WGU C202 Managing Human Capital Exam Questions and Answers Latest (2024 / 2025) (Verified Answers by Expert)
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TermText TermText 2
Direct financial compensation compensation received in the form of salary, wages, commissions, stock options or bonuses
indirect financial compensation all the tangible and financially valued rewards that are not included in direct compensation including free meals, vacation time and health insurance
nonfinancial compensation rewards and incentives given to employees that aren’t financial in nature
base pay reflects the size and scope of an employee’s responsibilities
severance pay give to employees upon termination of their employment
fixed pay pays employees a set amount regardless of performance
variable pay bases some or all of an employee’s compensation on employee, team, or organizational
pay structure the array of pay rates for different work or skills within a single organization
pay mix the relative emphasis give to different compensation components
pay leader organization with a compensation policy of giving employees greater rewards than competitors
pay follower an organization that pays its front-line employees as little as possible
resource dependence theory proposition that organizational decisions are influenced by both internal and external agents who control critical resources
wage differentials differences in wage between various workers, groups of workers, or workers within a career field
labor market all of the potential employees located within a geographic area from which the organization might be able to hire
cost of living allowances clauses in union contacts that automatically increase wages base on the U.S. Bureau of Labor Statistics’ cost of living index
market pricing uses external sources of information about how others are compensating a certain position to assign value to a company’s similar job
Compensation surveys surveys of other organizations conducted to learn what they are paying for specific jobs or job classes
benchmark jobs jobs that tend to exist across departments and across diverse organizations allowing them to be used as a basis for compensation comparisons
job evaluation a systematic process that uses expert judgement to assess differences in value between jobs
ranking methos subjectively compares jobs to each other based on their overall worth to the organization
job classification method subjectively classifies jobs into an exiting hierarchy of grades and categories
point factor method uses a set of compensable factors to determine a job’s value. skill, resp, effort, working cond.
compensable factor any characteristic used to provide a basis for judging a job’s value
skills, responsibilities, effort, working conditions Four categories of compensable factors
Hay Group Guide Chart – Profile Method a point-factor system is used to produce both a profile and a point score for each position.know howproblem solvingaccountabilityworking conditions
Know-how, problem solving, accountability, working conditions Hay Group Method based on four main factors
Position Analysis Questionnaire a structured job evaluation questionnaire that is statistically analyzed to calculate pay rates based on how the labor market is valuing worker characteristics. a copyrighted, standardized, structured job analysis questionnaire. 6 sections covering 187 job elements.
job pricing the generation of salary structures and pay levels for each job based on the job evaluation data
single rate system, pay grades and broadbanding Three most common job pricing systems
pay grade (pay scale) the range of possible pay for a group of jobs
broadbanding using very wide pay grades to increase pay flexibility
internal equity when employees perceive their pay to be fair relative to the pay of other jobs in the organization
employee equity the perceived fairness of the relative pay between employees performing similar jobs for the same organization
external equity when an organization’s employees believe that their pay is fair when compared to what other employers pay their employees who perform similar jobs
comparable worth if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them
wage rate compression starting salaries for new hires exceed the salaries paid to experienced employees
golden parachute lucrative benefits given to executives in the event the company is taken over
Cost-of-living adjustments pay increases to account for a higher cost of living in one country versus another
Housing allowance payments to subsidize or cover housing and related costs
hardship premiums increased salary for living in an area with a lower quality of life, less safety, etc.
tax equalization payments increased salary to make up for higher taxes that reduce take-home pay and decrease employee’s purchasing power
inflation adjustments larger and/or more frequent raises to maintain employee’s purchasing power in the face of inflation
Fair Labor Standards Act of 1938 a federal law that sets standards for minimum wages, overtime pay, and equal pay for men and women performing the same jobs
exempt employees employees who meet one of the FLSA exemption tests, are paid on a fixed salary basis and are not entitled to overtime pay
non-exempt employees employees who do not meet any of one of the FLSA exemption tests and are paid on an hourly basis and covered by wage and hour laws regarding minimum wage, overtime pay and hours worked
workers’ compensation a type of insurance that replaces wages and medical benefits for employees injured on the job in exchange for relinquishing the employee’s right to sue the employer for negligence
fixed rewards predetermined compensation (salary and benefits)
variable rewards (incentives) “””at risk”” rewards which are linked to factors determined as valuable, including performance, skills, competence and contribution”
- Recognize and reward high performers- Increase the likelihood of achieving corporate goals- Improve productivity- Move away from an entitlement culture Top four reasons organizations give for tying pay to performance ar
- Preference of individual employees- Size of the rewards for high performance- Method of motivating individual job performance- Objectivity of the evaluation process that determines the rewards Before designing an incentive pay plan to motivate performance, it is important to consider the
- Company performance- Reduced merit increases- Reductions in head count- Reduced benefits- Pay freezes Most common way employers fund variable pay programs
reward differnentiation differentiating rewards based on performance rather than giving all employees the same reward
short-term incentives one-time variable rewards used to motivate short-term employee behavior and performance (typically one year or less). ie bonus or profit sharing. to motivate attendance, cust serv, safety, production quality and quantity
profit sharing the distribution of organizational profits to all employees
stock options the right of an employee to buy shares of the company’s stock at a certain price (the exercise price) during some future period of time
long-term incentives incentives that motivate behaviors and performance that support company value and long-term organizational health. ie stock options
vesting the point at which employees can sell or transfer the stock option
pay for performance programs rewards employees based on some specific measure of their performance
variable pay plans pay for performance plans that put a small amount of base pay at risk, in exchange for the opportunity to earn additional pay if performance meets or exceeds a standard
spot awards awards given immediately when a desired behavior is seen
extrinsic motivation motivation that comes from outside the individual, including performance bonuses
intrinsic motivation derived from an interest in or enjoyment from doing a task
skill-based pay rewards for employees based on the range and depth of their knowledge and skills. effort and coop w/supervisorlimited ability, partial proficiency, full competence
limited ability ability to perform simple tasks without direction
partial proficiency ability to apply more advanced principles on the job
full competence ability to analyze problems associated with the job
competency-based pay skill-based pay for professional jobs
multi-crafting employees gain proficiency in two or more trades
recognition awards rewards for specific achievements like tenure with the organization, helping a coworker or attendence
compressed workweek 40 hour work week in less than five days
job sharing two or more people split a single job
flextime scheduling option that lets employees decide when to work within parameters
telecommuting allows employees to work from home and link to the company’s offices via computer.
