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OSHA
Occupational Safety and Health Act
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OSHA Standards
- 1. Appy to general industry, maritime, construction and agriculture
- 2. Cover the workplace, machinery and equipment, material, power sources, processing, protective clothing, first aid, and administrative requirements
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Enforcing OSHA Standards
- 1. Workplace inspections
- 2. Citations and penalties
- 3. On-site consultations
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OSHA first level:
Inspection of imminent danger
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Second level
Inspection of catastrophes, fatalities and serious accidents
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Third level
Investigation of valid employee complaints
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Fourth level
Aimed at high-hazard industries
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Willful
Employer intentionally and knowingly commits or violates OSHA law
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Serious
Violation where death or serious harm could result
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Other than serious
Violation direct relationship to job safety and health, but unlikely to cause death or serious physical harm.
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Right to know laws
Laws that require employers to advise employees about the hazardous chemicals they handle
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MSDS
Documents that contain vital info about hazardous substances
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HCS
Hazard Communication Standard
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Hazard Communication Standard
OSHA published hazardous chemical regulations prescribes a system for communication data on health risks of handling certain materials
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HLPSA
Hazardous Liquid Pipeline and Safety Act
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Recordable case
Occupational death, illness or injury to be recorded in the log
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Elements in creating a safe work environment
- 1. Safety motivation and knowledge
- 2. Enforcement of Safety rules
- 3. Safety awareness programs
- 4. Accident Investigations and records
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Cumulative trauma disorders
Injuries involving tendons of the fingers, hands and arms that become inflamed from rpeatred stresses and strains
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Depression
Negative emotional state marked by feelings of low spirits gloominess sadness and loss of pleasure in ordinary activities
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Stress
Any adjustive deman caused by physical, mental or emotional factors that requires coping behavior
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Eustress
Positive stress that ccompanies achievement and exhileration
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Distress
Harmful stress characterized by a loss of feelings of security and adequacy
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Burnout
Severe stage of distress, manifesting in depression, frustration and loss of productivity
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High demand
- Having too much to do in too short a time
- High effort
- Having to expec too much mental or physical energy over too long a period
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Low control
Too little influence over the way a job is done on a day-to-day basis
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Low reward
Receiving inadequate feedback on performance and no recognition for a job well done.
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Employee Assistance PRograms
- 1. Personal crises
- 2. Depression
- 3. Alcoholism
- 4. Abuse of Illegal drugs
- 5. Abuse of Legal Drugs
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Why was OSHA designed?
To help assure safe and healthful working conditions for everyone working.
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What are key responsibilities of OSHA?
- 1. Sets standards
- 2. Ensures employer and employee compliance
- 3. Providing safety and health consultation and training where needed.
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Crisis management teams
- Teams composed of hourly and managerial employees conduct
- 1. Intitial risk assessment surveys
- 2. Develop action plans to respond to violent situations
- 3. Perform crisis intervention during violent or potentially violent encounters
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Direct compensation
- 1. Wages/salaries
- 2. Commissions
- 3. Bonuses
- 4. Gainsharing
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Indirect Compensation
- 1. Time noto worked
- 2. Insurance plans
- 3. Security plans
- 4. Employee services
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Pay for performance standard
A standard by which managers tie compensation to employee effort and performance
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HRM Compensation functions
- 1. Recruiting
- 2. Selecting
- 3. Training and development
- 4. Compensation management
- 5. Labor relations
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Pay equity
An employee's perception that compensation received is equal to the value of the work performed.
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Hourly work
Work paid on an hourly basis
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Piecework
Work paid according to the number of units produced
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Nonexempt employees
Employees covered by the overtime provisions of the fair labor standards act.
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Exempt employees
Employees not covered by the overtime provisions of the faiir labor standards act
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Consumer price index (CPI)
Measure of the average change in prices over time in a fixed market basket of goods and services.
