HRM 361 Midterm 2 .txt

  1. Recruiting
    process of generating a pool of qualified applicants for organizational jobs
  2. Labor markets
    external supply pool from which employers attract employees
  3. Labor market componenets
    labor force population -> applicant population -> applicant pool -> individuals selected
  4. Labor force population
    all individuals who are available for selection if all possible recruitment strategies are used
  5. Applicant population
    a subset of the labor force population that is available for selection using a particular recruiting approach
  6. Applicant pool
    all persons who are actually evaluated for selection
  7. Considerations for determining applicant popoulations
    - number and type of recruits needed, - timing of recruiting to ensure timely placement, - external and internal messages on job details, - qualifications of competent applicants to be considered, - sources for obtaining qualified applicants, - outsides and inside recruiting means to be used, - administrative recruiting and application review activities
  8. Continuous recruiting
    efforts to recruit offer the advantage of keeping theemployer in the recruiting market. ex:college campus recruiter
  9. Intensive recruiting
    may take the form of vigorous recruiting campaign aimed at hiring a given number of employees, usually within a short period of time
  10. RPO (recruitment process outsourcing)
    can be done to improve the number and quality of recruiting candidates, as well as to reduce recruiting costs
  11. PEO (professional employer organizations)
    has its own workforce, which it supplies by contract to employers with jobs (outsourcing)
  12. Recruiting diversity
    - persons with different racial/ethnic backgrounds, - older workers over 40 years of age, - single parents, - workers with disabilities, -welfare-to-work workers, - homeless/substance abuse workers
  13. Advantages of external recruiting
    - new sources bring new perspectives, - training new hires may be cheaper and faster because of prior external experience, - new hires are likely to have fewer internal political supporters in the firm, - new hires may bring new industry insights and expertise
  14. Disadvantages of external recruiting
    - the firm may not select someone who will fit well with the job and the organization, - the process may cause morale problems for internal candidates not selected, - new employees may require longer adjustment periods as well as orientation efforts
  15. External recruiting sources
    media sources, newspapers, magazines, television, radio and billboards
  16. Headhunters
    the size of the fees and the aggressiveness with which some firms puruse candidates for executive and other openings have led to such firms being called headhunters
  17. Employment agency search firms are split in two
    (1) contigency firms that charge a fee only after a candidate has been hired by a client company and a (2) retainer firmst hat charge a client a set fee whether or not the contracted search is successful
  18. Internal recruiting methods
    organizational databases, job postings, promotions and transfers, current employe referrals
  19. Advantages of internal recruiting
    - the morale of a promotee is usually high , - the firm can better assess a candidate's abilities due to prior work actions, - recruiting costs are lower for some jobs, - the process is a motivator for good performances by employees, - the process can aid succession planning future promotions, and career development, - the firm may have to hire only at the entry level and then move employees up based on experience and performance
  20. Disadvantages of internal recruiting
    - inbreeding of employees may result in a less diverse workforce, as well as a lack of new ideas, - those persons not promoted may experience morale problems, - employees may engage in political infighting for promotions, - a development program often is needed to transfer employees into supervisory and management jobs, - some managers may resist having employees promoted into their departments
  21. Job posting
    system in which the employer provides notices of job openings and employees respond by applying for specific openings
  22. Yield ratio
    comparison of the number of applilants at one stage of recruting process with the number at the next stage
  23. Selection rate
    percentage hired from a given group of candidates
  24. Acceptance rate
    percent of applicants hired divided by total number of applicants offered jobs
  25. Selection
    the process of choosing individuals with the correct qualifications needed to fill jobs in an organization
  26. Placement
    fitting a person to the right job
  27. Person/job fit
    matching the KSAs of individuals with the characteristics of jobs
  28. 5 mismatch situations of person/job fit