gainsharing a program in which the firm shares the value of productivity gains with employees
scanlon plans gainsharing programs based on implementing employee suggestions for lowering the cost per unit produced
improshare a gainsharing plan based on a mathematical formula that compares a performance baseline with actual productivity during a given period with the goal of reducing production time
employee stock ownership plans tax-exempt, employer-established employee trusts that hold company stock for employees
errors of commission an employee receives an undeserved reward
errors of omission an employee who deserves a reward doesn’t receive one
employee benefits nonwage compensation or rewards given to employees (indirect compensation)
Social Security, Unemployment Insurance, Workers’ Compensation, Family Medical Leave Act, COBRA 5 Mandatory Benefits
Social Security provides retirement income to qualified workers and their spouses after working a certain number of hours
unemployment insurance provides temporary income during periods of involuntary unemployment
workers’ compensation insurance pays for medical costs and sometimes time off if an employee suffers a job-related sickness or accident, and survivor benefits in the case of an employee’s death in exchange for relinquishing the employee’s right to sue the employer for negligence
Family and Medical Leave Act of 1993 requires most employers to provide employees up to 12 weeks of unpaid leave to care for family members
Consolidated Omnibus Budget Reconciliation Act provides a continuation of group health coverage for employees and qualified beneficiaries that might otherwise be terminated when an employee experiences a qualifying event
Customary benefits commonly provided benefits that are viewed as an entitlement by employeesinsurance, retirement plans
Life Insurance pays a beneficiary or beneficiaries a sum of money after the death of an insured individual
Disability insurance supplements workers’ compensation insurance to provide continued income in the event of an employee becoming disabled
health insurance health care coverage for employees and their dependents
presenteeism an employee physically comes to work but does not function at his or her full potential
defined benefit retirement plans promise participants a monthly benefit at retirement
Employee Retirement Income Security Act of 1974 a federal law that protects employees’ retirement benefits from mismanagemen
domestic partners two people who are not married, but are in a same-sex or opposite-sex arrangement similar to marriage
flexible spending account an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pretax basis
total compensation statement communicating total compensation in detail through a written summary of employee direct and indirect compensation
flexible benefits plans give employees a set amount of credits or dollars to allocate among different benefits options provided by the employer
safety culture the shared safety attitudes, beliefs and practices that shape employees’ safety behavior
ergonomics designing the work environment to reduce the physical and psychological demands placed on employees
cumulative trauma disorders skeletal and muscle injuries that occu when the same muscles are used to preform tasks repetitively
Occupational Safety and Health Administration created by the Occupational Safety and health Act to set and enforce protective workplace safety and health standards
OSHA standards rules describing the methods employers must legally follow to protect their workers from hazards
-Imminent danger situations-Fatalities & Catastrophes- Complaints- Referrals of hazard information from others-Follow-ups-Planned or programmed investigations Order of Priority for OSHA Inspections
Employee Wellness Programs any initiative designed to increase company performance or employee performance or morale through improved employee health
wellness incentives rewards for engaging in healthy behavior or participating in wellness programs
functional stress manageable levels of stress that generate positive emotions including satisfaction, excitement and enjoyment
dysfunctional stress an overload of stress resulting from a situation of under- or over-arousal continuing for too long
problem-focused coping strategies deal directly with the cause of stress
emotion-focused coping strategies focus on the emotions brought on by the stressor
workplace bullying a repeated mistreatment of another employee through verbal abuse; conduct that is threatening, humiliating or intimidating; or sabotage that interferes with the other person’s work
workplace violence any act of threat of physical violence, harassment, intimidation or other threatening disruptive behavior that occurs at the workplace - Human resources- Physical resources- Business continuity Disaster plans should cover:
labor union a group of at least two employees who band together as a single entity to address pay, hours, and working conditions with their employer
collective bargaining when the employer and union negotiate in good faith on wages, benefits, work hours and other employment terms and conditions
Industrial Unions unions composed primarily of semi-skilled employees in manufacturing industries
Trade Unions unions composed primarily of skilled employees in a single trade
Employee associations union of professional employees
National Labor Relations Act of 1935 (Wagner Act) guarantees the right of nonmanagerial employees of firms engaged in interstate commerce to join unions and bargain collectively
Railway Labor Act act that governs employment relations for airlines and railroads
National Labor Relations Act of 1947 (Taft-Hartley Act) amended the Wagner Act to clarify what are considered unfair labor practices by unions and employees
right to work laws state laws that prohibit union shops in which all workers in a unionized workplace must join the union and pay dues
union shops all workers in a unionized workplace are forced to join the union and pay dues
closed shop shop that exclusively employs people who are already union members. Taft-Hartley Act made this illegal.
agency shop shop that requires nonunion workers to pay a fee to the union for its services in negotiating their contracts
open shop shop that does not discriminate based on union membership in employing or keeping workers.
Labor Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act) act that outlined a Bill of Rights for union members and sets up procedures for union elections, discipline and financial reporting
card check employees sign a card of support if they are in favor of unionization.
