixed or Basy pay (direct)
Definition
Job or individual focus
-premium pay
-Hazard pay
-shift differential pay
Term
Variable pay (direct)
Definition
incentives, bonus, merit pay*

*a joke, very difficult to describe
Term
Benefits pay (indirect)
Definition
health insurance, vacation, pension, etc...
Term
Non-monetary and psychological rewards (indirect)
Definition
office location, job security, job design, NRBs*

*novel reward behaviors
Term
Compensation objectives
Definition
Efficiency

Fairness

Compliance
Term
Equity theory
Definition
Social comparison theory

interests, inputs <-> compared to <-> outputs

based on perceptions
relative phenom
underpaid or overpaid
Term
Distributive Justice
Definition
The actual determination of the outcome (amount of adjustment to be awarded)
Term
Procedural Justice
Definition
process used to determine outcomes (the amount of the pay adjustment to be received by an employee)

we all get evaluated on the same procedures and compensated equally
Term
Interactional
Definition
interpersonal nature of how outcomes are implemented (should be explained well, respectfully and with consideration to the employee)

treating employees with respect and trust
Term
Internal equity (job evaluation)
Definition
value of one job to the value of every other job in the company

A->B*->C->D
*employee
-i can see that i am more valuable that A but less valuable than C

Internal inequity
-I value my job as more valuable than D
Term
employee equity (performance appraisal)
Definition
when employees compare what they do in the same job and same company with other employees
Term
external equity
Definition
we compare what we make to what people in similar jobs we have make in other companies outside of ours
Term
Legislation
Definition
establishes a minimum wage, governs overtime pay, protects employees from discrimination, regulates benefits, and determines how compensation is taxed
Term
Davis Bacon Act (1931)
Definition
1st legislative act giving minimum wages for federal contractors
Term
Fair labor standards act (1938)
Definition
-Minimum wage
-Hours of work
--overtime pay
--Employee status
---Exempt (executive, administrative*, professional)
----you can pay overtime but don't have to
---nonexempt
---commission (outside) sales
-what is an employee (v. independent contractor)**
-Child labor
-equal pay provision
-record keeping provision

*people who have access to valuable information
** independent contractors are people hired to come into the company and work but do not receive benefits from the company
Term
Minimum Wage
Definition
Federal minimum $7.25
Florida minimum $7.31 as of june 1, 2011

Direct effect
-actual increase/cost to employer
indirect effect
-company could possibly fire part of work force
Term
Equal Pay Act 1963
Definition
extension of the FLSA

Men and women who perform significantly euql work can be paid differently if the pay system is designed to differentially recognize
-performance
-seniority
-quality or quantity of resulsts produced
-factors other than sex
Term
Lilly Ledbetter Fair Pat Restoration Act, 2009
Definition
Amendment to Title VII, CRA of 1964

employee has 180 to file a pay complaint. now they have 180 to file complaint at every pay check
Term
Key phases for implementing a pay plan
Definition
[image]
Term
Characteristics of Benchmark (key) job
Definition
Job contents are well-known and relatively stable over time

Job is common across several different employers

Sizable proportion of work force employed in job
Term
Relevant Labor Market
Definition
includes employers who compete
-for same occupations or skills
-for employers in same RLM area for specific KSAs (jobs)
-With like sales, revenues, profits
-With same products or services
Term
Labor competitor
Definition
anybody who is recruiting in the RLM that is employing labor I need for my company
Term
Job evaluation
Definition
determining the worth or value of each job in your organization
Term
Relevant Market Rate
Definition
[image]

RMR
-if i don't pay a certain rate, then i won't get the people i need

*red line is midpoint rate for each job grade
Term
50% spread
Definition
distance between minimum and maximum pay is 50%

No-one can be paid below minimum/above max in any pay range

the minimum is always 80% of the midpoint rate.
the maximum is always 120% of the midpoint rate

formula = take half the minimum and add it to get the maximum

therefor 80%/2= 40; 40 + 80 = 120

*a tight spread means that the minimum and maximum is not large
Term
are companies paying for the person or the job?
Definition
Job!!
Term
Pay compression
Definition
when the EXTERNAL market rates INCREASE FASTER than the INTERNAL pay adjustments
Term
Pay Range
Definition
[image]
Term
compa-ratio
Definition
where a group of employees are being paid in the range
- employee salary/midpoint
Term
Types of individual pay plans
Definition
Merit pay
- add % to pay which means every year the company has to pay more and more

Lump sum
- company gives employee a bonus where it doesn't raise their base pay
Term
Pay adjustment matrix
Definition
[image]

Max- employee is already near or at the maximum, therefor they can only be paid in little increments
Term
Ms. Kimbob’s present job’s midpoint is $41,275, her compa-ratio is 114%, and she received a performance appraisal rating (PAR) of 3 (Superior), what actual annual dollar pay adjustment (increase) amount would she receive [round to the nearest 100th]?
Definition
49406.18*

41,275 * 1.14; rating of 3 means she gets 5% (pay adjustment matrix) raise. Take (41,275 x 1.14)5%

