Chapter 7

  1. Activity Measures
    Of performance assess work efforts or inputs.
  2. Behaviorally Anchored Rating Scale (BARS)
    Is a performance appraisal approach that describes observable job behaviors, each of which is evaluated to determine good vs. bad performance.
  3. Central Tendency Error
    Occurs when raters lump everyone's performance ratings around the average, or middle, category.
  4. Critical Incident Diary
    Is a method of performance appraisal that records incidents of unusual success or failure for a given performance aspect.
  5. ESOPs
    Allows employees to own stock in their employers business and benefit from future increase in the stock price.
  6. Flexible Benefit Plans
    Are pay systems that allow workers to select benefits according to their individual needs.
  7. Forced Distribution
    Is a method of performance appraisal that uses a small number of performance categories, such as "Very Good", "Good", "Adequate", "Poor", and "Very Poor", and forces a certain proportion of people into each.
  8. Gain Sharing
    Is a pay system that links pay and performance by giving workers the opportunity to share in productivity gains through increased earnings.
  9. Graphic Rating Scale
    Is a scale that lists a variety of dimensions thought to be related to high performance outcomes in a given job and that the individual is expected to exhibit.
  10. Halo Error
    Results when one person rates another person on several different dimensions and gives as similar rating to each one.
  11. Leniency Error
    Is the tendency to give relatively high ratings to virtually everyone.
  12. Low-Differentiation Error
    Occurs when rates restrict themselves to a small part of the rating scale.
  13. Lump-Sum Increases
    Are part of a pay system in which people elect to receive their wage or salary increase in one or more lump-sum payments.
  14. Merit Pay
    Is a compensation system that basis an individuals salary or wage increase on a measure of the person's performance accomplishments during a specific time period or a specified time period.
  15. Output Measures
    Of performance assess actual work results.
  16. Paired Comparison
    Is a comparative method of performance appraisal whereby each person is directly compared with every other person.
  17. Peer Evaluation
    Other members of a work team or persons doing similar jobs rate the individual as a co-worker.
  18. Performance Appraisal
    Is a process of systematically evaluating performance and providing feedback on which performance adjustments need to be made.
  19. Performance Management
    Is the process of managing performance measurement and the associated human resources management decisions.
  20. Personal Bias Error
    Occurs when a rater allows specific biases, such as race, age, or gender, to enter into a performance appraisal.
  21. Profit-Sharing Plans
    Reward employees based on the entire organizations performance.
  22. Ranking
    Is a comparative technique of performance appraisal that involves the rank ordering of each individual from best to worst on each performance dimension.
  23. Recency Error
    Is a biased rating that develops by allowing the individuals most recent behavior to speak for his or her overall performance on a particular dimension.
  24. Self-Evaluation
    Is when the individual rates his or her own performance.
  25. Skill-Based Pay
    Is a system that rewards people for acquiring and developing job relevant skills in number and variety relevant to the organizations needs.
  26. Strictness Error
    Occurs when a rater tends to give everyone a low rating.
  27. 360 Evaluation
    Is a comprehensive approach that uses self-ratings, customer ratings, and ratings by others outside the work unit.
Card Set
Chapter 7
Exam #2