Flashcards
Performance and Compensation Management
Cards in this deck (37)
- 1Describe the best practice ModelOne set of superior HR practices which can be applied in virtually any contexts to achieve a competitive advante
- 2List 7 practices in the best practice model1. Employment security
2. Selective hiring
3. Self-managed teams
4. High pay contigent on company performance
5. Extensive Training
6. Reduction of status differences
7. Information Sharing - 3Describe the Best fit modelArgues that HR strategy becomes more efficient when it is linked to its surrounding context/envornment
- 4What are they 4 key elements to be considered with the best fit approach?- Competitive strategy
- organisational structure
- Management culture
- HRM systems - 5Explain internal and external fits in the best fit modelExternal - fit between HR practice and company business strategy (focus on innovation - target HR to innovation)
Internal = fit between HR practice and organisational structure / culture - 6What are the three main purposes of performance evaluation1. Administrative - promotion, termination, compensation
2. Developmental - performance feedback
3. Strategic - communication of organisational goals/objectives (ensure employee behaviours are aligned) - 7What strategy is most commonly used to evaluate competenciesGraphic Rating Scale
- Each employee is rated according to a scale of characteristics (eg. teaching evaluation) - 8What two methods can be used to evaluate behaviours?Critical Incident Method
- Keep log book of undesirable behaviours on the job
Behaviourally anchored rating scale (BARS)
- adding specific behavioural example for each performance level to Graphic Rating Scale - 9What are two methods to evaluate results?1. Quantity (sales, production etc)
2. Management By Objectives (MBO)
- Rate performance on the basis of employee achievement of goals set by mutual agreement of employee and manager - 10Explain the Halo EffectType of rater error
- excelling in one trait causes supervisor to overrate performance on other traits - 11Explain Central Tendencytype of rater error
- Select the middle scales to avoid high and low scores - 12What is recency effect?Type of rater erro
- occurs when supervisors rely on employees most recent performance - 13What is similar-to-me bias?Rater Error
- when employees are given higher ratings because they have something in common with their supervisors - 14How can rater error be improved?Providing training
- frame of reference training
-simulation training
- conduct rating and compare with others - 15What are five essential steps for performance review meetings?1. Evaluate Performance (Competencies, Behaviours, Results)
2. Summative and detailed feeback
3. Provide positive reinforcement
4. Exchange of views about what has been achieved and what needs to be done
5. Agreement about what needs to be done next (action planning) - 16Explain the 'Tell & Sell' performance review meeting style- Persuade employee to agree to supervisor's plan for improvement
- Supervisors role: sentencing judge - 17Explain the 'Tell and Listen' performance review meeting style- Consider both supervisor's and employee's views together, reach conclusion, and plan for improvement
- Supervisor's role - attentitive judge - 18Explain the problem solving review meeting style- Work together to identify solutions to performance problems
- Supervisor's role: coach - 19What are some charactersitics of effective feedback?- Given frequently, not annually
- Create right context for discussion
- ask employee to rate own performance beforehand
- Encourage participation in session
- Recognise effective performance through praise
- focus on solving problems
- focus feedback on results/behaviour, not person
- minimise criticism
- agree to specific goals and set review date - 20What are the two main types of base pay?- Position based/Job based pay
- Person/competency based pay - 21Explain position based pay- standard pay rates are linked to positions
(eg. assistant, associate, manager)
- most commonly used system - 22Explain person-based pay- pay rates are linked to overall personal characteristics
- skill-based
- competency based
- seniority based - 23What is internal and external equity?Internal equity - comparison with employees in the same organisation
external equity - comparison with employees that perform similar work in other organisations - 24What are the two steps in establishing a pay structure?1. Internal Alignment
2. External Competitiveness - 25Explain Internal AlignmentFirst step in determining a pay structure
- based on job evaluation/description to determine the relative worth of each job within an organisation
- points system used to rank jobs
- Organisations likely to have different structures (eg. Engineering/admin) - 26Explain external competitivenessSecond step in determining pay structures
- Job evaluation points are converted to dollar mounts by comparison to market pay rates
- market data is collected usually from consulting companies - 27What are some of the advantages of employee benefits?- Attraction
- Organisation committment
- Pay satisfaction
- reduction in turnover - 28What is merit pay?- annual increases in base salary that is linked to individual performance appraisals
(merit bonuses are also based on performance but not included into base pay) - 29What is gain sharing?Payments based on group or plant performance that does not become a part of the employees base pay
(eg. productivity gains, deficit reduction) - 30What is profit sharing?Payments based on company's profits and do not become part of the employees' base pay
- 31Why is there a gender income gap?1. Income gap (across occupations)
- non-standard employment more common among women
- male dominated jobs generally better paid
- managers that manage a large number of female workers are paid less than those managing male workers - 32Why is there a gender wage gap?Wage gap (within occupations)
- male managers tend to favor male subordinants
- merit pay; male managers tend to reccommend larger pay increase for males
- male workers have stronger network
- women are less likely to negotiate salary - 33Explain the Balanced Score CardStrategic performance management tool, with 4 areas to identify measure of an implemented strategy
- financial
- customer
- business planning
- feedback and learning - 34Explain the financial aspect of the BSCencourages the identification of a few relevant high-level financial measures. In particular, designers were encouraged to choose measures that helped inform the answer to the question "How do we look to shareholders?" Examples: cash flow, sales growth, operating income, return on equity
- 35Explain the customer area of the BSCencourages the identification of measures that answer the question "How do customers see us?" Examples: percent of sales from new products, on time delivery, share of important customers’ purchases, ranking by important customers.
- 36Explain the internal business processes of the BSCencourages the identification of measures that answer the question "What must we excel at?" Examples: cycle time, unit cost, yield, new product introductions.
- 37Explain the Learning and Growth area of the BSCncourages the identification of measures that answer the question "How can we continue to improve, create value and innovate?". Examples: time to develop new generation of products, life cycle to product maturity, time to market versus competition.
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- Flashcards on Performance and Compensation Management, created by Michael Contibas on 22/11/2014.
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- Michael Contibas
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