Study Guide for Exam 2
Study Guide for Exam 2 MGT 310
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This 6 page Study Guide was uploaded by Talia Rosas on Thursday March 24, 2016. The Study Guide belongs to MGT 310 at Colorado State University taught by Conroy, Samantha Ann in Spring 2016. Since its upload, it has received 138 views. For similar materials see Human Resource Management in Business at Colorado State University.
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Date Created: 03/24/16
MGT 310 – Exam 2 Study Guide Training (Optional Reading: Chapter 5; Pages 168181; 186190) 1. Know what socialization is, what organizational culture is and how each influences firm outcomes. Socialization – Process by which newcomers are transformed from outsider to participating effective members of the organization. Socialization occurs naturally as employees enter an organization and start interacting and getting social information. Stages of Socialization 1. Anticipatory Socialization st All learning that takes place prior to the 1 day. (Will find through realistic job preview, expectations start to form) 2. Encounter Newcomers learn task associated with the job, clarify their roles, and establish new relationships at work (1 69 months) Orientation, relationship development Learning roles, rules and norms 3.Settling in Newcomers begin to master demands of job. Socialization Outcomes How does successful socialization affect individuals? Role clarity, better performance, happier/healthier, more likely to stay. How does successful socialization affect organizations? Performance, lower turnover, stronger culture. Organizational culture – A pattern of basic assumptions that are considered valid and that are taught to new members. They way to perceive, think, and feel in the organization People’s behavior In artifacts Conversations Relationships 2. Understand the analysis that goes into making training decisions, how training programs are designed, & how the effectiveness of training can be assessed. Training Skill Types General skills – are defined as those skills that employees possess that could be used by them if they want to work in another organization (basic verbal skills, math, computer skills) Firmspecific skills – Specific to organization Cannot go where you go. Can only be used in organization. Example: Software that is only found at 1 organization. General FirmSpecific Employee preferred Employer preferred Transferable Nontransferable Employee paid or Firm will pay as a Company will pay for them benefit Training Organizational Process (ADDIE) Analysis Organization: Strategy, culture, HR planning Job/task: Skills required for job Person: Specific performance of employees Design Training objectives Development Decide on methods Implementation On or off the job Evaluation Reaction, learning, behavior, results Evaluation (An investment, cost/benefit ROI) Reaction – Did the trainees enjoy the training and think they gained from it Learning – Did actual learning take place? Have employees picked up new knowledge and /or skills. Behavior – Are employees behaving differently on the job as a result of the training Results – Is the organization seeing a return/results from training (higher production, lower cost, higher profits, lower turnover, etc.?) 3. Be able to apply understanding to cases and situations. Performance Management (Optional Reading: Chapter 6; Pages 198221) 1. Know the performance appraisal process. Identification (Defining Performance) Job Analysis, related to strategic planning/org. success. Measurement Methods: How do you get the information Sources: Where do you get the information Errors: Things that reduce the validity and reliability Management Connect past and future Feedback and Coaching/counseling 2. Understand the primary purposes of performance appraisal (administrative, developmental). Administrative Used in personnel decisions – Raises, promotions, layoffs Developmental Provide feedback Improve communications Evaluate goal achievement Coaching, career planning, find cause of problem. Other Legal defense Alignment of firm strategy with employees. 3. Be familiar with methods of rating performance that are used in firms and be able to select the optimal method depending on the organizational context (relative/absolute, trait/behavioral/outcome). Relative – Compare people (Competitive culture, enforces differentiation, can create conflict, lack in clarity of contribution) Example: GE Absolute – Measure against predefined scale, noncompetitive (encourages teamwork, less conflict, often inflated/bias) Trait – Worker characteristics Behavior – Asses the employee’s behavior at work (E.g., critical incidents, behavior checklists, behavior rating scales; take a long time to create) Results cannot be measures reliably or at reasonable cost Employee has little control (E.g. Auditor) Results/outcome – Assess the outcomes of employee’s behaviors at work (E.g. productivity measures) Results can be measured reliably and at reasonable cost Employee has control over results (E.g. Salesperson) 4. Know the pros and cons of various evaluators (self/peer/subordinate/customer.) Evaluators Supervisors: Understand the strategy/ big picture, know what performance looks like Self: Avoid for Administrative purposes (leniency), best for developmental purposes Peers: Influenced by friendships; less differentiation among employees Subordinates: Scared to be honest; can evaluate leadership; must ensure confidentiality; leader must be open to feedback Customers: Have limited perspective; external or internal; costly and time consuming 360degree feedback: using as many evaluators as possible for feedback 5. Understand the various rating errors that occur and how they influence performance management. Leniency: an error where employees have usually high ratings Severity: an error where employees have usually low ratings Central tendency: an error where all employees are rated toward the middle Halo/hors: allowing a global impression to influence all components Halo (All good) Horns (All bad) Similartome: an error when rating is inflated because the manager sees similarities with the employee. Recency: an error where most recent behavior influences ratings more than behavior of the entire appraisal period (can fix this by giving more frequent ratings) Contrast: a bias based on comparison to an employee just evaluated 6. Understand central legal considerations with performance management. 