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Escalator clauses
Clauses in labor agreements that provide for quarterly cost-of-living adjustments in wages, basing the adjustments on changes in the consumer price index
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Real wages
Wage increase larger than rises in the consumer price index, that is, the real earning power of wages
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Common Strategic Compensation Goals
- 1. Reward employees� past performance
- 2. Remain competitive in the labor market
- 3. Maintain salary equity among employees
- 4. Mesh employees� future performance with organizational goals
- 5. Control the compensation budget
- 6. Attract new employees
- 7. Reduce unnecessary turnover
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Job ranking system
Simplest and oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth
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Job classification system
System of job evaluation which jobs are classified and grouped according to a series of predetermined wage grades
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Point system
Quantitiative job evaluation procedure that determines the relaive value of a job by the total points assigned to it
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Work valuation
Job evaluation system that seeks to measure a job�s worth through its values to the organization
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Hay profile method
Job evaluation technique using three factors- knowledge, mental activity and accountability to evaluate executive and managerial positions
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Wage and salary survey
Survey of the wages paid to employees of other employers in the surveying organiztion�s relevant labor market
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Characteristics of key jobs:
- 1. Important to employees and the organization
- 2. Contain a large number of positions.
- 3. Relatively stable job content
- 4. Same job content across many organizations
- 5. Acceptable to employees, management, and labor as appropriate for pay comparisions.
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Wage curve
Scattergram representing the relationship beween relative worth of jobs and wage rates
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Page grades
- Groups of jobs withihn a particular class that are paid the same rate.
- Red circle rates
- Payment rates above the maximum of the pay range
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Competence-based pay
- Pay based on an employee�s skill level, variety of skills possessed or increased job knowledge
- Important compensable situations:
- 1. Downtime or call-in time
- 2. Payment for required classes,, meetings etc.
- 3. Travel between job sites
- 4. Preparation and cleanup before and after shifts
- 5. Break periods are shorter than twenty minutes.
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Fcomparable worth
Concept that male and female jobs that are dissimilar, but equal in terms of value or worth to the employer, should be paid the same
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Chief objectives of benefits programs:
- 1. Improve employee work satisfaction
- 2. Meet employee health and security requirements
- 3. Attract and motivate employees
- 4. Retain top-performing employees
- 5. Maintain a favorable competitive position
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Flexible benefits plans (cafeteria plans)
Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs
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Flexible Benefit planse
Benefit plans that enable indiviRdual employees to choose the benefits that are best suited to their particular needs
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Employee Benefits Required by law
- 1. Social Security Insurance
- 2. Unemployment Insurance
- 3. Workers� compensation
- 4. Consolidated Omnibus Budge Reconciliation (COBRA)
- 5. Family and Medical Leave
- 6. Older Workers Benefit Protection
- Discretionary major employee benefits
- 1. Health care benefits
- 2. Payment for time not worked
- 3. Supplemental unemployment benefits
- 4. Life insurance
- 5. Long term care insurance
- 6. Retirement program
- 7. Pension plan
- 8. Employee assistance program
- 9. Counseling services
- 10. Child and elder care
- 11. Other benefits and services
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Benefit Concerns of Managemnet
- 1. Union demands for additional benefits
- 2. Benefits offered by other employees
- 3. Tax consequences of benefits
- 4. Rising costs of providing benefits
- Health maintenance organizations (HMO)
- Organizations of physicians and health care professionals that provide a wide range of services to subscribers and dependents on a prepaid basis
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Preferred provider organization (PPO)
A group of physicians who establish an organization that gaurentees lower health care costs to the employer
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Consumer �driven health plan (CDHP)
Medical insurance plan financed by employer constributions to an employee�s individual health care spending account.
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Supplemental unemployment benefits (SUBs)
Plan that enables an employee who is laid off to draw in addition to state unemployment compensation, weekly benefits from the employer that are paid from a fund created for this purpose.
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Contributory plan
Pension plan in which contributions are made jointly by employees and employers.
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Noncontributory plan
Pension plan in which contributors are made soley by the employer
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Two categories of pension plans
- 1. According to contributions made by the employer
- 2. According to the amount of pension benefits to be paid
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Vesting
Guarantee or accrued benefits to participants at retirement age, regardless of their employment status at that time
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Employee assistance programs (EAPs)
Services provided by employers to help workers cope with a wide variety of problems that interfere with the way they perform their jobs.