50% If at least _ of workers sign a union authorization card, the NRLB requires the employer to recognize the union without a secret ballot election decertification election an election to determine if a majority of employees want to no longer be represented by a union hard bargaining taking a strong position on an issue surface bargaining going through the motions of negotiations with no intent of reaching an agreement collective bargaining agreement a legal written contract between organized labor and an employer that is enforceable through the negotiated grievance and arbitration procedure Permissive subjects may be negotiated but don not have to be.
Mandatory subjects are those required by The National Labor Relations Board.
Illegal subjects may not be negotiated.
mandatory wages, overtime, seniority, grievance procedures, safety and work practices, procedures for layoff, recall, discharge and discipline are subjects.
permissive Definition of bargaining unit, retiree health insurance or pension, ground rules, settlement of grievances or charges, drug testing, labeling are subjects.
illegal proposals to discriminate, union shop clauses in right to work states, closed shop clauses, handing goods produced by nonunion companies are __ subjects. - right to identify business objectives – right to determine the uses of material assets- right to take disciplinary action for cause Management rights cover three areas:
negotiation a process in which two or more parties make offers, counteroffers and concessions in order to reach an agreement
distributive negotiation occurs under zero-sum conditions, where any gain to one party is offset by an equivalent loss to the other party
integrative negotiation a win-win negotiation in which the agreement involves no loss to either party - Separate people from the problem – Focus on interests, not positions- Create options for mutual gain- Insist on objective criteria Four fundamental principles of integrative negotiation:
mediation using a neutral third party to attempt to resolve the dispute through facilitation
arbitration an impartial third party acts as both judge and jury in imposing a binding decision on both negotiating parties
rights arbitration covers disputes over the interpretation of an existing contract and is often used in settling grievances
interest arbitration resolves disputes over the terms of a collective bargaining agreement currently being negotiated
strikes union members refuse to work, halting production or services
unfair labor practice strikes strike protesting illegal employer activities
economic strikes strike over disputes regarding wages or benefits
recognition strikes strikes intended to force employers to recognize unions
jurisdictional strikes strikes affirming members’ right to certain job assignments and protest the work assignments to another union or to unorganized employees
boycott union members refuse to use or buy the firm’s products to exert economic pressure on management
secondary boycott when a union encourages third parties such as customers and suppliers to stop doing business with a company. Taft-Hartley Act makes these illegal.
lockout management keeps employees away from the workplace and uses management staff or replacements to run the business
dysfunctional conflict that focuses on emotions and differences between both parties
collaborating, accommodating, competing, compromising, avoiding Five conflict management strategies
collaborating attempting to work with the other person to find some solution which fully satisfies the concerns of both parties
accommodating neglecting one’s own concerns to satisfy the concerns of the other person
competing pursuing one’s own concerns at the the other person’s expense
compromising trying to find some expedient, mutually acceptable middle ground solution which partially satisfies both parties
avoiding not immediately pursuing one’s own concerns or those of the other person and not addressing the conflict
labor relations strategic plan identifies the labor relations goals desired individually or jointly by labor and management, determines the best strategy to reach those goals, and develops and executes the actions needed to implement that strategy
compliance strategy, collaboration strategy, avoidance strategy Three primary labor relations strategies
compliance strategy strategy that relies heavily on the application of labor law to enforce the rights and obligations created by statute and by contract
collaboration strategy strategy that relies heavily on labor relations to pursue an interest-based approach to problem solving
avoidance strategy strategy in which management engages in lawful or unlawful efforts to prevent a union from forming or seeks the decertification of an existing union
Weingarten rights rights that guarantee employees the right to union representation during investigatory interviews by the employer
cost-of-living adjustments pay tied to inflation indicators rather than merit
works councils council of elected workers that participate in shared workplace governance
codetermination worker representation on the company’s board of directors
organizational citizenship behaviors discretionary behaviors that benefit the organization but that are not formally rewarded or required
employee engagement when employees are committed to, involved with, enthusiastic and passionate about their work
organizational commitment the extent to which an employee identifies with the organization and its goals and wants to stay with the organizationaffective, normative, continuance
affective commitment a positive emotional attachment to the organization and strong identification with its values and goals
normative commitment feeling obliged to stay with an organization for moral or ethical reasons
continuance commitment staying with an organization because of perceived high economic and/or social costs involved with leaving
burnout exhaustion of physical or emotional strength or motivation usually as a result of prolonged stress or frustration
voluntary turnover the separation is due to the employee’s choice
involuntary turnover the separation is due to the organization asking the employee to leave
functional turnover the departure of poor performers
dysfunctional turnover the departure of effective performers the company would have like to retain
avoidable turnover turnover that the employer could have prevented
unavoidable turnover turnover that the employer could not have prevented
optimal turnover the turnover level producing the highest long-term levels of productivity and business improvement
downsizing a permanent reduction of multiple employees intended to improve the efficiency or effectiveness of the firm
employment at will an employment relationship which either party can legally terminate at any time for just cause, no cause, or evan a cause that is morally wrong as long as it is not illegal
exit inteviews asking separated employees why they left to acquire information that can be used to improve conditions for current employees
mobility barriers factors that make it harder to leave an organization
succession management an ongoing process of systematically identifying, assessing and developing organizational leadership to enhance performance
succession management plans written policies that guide the succession management process
replacement planning identifying specific back-up candidates for specific senior management positions
skill inventories tracks employees’ competencies and work experiences in a searchable database
mobility policies policies that specify the rules by which people move between jobs within an organization
workforce redeployment the movement of employees to other parts of the company or to other jobs the company needs filled to match its workforce with its talent needs
active job seeker someone actively looking for information about job opportunities
semi-passive job seeker someone at least somewhat interested in finding a new job but inconsistently looks for one
passive job seeker someone not actively looking for a new job but who could be tempted by the right opportunity
internal recruiting source locates talent currently working for the company that would be a good fit with another position
external recruiting source targets people outside the organization
succession management the ongoing process of preparing employees to assume other positions in the organization
talent inventory manual or computerized records of employee’s relevant characteristics, experiences and competencies
internal job posting systems communicate information about internal job openings to employees
careers site the area of an organization’s website devoted to jobs and careers with the company
internet data mining proactively search the internet to locate semi-passive and passive job seekers with the characteristics and qualifications needed fore a position