    - skills/job qualifications, - geography/job location, - time/amount of work, - earnings/expectations, - work/family
  29. Person/organization fit
    the congruence between individuals and organizationa factors
  30. Selection criterion
    characteristic that a person must possess to successfully perform work
  31. Predictors of selection criteria
    measurage or visible indicators of selection criteria
  32. Elements of good job performance
    - quantity of work, - quality of work, - compatibility with others, - presence at work, - length of service, - flexibility
  33. Selection criteria
    - ability, - motivation, - intelligence, - conscientiousness, - appropriate risk for employer, - appropriate permanence
  34. Predictors of selection criteria
    - experience, - past performance, - physical skills, - education, - interests, - salary requirements, - certificates/degrees, - test scores, - personality measures, - work references, - previous jobs and tenure
  35. Correlation coefficient
    index number that gives the relationship between a predictor variable and a criterion variable
  36. Concurrent validity
    measured when an employer tests current employees and correlates the scores with their performance ratings
  37. Predictive validity
    measured whe ntest results of applicants are compared with subsequent job performance
  38. Selection responsibilties
    - HR unit, - managers
  39. HR unit
    - provides intial reception for applicants, - conducts initial screening internview, - administers appropriate employment tests, - obtains background and reference information and sets up a physical examination if used, - refers top candidates to managers for final selection, - evaluates success of selection process
  40. Manager
    - requisition employees with specific qualifications to fill jobs, - participate in selection process as appropriate, - interview final candidates, - make final selection decision, subject to advice of HR specialist, - provide follow-up information on the suitability of slected individuals
  41. Realistic job preview
    process through which a job applicant receives an accurate picture of a job
  42. Application form serves 4 purposes
    1. it is a record of the applicants desire to obtain a position, 2. it provides the interviewer with a profile of the applicant that can be used during the interview, is a basic employee record for applicants who are hired, can be used for research on the effectiveness of the selection process
  43. Application disclaimers
    - employment at will, - reference contacts, - employment testing, - application time limit, - information falsification
  44. Employment at will
    indicates the right of the employer or the applicant to terminate employment at any time with or without notice or cause
  45. Reference contacts
    • requests permission to contact previous employers listed by the applicant on the application form or resume
    • - phone or written
    • - negligent hiring
  46. Employment testing
    notifies applicants of required drug tests, pencil and paper tests, phsycial exams, or electronic or other tests that will be used in employment decision
  47. Application time limit
    indicates how long application forms are active and that persons must reapply or reactive their applications after that period
  48. Information falsification
    conveys to an applicant that falsification of application information can be grounds for serious reprimand or termination
  49. Illegal questions to ask on application forms
    - marital status , - height/weight, - number and ages of dependents, - information on spouse, -date of high school graduation, - contact in case of emergency
  50. Cognitive ability test
    test that measure an individuals thinking, memory, reasoning, verbal, and mathematical abilities
  51. Physical ability tests
    tests that measure an individuals abilities such as strength, endurance, and muscular movement
  52. Psychomotor tests
    tests that measure desterity, hand-eye coordination, arm-hand steadiness and other factors
  53. Work sample tests
    test that require an applicant to perform a simulated taskt hat is specified part of the target job
  54. Situational judgement tests
    tests that measure a person's judgment in work settings
  55. Big 5 personality characteristics
    - conscientousness, - openness to experience, - emotional stability, - extroversion, - agreeableness
  56. Conscientousness
    - achievement oriented, careful, hardworking , organized, responsible
  57. Openness to experience
    - flexible in thought, - open to new ideas, - broad-minded, - curious, - original
  58. Emotional stability
    - neurosis, - depression, - anger, - worry, - insecurity
  59. Extroversion
    - sociable, - gregarious, - talkative
  60. Agreeableness
    - cooperative, - good natured, - softhearted, - tolerant, - trusting
  61. Structured interview