*to find the maximum pay take midpoint pay and multiply it by 120%
-49530
--her pay might be higher than the MAXIMUM rate, therefor she can't be paid that.
Term
Other types of individual bonuses and awards
Definition
Significant rewards:
-Referral rewards
-Patent awards
-*Special achievement awards (professional dev or service or community service)*
Term
Novel reward behaviors (NRB)
Definition
Highly-moderately effective
-spontaneous
-infrequently provided
-minimal in expense
-relate to a specific performance activity
-provided by the supervisor
-- comes out of his pocket
-usually not part of a traditional reward system
-generally individual based (buy may be team)

Typically awarded for exceptional performance
-special projects
-exceptional performance

examples:
- banana lapel pin
- $20 in their hard hat
Term
Profit-Sharing Plan
Definition
*Employees receive annual bonus or shares in company based upon COMPANY-WIDE PERFORMANCE
-paid in CASH or
--DEFERRED into retirement plans

*if employees fail to reach goal then 'bonus' is not given
Term
Success sharing-plan
Definition
Employee base pay is constant
employee never makes less than what is already made
Term
Risk-sharing
Definition
company does well, employee gets big increase
company does poor, employee gets pay reduction
Term
Gain-sharing plan
Definition
Unit-oriented
-how a unit in a company performs and if the receive a bonus
Term
Individual choice plans
Definition
-Jobs are not INTERDEPENDENT and individual measures exist

-individual performance measures are STABLE
Term
Group choice plans
Definition
-output is COLLABORATIVE and individual contributions can be assessed

-performance standards CHANGE TO MEET ENVIRONMENTAL PRESSURES and organizational objectives
Term
Executive pay system
Definition
5 components
-Base salary
-short-term (annual) incentives or bonuses
--12-18 months
-Long-term incentives and capital appreciation plans
-executive benefits
Executive prerequisites (perks)

Role of Boards of Directors
-have the ultimate responsibility for the success or failure of the firm!
-responsible for creating an ethical culture that provides leadership, value and compliance
Term
Golden parachute
Definition
contract protecting executives (defined pay out) in case of loss of their job usually due to acquisition, merger or termination

scrutinized by society
Term
What are employee benefits?
Definition
The part of the total compensation package, other than pay for time worked, provided to employees in whole or in part by employer payments.
-life insurance
-pension
-worker's comp
-vacation
-holidays
Term
Mandatory benefits
Definition
-Social security
-unemployment insurance
-worker's comp
-employee retirement income security act
--1973 ERISA
-Family medical leave act (FMLA)
Term
Voluntary benefits
Definition
-Major medical
-supplemental insurance (long-term care)
-life insurance
-dental
-educational reimbursement
-retirement (deferred) income program (401k, esop)
-vacation
-holiday
-health/fitness club expense
-child care
-financial/legal services
-relocation expense
Term
Unemployment Insurance (UI)
Definition
benefitcs by federal and state taxes levied on employers under federal unemployment tax act (FUTA). Based on Employment Experience Rating (EER)
Term
Unemployment compensation
Definition
insures income to a subset of workers who are temporarily unemployed and searching for any suitable employment
Term
Denial of unemployment benefits
Definition
-Voluntarily quit without good cause
-Discharged for misconduct (just cause)
-Discharged for fraud
-failed to seek or accept suitable employment
-received certain other unemployment benefits
-unemployment was cause by labor disputes resulting in work stoppages
Term
Worker's compensation laws
Definition
state law intended to continue the flow of income, for a specified period for workers whose injuries are job-related.
Term
ERISA
Definition
Eligibility:
-employees at least 21 and are in at least 6 months of service
Vesting:
-length of time (generally 5 years) employee must work for employer before entitled to employer payments plan
Pension Benefit Guarantee Corporation- (PBGC)
Term
Work life balance programs
Definition
telecommuting
-worker's comp
--people working at home, wheres the separation between work and home?
Term
Benefit Plans: alternatives
Definition
Non-contributory
-employer pays total costs

Contributory
-costs shared between employer and employee

Employee financed
-employee pays total costs for some benefits
Term
Defined benefit plans
Definition
employer provides a specific pension level defined in terms of
-fixed dollar amount
OR
- percentage-of-earnings amount that may vary with years of seniority

difficult to finance due to retired employees remaining years
-how long do they have to pay until you pass
Term
Traditional health care coverage
Definition
-Community-based system
-Commercial insurance plan
-self-insurance
--company is it's own insurance
---employee injury; company pays
Term
Types of health care systems
Definition
-Health maintenance organization HMO
-Preferred provider organization PPO
-Point-of-service plan POS
-exclusive provider organization EOS

-flexible spending accounts
-- employee puts in $X and company slowly takes out small increments until it's gone
---if employee doesn't use it then it's gone
-Health savings accounts HSA
--combines health insurance with a tax-deductible savings account for paying health care cost. A viable employee health care option for small businesses that have a high deductible health plan
Term
Health insurance protective legislation
Definition
COBRA
-continues same insurance received from company after leaving said company.
--employee has to pay for insurance

HIPAA
-prohibits discrimination on the basis of health-related status
Term
recruiting and selection process (exam)
Definition
for exam focus on residential representatives
Term
(exam)
Definition
situation issue involving residential reps and management engineers
-just deals with pay, not benefits
--sgp&a

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