job fairs a place where multiple employers and recruits meet to discuss employment opportunities
offshoring opening a location in another country or outsourcing work to an existing company abroad
observation watching people working in similar jobs for other companies to evaluate their ptoential fit with your organization
Online job boards an internet site that helps job seekers and employers find one another
resume databases searchable database of prescreened resumes
search firms an independent company that specializes in the recruitment of particular types of talent
recruiting the set of practices and decisions that affect either the number or types of individuals willing to apply for and accept job offers
recruitment spillover effects the positive or negative unintended consequences of recruiting activities
applicant tracking system software that helps manage the recruiting process
efficiency oriented recruiting metrics track how efficiently a firm is hiring
strategic recruiting metrics recruiting metrics that track recruiting processes and outcomes that influence the organization’s performance, competitive advantage or strategic execution
Realistic job previews presenting both positive and potentially negative information about a job in an objective way. 3 funcs served: self selection, vaccination (coping mechanism), commitment to the choice
Organizational image people’s general impression of an organization based on both feelings and facts
employer image an organization’s reputation as an employer
brand symbolic picture of all the information connected to a company or a product including its image
employer brands summary of what an employer offers to employees
selection the process of gathering and evaluating the information used for deciding which applicants will be hired
person-job fit the fit between a person’s abilities and the job’s demands and the fit between a person’s desires and motivations and the job’s attributes and rewards
person-group fit match between an individual and his or her workgroup and supervisor
person-organization fit fit between an individual’s values, attitudes, and personality and the organization’s values, norms and culture.
screening assessment methods reduce the pool of job applicants to a group of job candidates. ie resumes, job applications, phone screens.
evaluative assessment methods evaluate job candidates to identify whom to hire. ie psychomotor tests, cognitive ability test, non-cog ability test, personality assessment, integrity tests, job knowledge test, structured interview, unstructured interview, work samples, simulations, assessment center
contingent assessment methods a job offer is made contingent on passing the assessment.ie ref checks, med & drug tests, background checks
job applications written information about skills and education, job experiences and other job relevant information. screening method.
cognitive ability test assess general mental abilities including reasoning, logic and perceptual abilities. evaluative method.
sensory tests assess visual, auditory and speech perception
psychomotor tests assess strength, physical dexterity and coordination
Extraversion, conscientiousness, emotional stability, agreeableness, openness to experience The Big Five Personality factors are:
integrity tests assess attitudes and experiences related to reliability, trustworthiness, honesty and moral character
job knowledge tests measure the knowledge (often tehnical) required by a job
Unstructured interviews varying questions are asked across interviews and there are usually no standards for evaluating answers
structured interview uses consistent, job-related questions with predetermined scoring keys. behavioral or situational.
behavioral interview uses information about what the applicant has done in the past to predict future behavior
situational interviews asks how the candidate might react to hypothetical situations
case interview the candidate is given a business situation, challenge or problem and asked to present a well thought out solution
work samples evaluate the performance of actual or simulated work tasks
simulation a type of work sample that gives candidates an actual job task to perform or simulates critical events that might occur to assess how well a candidate handles them
assessment center puts candidates through a variety of simulations and assessments to evaluate their potential fit with and ability to do the job. ie inbasket exercises, grp disc, simulations, dec-make probs, oral presentation, written comm
background checks assess factors including personal and credit characteristics, character, lifestyle, criminal history and reputation. contingent method.
multiple hurdles candidates must receive a passing score on an assessment before being allowed to continue in the selection process
compensatory approach high scores on some assessments can compensate for low scores on other assessments
cut score a minimum assessment score that must be met or exceeded to advance to the next assessment phase or to be eligible to receive a job offer
distributive fairness the perceived fairness of the outcomes received
procedural fairness the perceived fairness of the policies and procedures used to determine the outcome
interactional fairness the degree of respect and the quality of the interpersonal treatment received during the decision-making process
explicit employment contract a written or verbal employment contract
implicit employment contract an understanding that is not part of a written or verbal contract
offer contains the terms and conditions of employment as proposed by the employ and usually specific requirements for accepting the offer such as a signature and a deadline
acceptance a clear expression of the accepting party’s agreement to the terms of the offer
consideration bargained-for exchange between the contract parties – something of value must pass from one party to the other
training formal and informal activities to improve competencies relevant to an employee’s or workgroup’s current job
development focuses on developing competencies that an employee or workgroup is expected to need in the future - Conduct a Needs Assessment- Develop Learning Objectives- Design the Training Program- Implement the Training- Evaluate the Training Five Steps to Effective Training
Needs assessment the process of identifying any gaps between what exists and what is needed in the future in terms of employee performance, competencies and behaviors. org, task, person analysis
Organizational analysis, task analysis and person analysis Three levels of needs assessments
Organizational needs analysis identifies where in the organization development or improvement opportunities exist
task needs analysis focuses on identifying which jobs, competencies, abilities, behaviors, etc. the training effort should focus on
organizational needs Strategic Plans/Performance appraisals/customer surveys/employee surveys/restructuring plans/efficiency measures: sources for collecting __ analysis information
task needs job or competency analysis/observation/performance appraisals/quality control analysis: sources for collecting _ analysis information
person needs analysis evaluates how individual employees are doing in the training area and determines who needs what type of training
person needs Performance appraisals/customer surveys/individual assessments/performance issues/skill inventories: sources for collecting _ analysis information
learning objectives created to identify desired learning outcomes.types: cognitive, affective, and psychomotor
Cognitive, Affective, Pschomotor Three types of learning objectives
Cognitive Learning Objectives Learning objectives that increase some type of knowledge
Affective Learning Objectives learning objectives that change an attitude, relationship or appreciation
Psychomotor learning objectives that build a physical skill
R – U – A – A- E – C- Remembering – Understanding- Applying- Analyzing- Evaluating- Creating Taxonomy of Cognitive Learning Objectives
R – R – V – O – C- Receiving- Responding- Valuing- Organization – Characterization by value Taxonomy of Affective Learning Objectives
O – I – P – A – O- Observing- Imitating – Practicing – Adapting – Originating Taxonomy of Psychomotor Learning Objectives
Lifelong learning a formal commitment to ensuring that employees have and develop the skills they need to be effective in their jobs today and in the future
aptitude-treatment interactino the concept that some training strategies are more of less effective depending on a learner’s particular abilities, personality traits and other characteristics
learning style how people differ in how we process information when problem solving or learning
sensory modality a system that interacts with the environment through one of the basic senses. visual, auditory, tactile, kinetic.