1. Job Analysis! 2. Provide clear, written instructions for evaluators 3. Allow employees to review their appraisals 4. Monitor rater agreement (higher is better) 5. Train raters (e.g., rates error training, frameofreferencetraining) 7. Know how feedback is ideally given to employees. Frequency Past AND future focus Working with employees to determine cause of performance problems Ability: (Not doing well at the job because they are not capable) – Training, job change Effort: Reward and recognition Situation: (Specific to what the situation is) – Make change or work together to find solution Interpersonal skill: Listening to others, no predesignated assumptions 8. Be able to apply understanding to cases and situations. Compensation (Optional Reading: Chapter 7) 1. Know the forms of compensation (Base/Incentives/Indirect). Base: salary and hourly wages FIXED PAY Incentives: rewards tied to specific behavior VARIABLE PAY; 91% of organizations have variable pay for salaried, except employees and 13% of payroll is used on variable pay for salaried, exempt employees. Incentives/PFP move away from entitlement (believing one is inherently deserving) Indirect: benefits, noncash; health insurance, vacations, and unemployment compensation 2. Understand strategic compensation decisions and drivers. Strategy Fairness Organizational culture Legal compliance 3. Understand internal equity and external equity. Internal equity: refers to whether the compensation system rewards individuals in different jobs in the firm equitably as a function of their overall value to the firm; fairness of internal pay structure (results of job evaluation) External equity: refers to whether the compensation system within the firm is consistent with the relevant labor market compensation; fairness of pay relative to the external labor market (results of market surveys) 4. Have a basic understanding of job evaluation types and steps. Job Evaluation methods Job ranking: ranks jobs on the basis of their relative worth; the simplest and oldest system of job evaluation; often use paired comparisons to establish ranks Job classification: A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades; the description of each of the job classes constitute the scale against which the specifications for the various jobs are compared Point Method Job Evaluation Steps (Point Method) Determine compensable factors (i.e. the characteristics of jobs that an organization values and chooses to pay for) Assign points to compensable factors Rate jobs based on the compensable factors Total points and group into grades Incorporate market data 5. Understand central legal considerations with compensation. Title VII, ADEA, ADA Fair Labor Standards Act Minimum Wage Child Labor Hours of Work (Exemptions) Equal Pay Act of 1963: Men and women doing the same (similar) job should be paid the same Lilly Ledbetter 6. Understand the different forms of payforperformance at different levels (individual, team, organizational). Individual Pay increases based on performance evaluations Lumpsum Bonuses Endofyear bonus based on performance Less expensive than merit pay overtime and tend to have a stronger influence moving away from an entitlement culture Merit pay is a form of Individual incentive/PFP: Pay increases based on performance appraisals. Improve merit pay: Improve performance appraisal accuracy; encourage mangers to make distinction in pay among high and low performers Team Preestablished levels of team performance Measuring team performance to determine the pool of pay for the group, then distributing based on individual contributions may be a way to reduce the negative outcomes of Team Incentive Plans Organizational Ties rewards to organizational outcomes Productivity Financial Performance Pay that is tied to organizationlevel outcomes such as financial performances or productivity Examples: Gainsharing – uses group productivity measure to determine payouts; Profit Sharing – uses frim financial measure to determine payouts Line of sight can be a problem (i.e., it is hard for individual employees to feel they influence these higher level outcomes), so it may be a stronger motivator. Though gainsharing is more likely to motivate than profit sharing These programs align the interests of employees with the employer 7. Understand the implications of implementing payforperformance (i.e., the positive and negative effects). Merit Pay Pros Cons Correlated with high performance Expansive High performers would like the firm Performance measurement, and to have merit pay (thus, sorting effect especially managerial performances are possible) appraisals, is fraught with problems Since some managerial performance (e.g., bias) appraisals are used, merit pay Managers often do not differentiate decisions tend to take into account when allocating merit pay, giving many aspects of an employee’s everyone the same or close to the performance same raise Team Incentive Plans Pros Cons Increase collaboration Can lead to social loafing or free Good when measuring teamlevel riding (i.e., people get away with performance is easier, better and more contributing very little and still accurate making money Can create betweenteam competition 8. Have a basic understanding of what forms of payforperformance may be better in different contexts. Certain organizational conditions are important to successful use of Incentives/PFP Alignment of the incentive/PFP program with frim and human resource strategies (i.e., external and internal fit) Variability in performance; if there is variability in performance, there is something on which pay can vary and a reason that PFP could have an effect on performance outcomes Performance measurement is critical – only firms with good performance measurement (i.e., valid!) should use incentives/PFP. 9. Be able to apply understanding to cases and situations.
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