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Elder care
Care provided to an elderly relative by an employee who remains actively at work
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Social Security Act (1935)
- 1. Old age and survivors insurance
- 2. Provides long-term disability benefits
- 3. Must work 40 quarters in an aoccupation covered by act to qualify for benefits
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Performance appraisal
Process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success.
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Performance management
Process of creating a work environment in which people can perform to the best of their abilities.
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2 Purposes for Performance Appraisal
- 1. Developmental
- 2. Administrative
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Developmental purposes for Performance Appraisal
- 1. Provide performance feedback
- 2. Identify individual strengths/weaknesses
- 3. Recognize individual performance
- 4. Assist in goal identification
- 5. Evaluate goal achievement
- 6. Identify individual training needs
- 7. Determine organizational training needs
- 8. Reinforce authority structure
- 9. Allow employees to discuss concerns
- 10. Improve communication
- 11. Provide a forum for leaders to help
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Administrative purposes for performance appraisal
- 1. Document personnel decisions
- 2. Determine promotion candidates
- 3. Determine transfers and assignments
- 4. Identify poor performance
- 5. Decide retention or termination
- 6. Decide on layoffs
- 7. Validate selection criteria
- 8. Meet legal requirements
- 9. Evaluate training programs/progress
- 10. Personnel planning
- 11. Make reward/compensation decisions
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Reasons Appraisals fail
- 1. Lack of top-management information and support
- 2. Unclear performance standards
- 3. Rater bias
- 4. Too many forms to complete
- 5. Use of appraisal program for conflicting (political) purposes.
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What are the performance Standards?
- 1. Strategic Relevance
- 2. Criterion Deficiency
- 3. Criterion Containment
- 4. Reliability
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Strategic relevance
Individual standards directly relate to strategic goals
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Criterion deficiency
Standards capture all of an individual�s contribution
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Criterion contamination
Performance capability is not reduced by external factors
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Reliability (consistency)
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Standards are quantifiable measurable and stable
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Calibration
Process whereby managers meet to discuss the performance of individual employees to ensure their employee appraisals are in line with one another
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Brito v. Zia
Supreme Court ruled that performance appraisals were subject to the same validity criteria as selection procedures.
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Albemarle Paper Company v. Moody
Supreme Court found that employees had been ranked against a vague standard, open to each supervisor�s own interpretation.
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Legal guidelines for performance appraisals
- 1. Must be job related
- 2. Employees must be given a written copy of their job standards in advance
- 3. Managers must be able to observe behavior they are rating.
- 4. Supervisors must be trained to use the appraisal form correctly.
- 5. Should be discussed openly with employees and counseling or corrective guidance offered.
- 6. Appeals procedure should be established
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Who should Appraise Performance?
- 1. Manager/Supervisor
- 2. Self
- 3. Subordinate
- 4. Peer
- 5. Team
- 6. Customer
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Manager /supervisor appraisal
Performance appraisal done by an employee�s manager and often reviewed by a manager on level higher
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Self-appraisal
Performance appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview.
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Subordinate appraisal
Performance appraisal of a superior by an employee which is more appropriate for development than for administrative purposes.
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Peer appraisal
Performance appraisal done by one�s fellow employees generally on forms that are compiled into a single profile for use in the performance interview conducted by the employee�s manager
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Reasons why peer appraisals are not used frequently
- 1. Peer rating are simply a popularity contest
- 2. Managers are reluctant to give up control over the appraisal process
- 3. Those receiving low ratings might retaliate against their peers.