visual, auditory, tactile, kinesthetic Four different sensory modalities
Visual sensory modality: learning by seeing
Auditory sensory modality: learning by hearing
Tactile sensory modality: learning by touching
Kinesthetic: sensory modality: learning by doing
discovery learning, experiential learning, observational learning, structured learning, group learning Five Key learning preferences
discovery learning a learning preference for exploration during learning. Prefer subjective assessments, interactional activities, informational methods and active-reflective activities
experiential learning a learning preference with a desire for hands-on approach to instruction. tend to prefer active learning activities
observational learning a learning preference for external stimuli such as demonstrations and diagrams to help facilitate learning. tend to prefer information and active-reflective activities
structured learning a learning preference for processing strategies such as taking notes, writing down task steps and so forth. related to preferences for subjective assessments.
group learning a learning preference to work with others while learning. Related to preferences for action and interactional learning.
training evaluation systematically collecting the information necessary to make effective decisions about adopting, improving, valuing, and continuing an instructional activity or set of activities
participant reactions, learning assessments, training transfer back to job Training evaluation includes:
Kirkpatrick’s training evaluation model Most well known and frequently used model for assessing training effectiveness.reaction, learning, behavior, results
Reaction, Learning, Behavior, Results Kirkpatrick’s four levels of training and learning evaluation
[(Training Benefits – Training cost)/Training Cost] x 100 Equation for ROI%
Training transfer effectively using what is learned in training back on the job
closed skills skills performed similarly or exactly like they are taught in training
open skills sets of principles that can be applied in many different ways
self-management strategies person’s effort to control his or her motivation, emotions and decision making to enhance the application of learned capabilities to the job
reinforcers anything that makes a behavior more likely to happen again
positive reinforcement, negative reinforcement, punishment, extincition Four type of reinforcers
positive reinforcement reinforcer: using rewards to increase the likelihood that a behavior will be repeated
negative reinforcement reinforcer: removing current or future unpleasant consequences to increase the likelihood that someone will repeat a behavior.
punishment reinforcer: creating negative outcomes to decrease the likelihood of a behavior
extinction reinforcer: removal of any positive or negative reinforcement following the occurrence of the behavior to be extinguished decreases the likelihood of that behavior
Orientation training activities to help new hires fit in as organizational members
socialization a long-term process of planned and unplanned, formal and informal activities and experiences through which an individual acquires the attitudes, behaviors and knowledge needed to successfully participate as an organizational member
Anticipatory, Encounter, Settling In Three phases of Socialization
collective socialization newcomers go through a common set of experiences as a group
individual socialization newcomers are socialized individually as in an apprenticeship
formal socialization structured socialization using specifically designed activities and materials awayfrom the work setting
informal socialization unstructured, on-the-job socialization done by coworkers
sequential socialization the degree to which socialization follows a specific sequence of steps
fixed socialization new hires are informed in advance when their probationary status will end
variable socialization employees do not know when to expect to pass to a different status level and the timeline may be different across employees
tournament socialization each stage of socialization is an elimination round and a new hire is out of the organization if he or she fails to pass
contest socialization each socialization stage is a contest in which one builds a performance record
serial socialization accessible and supportive organizational members serve as role models and mentors
disjunctive socialization newcomers are left alone to develop their own interpretations of the organization and situations they observe
investiture socialization builds newcomers’ self-confidence and reflects senior employees’ valuing of newcomers’ knowledge and personal characteristics
divestiture socialization tries to deny and strip away certain personal characteristics
learning agility the ability to learn from experiences and to apply that knowledge to new and different situations
motivation to transfer intention and willingness to transfer any knowledge acquired in a training or development activity back to the work context
Self Regulation processes enabling an individual to guide his/her goal-directed activities over time
performance management directs and motivates employees, work groups and business units to accomplish organizational goals by linking past performance with future needs, setting specific goals for future behavior and performance, providing feedback and identifying and removing performance obstacles - Organization as a whole- Organization subunits- Work teams or groups- Work Processes- Projects Performance managers focus on these five things:
- Aligns organizational goals with individual goals and organizational processes- Gives employees clear goals and feedback- Generates useful data Three Main Benefits of Performance Management
balanced scorecard a performance measurement system that translates the organization’s strategy into financial, business process, learning and growth and customer outcomes. sequential.