    interview that uses a set of standardized questions asked of all applicants
  62. Type of interview
    - biographical, - behavioral, - competency, - situational, - stress, - nondirective
  63. Biographical interview
    focuses on a chronological assessment of the candidate's past experience
  64. Behavioral interview
    interview in which applicants give specific examples of how they ahve performed a certain task or handled a problem in the past
  65. Situational interview
    structured interview that contains questions about how applicants might handle specific job situations
  66. Nondirective interview
    interview that uses questions developed from the answers to previous questions
  67. Stress interview
    interview designed to create anxiety and put pressure on applicants to see how they respond
  68. Panel interview
    interview in which several interviewers meet with candidate at the same time
  69. Team interview
    interview in which applicants are interviewed by the team members with whom they will work
  70. Negligent hiring
    occurs when an employer fails to check an employee's background and the employee injures someone on the job
  71. Negligent retention
    occurs when an employer becomes aware that an employee may be unfit for work but continues to employ the person and the person injures someone
  72. Selection process for global assignments
    - cultural adjustment, - personal characterisitics, - organizational requirements, - communication skills, - personal/family concerns
  73. Cultural adjustment
    individuals who accept foreign job assignments need to succesfully adjust to cultural differences; - cultural awareness, - cultural adaptability, - diversity acceptance, - global experiences
  74. Personal characteristics
    the experiences of many global firms demonstrate that the best employees in the home country may not be the best employees in a global assignment, primarily because of personal characteristics of individuals; - emotional stability, - ambiguity tolerance, - flexibility and risk taking, - physical stress coping
  75. Organizational requirements
    may global employers find that knowledge of the organization and how it operates is important; - organizational knowledge, - technical abilities, - job-related skills
  76. Communication skills
    expatriate employees should be able to communicate in the host country language both orally and in writing; - language capabilities, - nonverbal awareness, - coaching and listening skills, - conflict resolution abilities
  77. Personal/family concerns
    the preference and attitudes of spouses and other family members can influene the success of expatriate assignments; - personal life demands, - family considerations, - financial/economic concerns, - career development
  78. Training
    process whereby people acquire capabilities to gain the achievement of organizational goals
  79. Types of training
    - required and regular, - job and technical, - interpersonal problem solving, - developmental and career
  80. Knowledge management
    the way an organization identifies and leverages knowledge in order to be competitive
  81. Performance consultin
    process in which a trainer and an organization work together to deide how to improve organizational and individual results
  82. 4 Training process phases
    - assessment phase, - design phase, - delivery phase, - evaluation phase
  83. Assessment phase
    - organizational analysis, - job/task analysis, - individual analysis, - develop training objectives
  84. Organizational analysis
    training needs can be diagnosed by analyzing organizational outcomes and lookin at future organizational needs
  85. Job/task analysis
    review the jobs involved and the tasks performed in those jobs; KSAs
  86. Individual analysis
    diagnosing training needs focuses on individuals and how they perform their jobs. sources: - performance appraisals, - skill tests, - individual assessment tests, - records of critical incidents, - assessment cetner exercises, - questionnaires and surveys, - job knowledge tools, - internet input
  87. Develop training objectives
    established by gap analysis which indicates the distance between where an organization is with its employee capabilities and where it needs to be
  88. 3 types of training objectives
    - attitutde, - knowledge, - skill
  89. Attitude
    creating interest in and awareness of the importance of something (sexual harassment training)
  90. Knowledge
    imparting cognitive information and details to trainees (understanding how a product works)
  91. Skill
    developing behavioral changes in how jobs and various task requirements are performed (improving speed on an installation)
  92. Design phase
    • - learning readiness
    • - learning styles
  93. Learner readiness
    means that individuals have the ability to learn, which many people certainly have