- 4. Peers rely on stereotypes in ratings
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Team appraisal
Performance appraisal based on TQM management concepts, that recognizes team accomplishment rather than individual performance
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Customer appraisal
Performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers
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Safeguards to ensure its maximum quality and acceptance
- 1. Assure anonymity
- 2. Make respondents accountable
- 3. Prevent �gaming� of the system
- 4. Use statistical procedures
- 5. Identify and quantify biases
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How to train appraisers
- 1. Establishing an appraisal plan
- 2. Eliminating Rater Error
- 3. Feedback training
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Error of central tendency
Performance rating error in which all employees are rated about average
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Leniency or strictness error
Performance rating error in which the appraiser tends to give employees either unusually high or unusually low ratings
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Recency error
Performance rating error in which the appraisal is based largely on the employee�s most recent behavior rather than on behavior throughout than on behavior throughout the appraisal period
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Contrast error
Performance rating error in which an employee�s evaluation is biased wither upward or downward because of comparison with another employee just previously evaluated
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Similar-to-me error
Performance rating error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection
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Trait Appraisal methods:
- 1. Graphic rating scales
- 2. Mixed standard scales
- 3. Forced-choice method
- 4. Essay method
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Graphic rating scale method
Trait approach to performance appraisal whereby each employee is rated according to a scale of characteristics
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Mixed-standard scale method
A trait approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard
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Forced-choice method
Trait approach to performance appraisal that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance
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Behavior Appraisal Methods
- 1. Critical incident
- 2. Behavioral checklist
- 3. Behaviorally anchored Rating Scale (BARS)
- 4. Behavior Observation Scale (BOS)
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Critical incident
Unusual event that denotes superior or inferior employee performance in some part of the job
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Behaviorally anchored rating scale (BARS)
Behavioral approach to performance appraisal that consists of a series of vertical scales, one for each important dimension of job performance
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Common rater related errors
- 1. Error of central tendency
- 2. Leniency or strictness errors
- 3. Similar to me errors
- 4. Recency errors
- 5. Contrast and halo errors
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Behavior Observation Scale (BOS)
Behavioral approach to performance appraisal that measures the frequency of observed behavior
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Three reasons why BOS is preferred over BARS
- 1. Maintaining objectivity
- 2. Distinguishing good performers from poor performers
- 3. Providing feedback
- 4. Identify training needs
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Results Appraisal Methods
- 1. Productivity measures
- 2. Management by objectives
- 3. Balanced scorecard
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Management by objectives (MBO)
Philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager
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Balance Score Card segments
- 1. Financial
- 2. Customer
- 3. Processes
- 4. Learning
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Recommendations for ensuring Balanced Scorecard success
- 1. Translate the strategy into a scorecard of clear objectives
- 2. Attach measures to each objectives
- 3. Cascade scorecards to the front line
- 4. Provide performance feedback based on measures
- 5. Empower employees to make performance improvements
- 6. Reassess strategy
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Performance Appraisal methods
- 1. Trait
- 2. Behavioral
- 3. Results
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Pros for Trait methods
- 1. Inexpensive to develop
- 2. Use meaningful dimensions
- 3. Easy to use
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Pros for Behavioral methods
- 1. Use specific dimensions
- 2. Acceptable to employees & superiors
- 3. Useful for providing feedback
- 4. Fair for reward and promotion decisions
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Pros for Results methods
- 1. Less subjectivity bias
- 2. Acceptable to employees & superiors
- 3. Link individual performance to organizational performance
- 4. Encourage mutual goal setting
- 5. Good for reward and promo decisions
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Cons of Trait methods
- 1. High potential for rating errors
- 2. Not useful for employ counseling
- 3. Not useful for allocating rewards
- 4. Not useful for promotion decisions
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Cons of Behavioral methods
- 1. Time-consuming to develop/use
- 2. Costly to develop
- 3. Potential for rating error
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Cons for Results methods
- 1. Time consuming to develop/use
- 2. May encourage a short-term perspective
- 3. May use contaminated criteria
- 4. May use deficient criteria
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Three types of appraisal interviews
- 1. Tell and sell interview
- 2. Tell and listen interview
- 3. Problem solving interview
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Steps to conducting the appraisal interview
- 1. Ask for a self-assessment
- 2. Invite participation
- 3. Express appreciation
- 4. Minimize criticism
- 5. Change the behavior not the person
- 6. Focus on solving problems
- 7. Be supportive
- 8. Establish goals
- 9. Follow up day to day
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Tips for using criticism constructively:
- 1. Consider whether it is really necessary
- 2. Consider the needs of the employee
- 3. Be specific, don�t exaggerate
- 4. Watch your timing
- 5. Make improvement your goal
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Three factors that influence performance
- 1. Motivation
- 2. Environment
- 3. Ability
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Wage rate compression
Compression of pay between new and experienced employees caused by the higher starting salaries of new employees; aslo the differential between hourly workers and their managers
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Make questions for interview
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