L-I-C-C-M-A-G-IO-R- Link goals to org mission & strategy- Identify subgoals for each unit/department/group/individual- Communication goals & expectations- Create work processes and assign resources- Measure progress- Assess individual, group, unit performance- Give feedback – Identify & Overcome obstacles- Reward Goal Achievement Nine steps of the performance management process
Specific, Measurable, Achievable, Relevant, Time-Bound SMART stands for:
Standards specifies the level of results considered acceptable
multi-source assessments performance feedback from the employee’s supervisor as well as other sources who are familiar with an employee’s job performance
task aquaintance the amount and type of work contact an evaluator has with the person being assessed
Upward reviews the target employee is reviewed by one or more subordinates
performance rating methods compares employee performance to a set of standards to identify a number or letter rating that represents the employee’s performance level.essay appr, critical incident, graphic, behavior anchored, behavior obs scale, forced choice, checklist, work standards, mgmt by obj
essay appraisal method the assessor writes a brief essay providing an assessment of the strengths, weaknesses and potential of the target employee
critical incident appraisal method an assessor discusses specific examples of the target employee’s positive and negative behaviors with the employee
graphic rating scale uses ratings of unsatisfactory, average, above average and outstanding to evaluation either work quality or personal traits
Behaviorally anchored rating scales use a set of behavioral statements relating to qualities important for performance
behavioral observation scales measure the frequency of desired behaviors
forced-choice rating method forces the assessor to choose the statement that best fits the target employee from a provided set of statements that are scored and weighted in advance
checklist method the assessor uses a checklist of pre-scaled descriptions of behavior to evaluate the employee
work standards comparing an employee’s performance to output targets that reflect different levels of performance
management by objectives the rater evaluates the target employee against mutually set goals
performance ranking methods compares employees to each other in some way. forced ranking, paired comparison, forced distribution.
forced ranking method employees are ranked in order of best to worst performance
paired comparison method every employee in a work group is compared to the other group members
forced distribution method the rater distributes performance ratings into a pre-specified performance distribution
continuous performance appraisal an ongoing performance appraisal process that involves the employee in evaluating his or her performance and setting performance goals and provides continuous coaching and feedback
performance improvement plan a tool to monitor and measure an employee’s deficient work products, processes and/or behaviors to improve performance or modify behavior. F acts to define probO bj to help emp resolveS olutions to help emp reach objA ctions to take if not corrected+ overall efforts to help emp succeed
progressive discipline using increasingly severe measures when an employee fails to correct a deficiency after being given a reasonable opportunity to do soverbal, written, suspension w/o pay, discharge
Not communicating a performance plan, a lack of accountability and human biases and errors Three most common obstacles to effective performance management
performance plan describes desired goals and results, how results will be measured and weighted and standards will be used to evaluate results
accountability an individual is expected to provide a regular accounting to a superior about the results of what she or he is doing and will be held responsible for the outcome
contrast effect over-or under-rating someone base on a comparison with someone else
first impression bias initial judgements influence later assessments
recency effect allowing recent events and performance to have a disproportionately large influence on the rating
high potential error confusing potential with performance
halo effect letting one positive factor influence assessments of other areas of behavior or performance
horns effect letting one negative factor influence assessments of other areas of behavior or performance
similar-to-me effect giving high ratings to someone because she or he is perceived as being similar to the rater
leniency error all employees are given high ratings regardless of performance
central tendency rating all employees in the middle of the scale regardless of performance
stereotype believeing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way
opportunity bias ignoring factors beyond the employee’s control that influence his/her performance
competitive advantage doing something differently from the competition that leads to outperformance and success
human resource management the organizational function responsible for attracting, hiring, developing, rewarding and retaining talent
staffing the process of planning, acquiring, deploying and retaining employees that enables an organization to meet its talent needs and to execute its business strategy
total rewards the sum of all of the rewards employees receive in exchange for their time, efforts and performance
direct financial compensation compensation received in the form of salary, wages, commissions, stock options or bonuses
indirect financial compensation all the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time and health insurance
nonfinancial compensation rewards and incentives given to employees that are not financial in nature including intrinsic rewards received from the job itself or from the work environment
Strategic risk, Operational risk, Financial risk and Compliance risk Managing human resources strategically helps organizations manage four types of risk:
business strategy defines how a firm will compete in its marketplace
talent philosophy a system of beliefs about how an organization’s employees should be treated
human resource strategy links the entire human resource function with the firm’s business strategy
global mindset a set of individual attributes that enable you to influence individuals, groups and organizations from diverse socio/cultural/institutional systems
superior value for their money To have a competitive advantage, a company must ultimately be able to give customers _.
Employee Handbooks print of online materials that document the organization’s HRM policies and procedures
shared service center centralizes routine, transaction-based HRM activities
outsourcing hiring an external vendor to do work rathe than doing it internally
professional employer organization a company that leases employees to companies that need them
organizational culture the norms, values, and assumptions of organizational members that guide members’ attitudes and behaviors
entrepreneurial (creative), bureaucratic (formal), consensual (loyalty), competitive (advantage) four types of organizational culture
performance culture focuses on hiring, retaining, developing, motivating and making work assignments based on performance data and results
high performance work systems (HPWS) high involvement or high commitment organizations
ethics the standards of moral behavior that define socially accepted behaviors that right as opposed to wrong
utilitarian, rights, fairness, common good, virtue five types of ethical standards
utilitarian standard the ethical action best balances good over harm
rights standard this ethical action is the one that best respects and protects the moral rights of everyone affected by the action
fairness standard the ethical action treats all people equally, or at least fairly, based on some defensible standard
common good standard the ethical action shows respect and compassion for all others, especially the most vulnerable
virtue standard the ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc.