  94. Learner characteristics
    - ability to learn, - motivation, - self-efficacy
  95. Ability to learn
    learners must possess basic skills, such as fundamental reading and math proficiecy and sufficient cognitive abilities
  96. Motivation
    a persons desire to learn training content, referred to as "motivation to learn" is influenced by multiple factors
  97. Self-Efficacy
    which refers to people's belief that hey can succesfully learn the training program content. (must have the ability to believe they can learn a subject) ex: college students who are in math classes have drops in their self-efficacy because they do not believe they can learn the subject
  98. Learning styles
    - vark system, - behavior modeling, - reinforcement
  99. Vark system
    4 distinct learning styles: Visual, Aural/Aduitory, Read/Write and Kinesthetic
  100. Visual
    learners learn best whe ninformation is presented in the visual form such as graphs, charts, and maps
  101. Aural/Auditory
    learner prefer attending lectures, class discussions and group discussions and recall information presented in stories and anecdotes
  102. Readin/Writing
    learners work best with the written word they prefer to learn with lits, dates, essays and books
  103. Kinesthetic
    learners prefer interacting with their information ex;hands on activities
  104. Behavior modeling
    the most elementary way in whic hpeople learn and of the best is through behavioral modeling or copying someone else's behavior. Used extensively as the primary means for training supervisors and managers in interpersonal skills
  105. Reinforcement
    based on the law of effect, which states that people tend to repeat responses that give them some type of positive rewrad and to avoid actions actions associated with negative consequences
  106. Immediate confirmation
    (related to reinforcement) which is based on the idea that people learn best if reinforcement and feedbck are given as soon as possible after training
  107. Transfer of training
    meets two conditions: (1) trainees take the material learned in training and apply it to the job conext in whic hthey work (2) employees maintain their use of theleraned material over time.
  108. Transfer occurs.
    when trainees actually use the knowledge and information they learned in training on the job
  109. Types of training
    - required, - technical, - interpersonal, - problem solving, - orientation
  110. Delivery phase
    - informal, - OJT, - role playing-simulations, - E-learning
  111. Informal (internal source)
    which occurs thorough interactions and feedback among employees
  112. On-the-Job (OJT) training
    most common type of training at all levels in an organization because it is flexible and relevant to what employees do
  113. Stages of OJT
    - prepare the trainees, - present the information, - provide the trainees with practice, - do follow-up
  114. Prepare the trainees
    - put them at ease, - find out what they know, - get them interested
  115. Present the information
    - tell, show, question, - preset one point at at ime, - make sure the trainees know
  116. Provide the trainees with practice
    - have the trainees perform the tasks, - ask questions, - observe and correct, - evaluate mastery
  117. Do-follow up
    - put the trainees on their own, - check frequently, - reduce follow-up as performance improves
  118. Role playing- Simulation
    computer-supported simulations iwthin e-learning can replicate the psychological and behavioral reuquirements of a task often in addition to providing some amount of physical resemblance to the trainee's work environment. ex: pilots and air simulation programs
  119. E-learning
    is the use of the Internet or an organizational intranet to conduct training online. popular with employers and major advantages are cost savings and access to more employees
  120. Advantages of E-learning
    - is self-paced; trainees can proceed on their own time, - is interactive, tapping multiple trainee senses, - enables scoring of exercise/assessments and the appropriate feedback, - incorporates built in guidance and help for trainees to use when needed, - allows trainers to update content relaively easily, - can enhance instructor led training, - is good for presenting simple facts and concepts, - canbe paired with simulation
  121. Disadvantages of E-learning
    - may cause trainee anxiety, - some trainers may not be interested in how it is used, - requires easy and uninterrupted access to computers, - is not appropriate for some training (leadership,cultural changes), - requires significant upfront investment both in time and cost, - requires significant support from top managemetn to be successful, - some choose not to do it even if it is available
  122. Evaluation phase
    - reaction, - learning, - behavior, - results
  123. Reaction
