Glossary of sasa

Start Studying! Add Cards ↓

Created by sandra1714

Deck Info



Recent Users

Other Decks By This User

Behavioral Criteria
Focus on how work is performed.
• Results criteria:
focus on what was accomplished or produced rather that on how it was accomplished or produced.
360-degree appraisal
When evaluations from supervisors, subordinates, peers, and employees themselves are all used to measure performance.
Anniversary approach
Distributes the task of reviewing performance and providing feedback over the year.
Balanced scorecard approach
Using multiple objective measures that tap into numerous different dimensions of performance.
Behavioral observation scales (BOS)
Ask appraisers to report how frequently employees engage in specific behaviors.
Biometric technologies
Technologies using unique qualities of body parts for identification.
Contaminated performance measure
If the performance measure assesses anything that is unimportant or irrelevant to the job.
Deficient performance measure
If the performance measure does not assess all of the behaviors and results that are important and relevant to the job.
Direct index approach
Measures performance using objective, impersonal criteria, such as productivity, absenteeism, and turnover.
Expectancy theory
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 (e.g., recognition and rewards).
Focal-point approach
Performance measurement for all employees occurs at approximately the same time.
Forced distribution method
The appraiser distributes employees across several categories of performance following a set rule about the distribution of ratings that are permitted.
Instrumentality Management by objectives (MBO)
Begins with the establishment of performance objectives (goals) for the upcoming performance period; performance is then measured against the objectives that were set.
Has two elements: (1) decisions about which behaviors to engage in and (2) decisions about how much effort to expend.
Norm-referenced format
The rater is forced to evaluate the individual or team and make comparisons to others.
Performance appraisal
Involves evaluating performance based on the judgments and opinions of subordinates, peers, supervisors, other managers, and even the employees themselves.
Performance criteria
The dimensions against which the performance of an incumbent, a team, or a work unit is evaluated.
Performance-driven culture
A culture that depends on effective performance management.
Positive reinforcement
Involves the use of positive rewards to increase the occurrence of the desired performance.
Decreases the frequency of undesirable behavior
Results criteria
Focus on what was accomplished or produced rather than on how it was accomplished or produced.
When employees assess their own performance.
Straight ranking
The appraiser lists the focal employees (or teams of employees) in order, from best to worst, usually on the basis of overall performance.
Trait-based criteria
Focus on personal characteristics, such as loyalty, dependability, communication ability, and leadership.
Upward appraisal
When surveys are used to evaluate the performance of specific managers, the process.
Question is, how much do I value the consequences associated with the intended behavior?
Base pay
Refers to the wage or salary an employee receives, exclusive of any incentive pay or benefits.
Benchmark jobs
Jobs commonly found across a range of organizations and they involve essentially the same work and responsibilities regardless of the company.
Refers to the use of pay structures that have very few (e.g., three to five) pay grades.
Comparable worth
Based on the principle that pays for even dissimilar jobs should be equal if the jobs have a similar overall value to the organization.
Compensable factors
The dimensions of work that an organization chooses to use when establishing the relative value of jobs.
Compensation survey
Used by employers to obtain data about pay rates in the external labor market.
Competency-based job evaluation
Keeps the focus on the job, but emphasizes the competencies needed to perform the job, rather than the job duties.
Equal Pay Act
Prohibits an employer from discriminating between employees on the basis of sex by paying wages to employees . . . at a rate less than the rate at which he pays wages to employees of the opposite sex . . . for equal work on jobs the performance of which requires equal skill, effort and responsibility, and which are performed under similar working conditions.
Exempt employees
Are not covered by the minimum wage or overtime provisions of the FLSA.
External pay equity
Exists when employees feel they are being paid fairly relative to what people in similar jobs (or with similar competencies) are paid by other employers.
Fair Labor Standards Act (FLSA)
Sets minimum wages, maximum hours, child labor standards, and overtime pay provisions for most employees.
Individual pay equity
Established when the individual perceives that he or she is paid fairly compared to others in the same organization with the same job.
Industry unionization
The percentage of organizations in the industry that are unionized.
Internal pay equity
Employees should perceive that they are paid fairly compared to others in the same organization, given the contributions that they and others make to the organization.
Job classification method
First groups jobs into a smaller set of job classes and then the job classes (not individual jobs) are ranked according to their value of importance to the organization.
Job evaluation
A procedure for establishing the relative internal worth of jobs.
Job ranking method
Involves simply placing jobs into a rank order according to their perceived overall value or importance.
Job-based pay structure
The pay people receive is determined primarily by the job they hold.
Lag policy
Where the organization intentionally pays below the market.
Lead policy
Indicates that the organization intends to pay somewhat above the market rate.
Market pay policy
Established by plotting pay rates against the evaluation points that the company assigned to the benchmark jobs.
Monetary compensation
Includes direct payments such as salary, wages, and bonuses, and indirect payments such as payments to cover benefits and services.
Nonexempt employees
Employees who are protected by the FLSA.
Nonmonetary compensation