omission, remission, commission three types of systematic errors that orgs make that undermine ethics efforts
omission errors a lack of written rules
remission errors pressure to make unethical choices
commission errors a failure to follow sound, established operational and ethical practices
codes of conduct specifies expected and prohibited actions in the workplace and gives examples of appropriate behavior
code of ethics a decision making guide that describes the highest values to which an organization aspires
written standards of ethical conduct, ethics training, providing a way for seeking ethics related advice or info, providing a way to report misconduct anonymously, disciplining employees, evaluating ethical behavior six elements of a complete ethics program
corporate social responsibility businesses showing concern for common good and valuing human dignity
stakeholder perspective considering the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organizations actions
unfair discrimination when employment decisions and actions are not job related, objective or merit-based
fair discrimination when only objective, merit based and job related characteristics are used to determine employment related decisions
unlawful employment practices violations of federal, state or local employment laws
equal employment opportunity a firm’s employment practices,must be designed and used in a manner that treats employees and applicants consistently regardless of their protected characteristics such as sex and race
inclusion everyone feels respected and listened to, and everyone contributes to his or her fullest potential
common law the body of case by case court decisions that determine what is legal and what remedies are appropriate
workplace tort a civil wrong in which an employer violates a duty owed to its customers or employees
national labor relations act of 1935 prohibits retaliation against employees seeking to unionize
fair labor standards act of 1938 establishes both a national minimum wage and overtime rules
equal pay act of 1963 prohibits wage discrimination on the basis of sex. EEOC
title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin. EEOC
age discrimination in employment act of 1967 protects people age 40 and older. EEOC
rehabilitation act of 1973 prohibits discrimination against qualified individuals with a disability. EEOC
vietnam era veterans readjustment assistance act of 1974 prohibits discrimination against and requires affirmative action for disabled veterans
pregnancy discrimination act of 1978 prohibits discrimination for all employment related purposes on the basis of pregnancy, childbirth, or related medical conditions
COBRA of 1986 employers with group health plans and 20 or more employees in the prior year must offer continued health and dental coverage to terminated employees for a period of time
immigration reform and control act of 1986 employers with at least 4 employees must verify the employment eligibility of everyone hired
worker adjustment and retraining notification act of 1988 employers with at least 100 employees must give at least 60 days notice of closings or mass layoffs of 50 or more preople
americans with disabilities act of 1990 prohibits discrimination of a qualified individual with or perceieved as having a disability. EEOC
family and medical leave act of 1993 requires leave and job return for personal or family medical reasons and for the care of newborn or newly adopted children
uniformed services employment and reemployment rights act of 1994 ensures that members of the uniformed services are entitled to return to their civilian employment after their service. to protect the civilian employment of non-full-time military personnel in the United States called to active duty.
genetic information nondiscrimination act of 2008 prohibits employers from discriminating against individuals based on the results of genetic testing when hiring, firing, job placement or promotion decisions
bona fide occupational qualification characteristic that is essential to the successful performance of a relevant job function
reasonable accommodation an employer is required to take reasonable steps to accomodate a disability unless it would cause the employer undue hardship
affirmative action proactive efforts to eliminate discrimination and its past effects
protected classes groups underrepresented in employment
affirmative action plan describes in detail the actions to be taken, procedures to be followed and standards to be met when establishing an affirmative action program
preferential treatment employment preference given to a member of a protected group
independent contractor an individual or business that provides services to another individual or business that controls or directs only the result of the work
sexual harassment unwelcome sexual advances, requests for favors and other verbal or physical conduct of a sexual nature
quid pro quo harassment unwanted verbal or physical conduct of a sexual nature mad as a term or condition of employment or as a basis for employment and/or advancement decisions
hostile environment harassment unwanted verbal or physical conduct of a sexual nature creates a hostile, intimidating or otherwise offensive working environment
disparate treatment intentional discrimination based on a person’s protected characteristic
adverse impact an employment practice has a disproportionate effect on a protected group regardless of its intent
race norming comparing an applicant’s scores only to members of his or her own racial subgroup and setting separate passing or cutoff scores for each subgroup
fraudulent recruitment misrepresenting the job or organization to a recruit
negligent hiring a company is considered responsible for the damaging actions of its employees if it failed to exercise reasonable care in hiring the employee who caused the harm
stereotype believing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way
gap analysis comparing labor supply and demand forecasts to identify future talent needs
action plans a strategy for proactively addressing an expected talent shortage or surplus
scientific management breaks work down into its simplest elements and then systematically improves the worker’s performance of each element
Four principles of Scientific Management – Taylor – Use methods based on scientifcally studying the tasks using time an motion studies.- Select, train and develop each worker rather than leaving them to passively train themselves- Provide detailed instructions and supervision to workers to ensure that they are following the developed methods.- Divide work equally between workers and managers.
Job characteristics model objective job characteristics including skill variety, task identity, task significance, autonomy and task feedback, lead to job satisfaction from people with a high growth need strength.
Skill variety the degree to which the job requires a variety of activities enabling the worker to use different skills and talents
task identity the degree to which the job requires the worker to complete a whole and identifiable piece of work
task significance the degree to which job performance is important and affect the lives and work of others
autonomy the degree to which the job gives the worker freedom, discretion and independence is scheduling the work and determining how to do the work
task feedback the degree to which carrying out the job’s required activities results in the individual’s obtaining direct and clear information about the effectiveness for his or her performance
job enrichment a job design approach that increases a job’s complexity to give workers greater responsibility and opportunities to feel a sense of achievement
job enlargement adding more tasks at the same level of responsibility and skill related to an employee’s current position
job rotation workers are moved through a variety of jobs to increase their interest and motivation
cross-training training employees in more than one job or in multiple skills to enable them to do different jobs
horizontal Job enlargement is job expansion.
vertical Job enrichment is _ job expansion.
job analysis a systematic process used to identify and describe the important aspects of a job and the characteristics a worker needs to perform the job well. need to be reliable and valid.
job description written descriptions of the duties and responsibilities of the job itself
job task an observable unit of work with a beginning and an end
task statements identify in specific behavioral terms the regular duties and responsibilities of a position
person specification summarizes the characteristics of someone able to perform the job
essential criteria job holder characteristics that are vital to job performance
desirable criteria job holder characteristics that may enhance job success but are not essential to adequate job performance
Knowledge, Skills, Abilities, Other Characterstics KSAO. job related worker characteristics
Knowledge organized factual or procedural information that can be applied to perform a task
Skill the ability to use some sort of knowledge in performing a physical task; often refers to psychomotor activities
ability a stable and enduring capability to perform a variety of tasks (verbal or mechanical ability)
Other characteristics a miscellaneous category for worker characteristics that are not knowledge, skills or abilities including personality traits, values and work styles
Critical Incidents Technique Job Analysis Method: Job experts describe episodes of good, average and poor performance. circumstances, action, consequences
Job Elements Analysis Method Job Analysis Method: a group of job experts list and rate the important worker characteristics that influence success in the job, including knowledge, skills, abilities and personal characterstics
Structured Interview Technique Job Analysis Method: Job experts supply information about the job and workers that distinguishes superior performance.