    organizations evaluate the reaction levels of trainees by conducting interviews with or administering questionnaires to the trainees. ex: ask managers to survey and rate the value of training from attending an workshop
  124. Learning
    - learning levels can be evaluated by measuring how well trainees have learned facts, ideas, concepts, theories and attitudes. ex: Tests
  125. Behavior
    - evaluating training at the behavioral level means measuring the effect of training on job performance through observing job performance. ex: managers that attended the workshop will be evaluated as they give actual interviews
  126. Results
    - employers evaluate results by measuring the effect of training on the achievement of organiztional objectives. ex:done by comparing records before and after training
  127. Talent management
    having the right number of people with the right KSAs at the right place and time
  128. Adult learning
    ways in which adults learn differently than younger people
  129. Active practice
    performance of job-related tasks and duties by trainees during training
  130. Spaced practice
    - practice performed ins several sessions spaced over a period of hours or days
  131. Massed practice
    - practice performed all at once
  132. Cross training
    training people to do more than one job
  133. Blended learning
    learning approach that combines methods, such as short, fast-paced, interactive computer-based lessos and teleconferencing with traditional classroom instruction and simulation
  134. Cost-benefit analysi
    comparison of costs and benefits associated with training
  135. Talent Management
    having the right number of people with the right KSAs at the right place and time
  136. Talent management system
    - acquisition, - steps, - results
  137. Acquisition
    recruiting, selection
  138. Steps
    training, career planning, succession planning, development, performance management
  139. Results
    management talent, key job talent, retention
  140. Career
    series of work related positions a person occupies throughout life
  141. Career influencing factors
    • - flatter organizations = more horizontal moves, - growth of project based and team assignments, - mergers, acquisitions & restructuring, -emphasis on self-reliance & lifelong learning,
    • - organizational vs. individual perspective
  142. Organization centered career planning
    career planning that focuses on identifying career paths that provide for the logical progression of people between jobs in an organization
  143. Career paths
    represent employee movments through opportunities over time
  144. Individual centered career planning
    career planning that focuses on an individuals responsibilitiy for a career rather than on organization needs
  145. Career stages
    - early, - mid, - late
  146. Early
    - 20 years +/-, - needs include identifying interests and exploring several jobs, - concerns: external rewards, acquiring more capabilities
  147. Mid
    - 30-40 years, - needs include advancing in career; lifestyle may limit options, growth opportunities, - concerns: values, contribution, integrtity and well being
  148. Late
    - 50 years +/-, - needs include updating skills; individual is settled in; individual is a leader whose opinions are valued, - concern: mentoring, disengaging, organizational continuance
  149. Career plateaus
    those who do not change jobs and only move laterally instead of up, - can get off career plateaus by attending seminars and university courses
  150. Technical & professional workers
    include engineer, scientist, and IT systems experts present a special challenge for organizations
  151. Dual-career ladder
    is a system that allows a person to advance up either a mangement or technical/professional ladder. ex: given special titles if they do not want to move up into the management role
  152. Dual-career couples
    marriages in which both mates are managers , professionals, or technicians have doubled over the past two decades
  153. Recruitment & relocation
    • relocation - must be absolutely necessary because it can upset the couples relationships,
    • recruitment - recruiting an individual to a new location may cause a HR specialist to also look for another job for their couple
  154. Training
    possible to train people new abilities and services; customer service questions, enter data, drive a truck
  155. Development
    efforts to improve employees abilities to handle a variety of assignments and to cultivate employees capabilties beyond those required by current job
  156. Training VS Development
    - focus, - time frame, - effective measures
  157. Training focus
    - learn specific behaviors and actions, - demonstrates techniques and processes
  158. Time frame
    shorter term
  159. Effectivess measures
    • - performance appraisals, - cost benefit analysis, - passing tests,