Includes many forms of social and psychological rewards recognition and respect from others, enjoyment from doing the job itself, opportunities for self-development, and so on.
Organization pay policy

Specifies the pay rates that will be used for the jobs in a particular organization.
Pay fairness
Refers to what people believe they deserve to be paid in relation to what others deserve to be paid.
Pay mix
The way an organization distributes pay among all elements of total compensation, including monetary versus nonmonetary elements.
Pay satisfaction
The amount of positive or negative feelings employees have toward their pay.
Pay structure
Combines job evaluation information and information about market pay rates in order to establish a policy that specifies the base pay of employees in each job.
Point factor rating method
Uses a sophisticated system for assigning values to jobs based on numerical ratings of job elements.
Salary budget surveys
Estimate the amount of salary increases for the coming year.
Shadow range
A temporary readjustment that expands the size of the minimum and maximum pay rates associated with a pay grade.
Total compensation
Refers to the monetary and nonmonetary rewards offered to employees.
Involves changing the option date after the stock is issued to a date when stock prices were particularly low, which maximizes the option value.
Combined distribution plans
Distribute a portion of profits immediately to employees, setting the remaining amount aside in a designated account.
Refers to pay based on a percentage of the sales price of the product.
Current distribution plans
Provide a percentage of profits to be distributed quarterly or annually to employees.
Deferred distribution plans
Place earnings in an escrow fund for distribution upon retirement, termination, death, or disability.
Differential piece-rate plan
More than one rate of piecework pay is set for the same job.
Earnings-at-risk pay
Base pay is set below the market average and a large portion of total earnings are paid based on performance.
Eligibility rules
The rules used to determine which employees are covered by the various pay practices.
Employee stock ownership plans (ESOPs)
Grant shares of stock to employees, frequently as a means of long-term savings and retirement.
Incentive pay
Pegs base pay near the market average and employees earn additional monetary compensation for excellent performance.
A term managers often use to refer to the amount of influence an employee has on a performance measure.
Lump sum merit
Ties performance appraisals to lump sum bonuses rather than to raises.
Performance-based pay
Recognizes that people working in 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.
Profit-sharing plans
Any system 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.
Spot awards
Granted on the spot to recognize employees for performing beyond the call of duty.
Standard hour plan
Sets a standard time for each unit of production and uses this time unit to determine how much employees are paid.
Stock appreciation rights (SARs)
Grant employees’ cash or stock awards based on the increase in the stock price over a specified time.
Stock option
Gives an employee the right to buy stock during a specified time period or under other specified conditions.
Straight piecework plan
Employees are guaranteed a standard pay rate for each unit.
Variable pay
Cash rewards that are tied to some aspect of performance and paid in lump sums rather than as raises.

Add Cards

You must Login or Register to add cards