Task Inventory Approach Job Analysis Method: Job experts generate a list of 50-200 tasks that are then grouped in categories reflecting major work functions.
Structured Questionnaires Job Analysis Method: Written questionnaires that assess information about worker inputs, work output, job context and job characteristics.
Competency Modeling identifies the worker competencies characteristic to high performance
Competencies broad worker characteristics that underlie successful job performance
job rewards analysis job analysis technique that identifies the intrinsic and extrinsic rewards of a job
intrinsic reward non-monetary reward derived from the work itself
extrinsic reward reward with monetary value
total rewards the combined intrinsic and extrinsic rewards of a job
organizational design selecting and managing aspects of organizational structure to facilitate organizational goal accomplishment
organizational structure the organization’s formal system of task, power and reporting relationships. chars of: formalization, centralization, division of labor, span of control, hierarchy
organizational chart diagram illustrating the chain of command and reporting relationships in a company
formalization the degree to which organizational rules, procedures and communications are documented
centralized concentrate power and decision making authority at higher levels of the organization
division of labor the degree to which employees specialize
span of control number of people who report directly to him or her.
hierarchy the degree to which some employees have formal authority over others
strategic planning process for making decisions about an organization’s long-term goals and how they are to be achieved
mission the organization’s basic purpose and the scope of its operations
vision long-term goals regarding what the organization wants to become and accomplish, describing its image of an ideal future
core values the enduring beliefs and principles that guide an organization’s decisions and goals
business strategy how an organization will compete in a particular market
human resource planning aligning the organization’s human resources to effectively and efficiently accomplish the organization’s strategic goals
Leading Economic Index, Consumer Confidence Index, Exchange Rate Trends, Interest Rate Forecasts, Additional sources such as GPD and business inventories 5 sources for evaluating general economic trends to forecast labor demand:
Trend analysis, ratio analysis, judgmental forecasting 3 Techniques used to forecast labor demand
trend analysis using past employment patterns to predict a firm’s future labor needs
staffing ratios indexing headcount with a business metric.ie manager to emp, rev to emp, cust to emp, store size to emp
judgmental forecasting relies on managers’ expertise to predict a firm’s future employment needs
top-down judgmental forecasting relies on the organization’s leaders and experience and knowledge of their industry and company to make predictions about the firm’s future talent needs.
bottom-up judgmental forecasting starts with lower-level managers’ estimates of the firm’s future talent needs.
talent inventories databases summarizing each employee’s competencies, qualifications, languages spoken, and anything else that can help the company understand how the employee can contribute
replacement charts graphically shows current jobholders, possible successors and each successor’s readiness to assume the job
succession planning identifying, developing and tracking employees to enable them to eventually assume higher level positions
workflow how work is organized to meet the organization’s goals
business process reengineering a more radical rethinking and redesign of business processes to achieve large improvements in speed, service, cost or quality
workflow analysis investigates how work moves through an organization to identify changes to increase efficiency and better meet customers’ needs
utilitarian Which ethical standard: Southwest Airlines cuts all employees’ pay rather than laying anyone off
rights Which ethical standard: If a supervisor tells an employee to handle a toxic substance without appropriate protective gear
fairness Which ethical standard: debate over the appropriateness of CEO salaries and bonuses that are hundreds of times larger than the pay of the average employee.
Common Good Which ethical standard: Ensuring that suppliers do not employ child labor or provide unsafe working conditions
virtue Which ethical standard: A company valuing honesty that quickly recalls products that might be defective or dangerous
union models closed shopagency shopopen shop
3 types of unions industrial, trade, and employee associations
types of strikes unfair labor practiceseconomicrecognitionjurisdictional
5 components to drug free workplace 1. written policy2. supervisor training3. employee education4. EAP5. drug testing
influence tactics 1. legitmating2. personal appeals3. assertiveness4. ingratiation5. inspirational appeals6. rational persuasion7. upward appeals8. coalition9. exchange
labor relations strategies compliancecollaborationavoidance
defined contribution retirement plans ie 401(k), 403(b)profit sharing, emp stock ownership
5 of 7 reasons emp leave org lack of career devpoor work climatelack of challenging workdirection of orglack of recognition
sourcing ID qual indv & labor markets to recruit from
UGESP uniform guidelines on emp selection. selecting procs advises employee in legal compliance
Kaplan & Norton balanced scorecard objectivesmeasurestargetsinitiatives
job offer elements salary, sign-on bonus, relocation exp, benefits, job specific elements
assessment goals accuracy, fit, ethics, legal compliance
ratio analysis use past relationships to forecast how many emp needed for diff levels of bus activity
forecast external job market monitor own experiencebureau of labor stats
hackman & oldman 5 chars on which jobs differ skill varietytask identitytask significanceautonomytask feedback
4 common biases prejudice, stereotyping, perception of possibilities, ignorance
HRM influences performance thru what emp should dowhat emp can dowhat emp will do
What emp should do planninglaws & regulations
what emp can do staffing training
what emp will do compensationperf mgmt
HRM areas perf mgmtstaffinghealth & safetytraining & developmentreward & benefitsemp mgmt relations
Executive Order 11246 “established requirements for non-discriminatory practices in hiring and employment on the part of U.S. government contractors. It “”prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin.”””
optional benefits work life balance, domestic partner benefits
policy guide decision making
procedure drive actions