    • - certification
  160. Development focus
    • - understand information concepts and context,
    • - develop judgements, - expand capacities for assignments
  161. Time frame
    longer term
  162. Effectiveness measures
    - availability of qualified people when needed, - possibility of promotion from within, - HR based ocmpetitive advantage
  163. Development approaches
    - job site methods, - off site methods
  164. Job site methods
    - coaching, - commmittees, - job rotations, - assistant to position
  165. Coaching
    - oldest technique, - which is training and feedback given to employees by immediate supervisors
  166. Committee assignmetns
    - assigning promising employees to importatnt committes may broaden their experiences and help them understand the personalities, issues, and processes governing the organization. ex: employees on safety committee can gain a greater understanding of safety management
  167. Job rotation
    - process of moving a person from job to job used as adevelopment technique. ex: a promising young manager may spend 3 months in a plant, 3 months in corporate planning and 3 months in purchasing
  168. Assistant to positions
    - firms create assistant positions which are staff directly under a manager, meets managers they might have not met
  169. Off-site methods
    - classroom courses, - seminars, - outdoor training, - sabbatical/leave
  170. Classroom courses / Seminars
    - widely acceptable but can be passive, - also send employees to externally sponsored seminars or professional courses
  171. Outdoor training
    - send employees outdoor in the wilderness which can last one day or even seven days or longer is that such experiences can increase self-confidence and help individuals reevaluate personal goals and efforts
  172. Sabbaticals and leave of absence
    - a sabbatical is time of fthe job to develop and rejuvenate onself, some employers provide paid sabbbaticals for socialy desirable projects including leading training programs in ghettos, providing technical assistance in foreign countries and particiapting in corporate volunteer program
  173. Management development
    - experience plays a central role in management development
  174. Management mentoring
    relationship in which experienced managers aid individuals in the earlier stages of their careers
  175. Succession planning
    the process of identifying aplan for hte orderly replacement of key employees
  176. Total Rewards
    all monetary and nonmonetary rewards provided by an organization to attract, motivate and retain valued employees
  177. Types of compensation
    - base pay, - variable pay, - benefits
  178. Base pay
    the basic compensation that an employee receives, usually as a wage or a salary
  179. Variable pay
    compensation linked directly to individual, team, or organizational performance
  180. Benefits
    indirect reward given to an employee or gorup of employees as a part of membership in the organization ex:health insurance
  181. Compensation philosophies
    - entitlement orientation, - performance orientation
  182. Entitlement
    assumes that individuals who have worked anohter year are entitles to pay increases with little regard for performance differences; - seniority-based compensation, - across the board raises, - pay scales increased annually, - industry comparisons of compensation only - holiday bonuses given to all employees
  183. Performance
    requires that compensation changes reflect performance differences; - no raises for length of service or job tenure, - no raises for poor performing employees, - market adjusted pay structures, - broader industry comparisons, - pay linked to performance targets
  184. Economic factors
    - strength or weakness of job market, - ability to pay based on business results
  185. Compensation approach
    - base pay - competency/skill based pay , - base and variable pay, - team based pay
  186. Base pay
  187. Competency / Skill based pay
    rewards individuals for the capabilties they demonstrate and acquire; start at base level pay and and receive increases as they learn
  188. Variable pay
  189. Team-based pay
  190. Equity considerations
    - internal equity, - external equity, - pay openness/secrecy
  191. Equity
    perceived fairness between what aperson does and what the person receives
  192. Internal equity
    employees receive compensation in relation to the knowledge, skills and abiilties they use in their jobs as well as their responsibilities and accomplishments. 2 key issues: procedural and distributive justice
  193. Procedural justice
    perceived fairness of the process and procedures used to make deciisions about emplyees
  194. Distributive justice
    perceived fairness in the distribution of outcomes
  195. External equity
    - employer experiences high turnover, - stuck with less skilled workers due to uncompetitivess, - orgs track external equity by using pay surveys
