MGT-420 Exam 4 Grand Canyon University Study Guide

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Employee value proposition (EVP) | is an exchange of value in which the organization offers the employee in return for his or her work contributions. The integrated model of individual motivation at ... work | - Reinforcement | immediately rewarding positive behaviors with valued outcomes. - Equity | assuring fairness in type and distribution of rewards. - Content | acknowledging individual differences in motivational value - Expectancy | creating a linkage among ‘effort → performance → reward’ Intrinsic vs. Extrinsic Rewards | - Intrinsic | Positively valued work outcomes that an individual receives directly as a result of task performance. - Extrinsic | Positively valued work outcomes that are given to an individual or group by some other person or source in the work setting. Pay for performance | - When pay functions well it can help organizations attract and retain highly capable workers. - Pay can also help satisfy and motivate workers to work hard to achieve high performance. - When something goes wrong with pay, negative effects on motivation performance may occur. Merit pay | - Compensation system that directly ties an individual’s salary or wage increase to measures of performance accomplishments during a specific time period. - Seeks to create a belief among employees that the way to achieve high pay is to perform at high levels. - Bonus – extra pay for performance that meets certain benchmarks or is above expectations. Gain sharing | Gives workers the opportunity to earn more by receiving shares of any productivity gains that they help to create. (Someone finds a way to save $100,000 and then the boss gives that person $20,000 and everyone else gets the $80,000 spread out. This is done because the money has already been budgeted for so it is used in the company rather than pocketing). Profit sharing | Reward employees for increased organizational profits. - Criticism: organizational profit increases and decreases are not always a direct result of employees’ efforts. Stock options | Provide employees with an opportunity to buy shares of stock at a future date at a fixed price. Employee stock ownership plans (ESOPs) | Companies may give stock to employees or allow stock to be purchased by them at a price below market value. Skill-based pay | Rewards people for acquiring and developing job relevant skills. Two purposes of performance management: | 1. Evaluation | It serves an evaluation purpose when it lets people know where their actual performance stands relative to objectives and standards. 2. Development | It serves a developmental purpose when it provides insights into individual strengths and weaknesses. Performance measurement | - Output Measures | Assess actual work results. - Activity Measures | Assess work inputs in respect to activities Measurement Errors | - Halo Error | Everyone gets a similar rating. “Meets expectation”. - Leniency Error | You want people to like you. You’re very lenient. (First time managers) - Central Tendency Error | Lump everyone in the middle. - Recency Error | (One of most common) Something big happens (good or bad) very recently (end of year) and that makes up the measurement, rather than the performance in whole. - Personal Bias Error | (One of most common) “I just don’t like you.” (Not much else to say.) Performance appraisal | Formal procedure for measuring and documenting a person’s work performance. Comparative Methods of Performance Appraisal | - Ranking | Raters rank order individuals from best to worst on overall performance. - Paired Comparisons | Raters compare each person with every other person. - Forced Distribution | Raters place a specific proportion of employees into each performance standard o Ex. When a team leader must rate 10% of team mem-bers as “superior,” 80% as “good,” and 10% as “unacceptable,” Rating scales | - Graphic | Lists a variety of performance dimensions that an individual is expected to exhibit. - Behavioral | Adds more sophistication by linking ratings to specific and observable job- r ...............................................................................CONTINUED [Show More]

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