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a formal, stuctured process used to measure, evaluate, and influence employees job-related attitudes, behaviors, and performance results
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| 2 Elements: decisions about which behaviors to engage in and decisions about how much effort to expend |
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| states that people choose their behaviors and effort levels after considering whether their behaviors and effort will improve their performance and lead to desired consequences |
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| relationship between making an effort and performing well |
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| relationship between performing well and its consequences |
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| The value of the consequences to the employee |
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| Performance-Driven Culture |
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| A company culture that depends on effective performance management |
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| Valid Performance Measure |
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| One that accurately reflects all aspects of the job, and nothing else |
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| Deficient Performance Measure |
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| If the performance measure does not assess all of the behaviors and results that are important and relevant to the job |
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| Contaminated Performance Measure |
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| If the performance measure assess anything that is unimportant or irrelevant to the job |
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| High-Performance Work System |
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| When performance is tightly integrated with other HR activities to improve workforce competencies, attitudes, and motivation |
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| The dimensions against which the performance of an incumbent, a team, or a work unit is evaluated |
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| Focus on personal characteristics, such as loyalty, dependability, communication ability, and leadership |
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| Focus on how the work is performed |
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| Organizational Citizenship Behaviors |
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Behaviors that support the social and psychological environment in which task performance takes place
Ex:
Accepting and playing by the companies rules
Helping others
Tolerating less-than-ideal circumstances without complaining
Volunteering to carry out tasks beyond what the job description requires
Behaving in an enthusiastic and courteous manner
Endorsing, supporting, and defending the organization and its objectives |
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| Focus on what was accomplished or produced rather than on how it was accomplished or produced |
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Multiple Criteria
Examples: |
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The scores can be affected by things other than the teachers
The job entails much more than just improving test scores
Teachers "teach to the test" rather than all of the knowledge the children need
Teachers manipulate the rest scores by unethical means, such as providing answers |
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| Performance measurement for all employees occurs at approximately the same time |
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| Distributes the task of reviewing performance and providing feedback over the year |
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When employees assess their own performance
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| When such surveys are used to evaluate the performance of specific managers |
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| When evaluations from supervisors, subordinates, peers, and employees themselves are all used to measure performance |
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| Involves evaluating performance based on judgements and opinions of subordinates, peers, supervisors, other managers, and even the employees themselves |
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| The rater is forced to evaluate the individual or team to make comparisons to others |
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| The appraiser lists the focal employees (or teams of employees) in order, from best to worst, usuall on the basis of overall perforamance |
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| Absolute Standards Formats |
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| Appraisers assess performance in relatin to specified criteria and do not make direct comparisons among employees |
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| Behaviorally Anchored Rating Scales |
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| Provide appraisers with specific examples of the behaviors that go along with each value that can be assigned to an employees performance |
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| Behavioral Observation Scales |
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| Ask appraisers to report how frequently employees engage in specific behaviors |
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| Measures performance using objective, impersonal criteria, such as productivity, absenteeism, and turnover |
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| Balanced Scorecard Approach |
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| Using multiple objective measures that tap into numerous different dimensions of performance |
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| Begins with the establishment of performance objectives (goals) for the upcoming performance period; performance is then measured against the objectives that were set |
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| Involves the use of positive rewards to increase the occurence of the desired performance |
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| Technologies using unique qualities of body parts for identification |
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| Recognizes that people working the same job can differ greatly in terms of the value they contribute to the organization, and it seeks to provide employees with an incentive for maximizing the value they contribute |
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| Which refers to cash rewards that are tied to some aspect of performance and paid in lump sums rather than as raises |
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| Cash payments awarded at the beginning of an employment period, usually for accepting an employment offer |
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| Cash payments awarded to current employees for referring a successfully hired job applicant |
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| Cash payments tied to the length of service |
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| Noncash rewards provided as an after-the-fact display of appreciation or acknowledgment of an individuals or teams desired behavior, effort, or business result that supports the organizations goals and values |
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| Base pay (pay received regardless of performance) is set at a market rate, and a small pool of money is allocated distributing annual raises that reflect the past years perfromance of each employee |
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| Pegs base pay near the market average, and employees earn additional monetary compensation for excellent performance |
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| Base pay is set below the market average, and a large portion of the total earnings is paid based on performance |
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1. Finances
2. Customers
3. Operations (internal process)
4. Employees (learning & development) |
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| Proponents of balanced scorecards argue that organizations should monitor their performance using measures that reflect 4 domains: |
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| Granted "on the spot" to recognize employees for performing beyond the call of duty |
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| Granted to employees who have been recognized by their coworkers to show appreciation for their exceptional efforts |
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| Which ties performance appraisals to lump sum bonuses rather than to raises |
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| A tool used by managers and compensation professionals to determine the merit increase using information about employees performance ratings |
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| Employees are guaranteed a standard pay rate for each unit they produce |
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| Sets a standard time for each unit of production and then uses this time to determine how much employees are paid |
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| Involve measuring a work units costs and productivity, then sharing future gains with employees |
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Include any plan under which an employer pays regular employees, or makes available to them, special current or deferred sums based on the profits of the business in addition to their regular pay
(3 catergories; Current distribution plans, Deffered distribution plans, and Combined Distribution Plans) |
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| Current Distribution Plan |
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| Provide a percentage of profits to be distributed quarterly and annually to employees |
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| Deferred Distribution Plans |
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| Place earnings in an escrow fund for distribution upon retirement, termination, death, or disability. Because of tax advantages, these are the fastest growing type of plan |
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| Combined Distribution Plans |
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| Distribute a portion of profits immediately to employees and set the remaining amount aside in a designated account |
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| Refers to pay based on percentage of the sales price of the product |
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1. Stock Grants (stock given to employees)
2. Stock Options (employees ma buy future shares @ current prices)
3. Stock Purchase Plans (employees buy shares at discount) |
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| Stock Ownership... 3 main approaches companies get employees to buy stocks |
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| Employee Stock Ownership Plans |
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| Grant shares of stock to employees, frequently as a means of long term savings and retirement |
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| Stock Appreciation Rights |
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| Grant employees cash or stock awards based on the increase in the stock price over a specified time |
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| Gives an employee the right to buy stock during a specified period of time or under other specified conditions |
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| Have an exercise price that is above the market value of a companys stocks |
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| Involves changing the option date after the stock is issued to a date when stock prices were particularly low, which maximizes the option value |
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| Broad-based plans that allow employees to buy stock through the company, usually at a discount |
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