  196. Pay secrecy
    anohter issue concerns the degree of secrecy that organizations have regarding their payo systems - nondisclosure of compensation
  197. Legal constraints
    fair labor standards act, - lilly ledbetter fair pay act, - equal pay act,- state laws
  198. Fair labor standards act (FLSA)
    - establishes a minimum wage, - child labor provisions, - exempt/non-exempt status, - overtime provisions
  199. Minimum wage
    establishes a minimum wage and can only be changed by congressional action
  200. Child labor provisions
    sets the minimum age for employment with unlimited hours at 16 yrs. - for hazardous minimum is 18, - 14-15 may work outside oschool hours with certain limitations
  201. Exempt employees
    hold positions for which employers are not required to pay overtime; executive, administrative, professional, computer employees, outside sales
  202. Non exempt employees
    must be paid overtime
  203. Overtime
    FLSA established, - pay at one and one-half times the regular pay rate for all hours over 10 a week does not apply to farm workers
  204. Lilly ledbetter fair pay act
    as a result of limited time allowd under law for claiming pay discrimination based on sex, religion, color, disability and othe protected characteristics the lily ledbetter fair pay act was signed by president obama in january 2009
  205. Equal pay act
    of 1963, applies to both men and women and prohibits using different wage scales for men and wome nperforming substiantially the same job
  206. State laws
    garnishment laws occurs when a creditor obtains a court order that decirects an emplyer to set aside a portion of an employees wages to pay a debt owed passed by consumer credit protection act
  207. Developing a base pay system
    - job analysis, job evaluation and pay surveys
  208. Job analysis
    developed using current job descriptions and job specificiations
  209. Job evaluation
    formal systematic means to identify the relative worth of jobs within an organization
  210. Point mehod
    most widely used job evaluation method looks at compensabl efactors in a group of simlar jobs and places weights or ponts on them.
  211. Compensable factor
    identifies a job value commonly present throughout a group of jobs
  212. Hay point system
    uses 3 factors : know-how, problem-solving ability, and accountability
  213. Ranking method
    is a simple system that places jobs in order, from highest to lowest by their value to the organization. - the entire job is considered than individual components generally more appropriate in small organizations with fewer jobs
  214. Pay surveys
    - prepared surveys, - developing a pay survey
  215. Prepared surveys
  216. Developing a pay survey
  217. Develop pay structure
    - develop a market line, - establish pay grades and ranges
  218. Develop a market line
    process ties pay survey information to job evaluation by plotting a market line that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates
  219. Establish pay grades and ranges
    - minimum, - midpoint, - maximum, - broadbanding
  220. Minimum
    20% below market line
  221. Midpoint
    direclty on the market line
  222. Maximum
    20% above the market line
  223. Broadbanding
    practice of using fewer pay grades with much broader ranges than in traditional compensation systems
  224. Individual pay
    - rates out of range, - pay compression
  225. Rats out of range
    - red-circled , - greed-circled
  226. Red circled employee
    is an incumbent who is paid above the range set for the job. ex: employee is paid hgher than everyone in his pay range they would either cut his pay or freeze it until everone catches up
  227. Green circled employee
    is an incumbent who is paid below the range set for a job ex:employee is paid below pay grade so promotions, rapid pay increases, are available to reach pay grade
  228. Pay compression
    which occurs when the pay differences among individuals with defferent levels of experience and performance become small. ex:managers will occasionally pay more for scarce skills
  229. Pay increases
    - pay for performance (merit) matrix, - seniority, - lump sum, - COLA
  230. Pay for performance
  231. Matrix
    a system for integrating appraisal ratings and pay changes must be developed and applied equally
  232. Seniority
    the time spent in an organization or on a partivular job can be used as the basis for pay increases. ex:have policies or ar eautomatic for required lengths
  233. Lump sum
    is a one time payment of all or part of a yearly pay increase
  234. Cost of living adjustments (COLA)
    a common pay-raise practice is the use of a cost of living adjustment. ex: are tied to changes in the consumer price index or other general economic measure
Card Set
HRM 361 Midterm 2 .txt
HRM 361 Midterm 2