comm 211 section 3 Flashcards

Question

Collective Bargaining Process

Answer 1

Steps in collective bargaining: 1. Preparation: Both sides gather data and set priorities. 2. Negotiation: Discussions between union and employer on terms. 3. Tentative Agreement: Both sides agree on key terms. 4. Ratification: Union members vote to approve the agreement. 5. Implementation: The contract is put into effect and monitored.

Answer 2

Key standards include: * Just Cause: Employers must have a valid reason for termination. * Progressive Discipline: Employees may be given warnings before dismissal. * Fair Process: Employees must have an opportunity to respond. * Unions' Role: Unions can challenge dismissals and negotiate procedures. * Economic Termination: Layoffs due to economic reasons may be negotiated with unions.

Answer 3

Employees may be let go with fewer protections during probation.

Answer 4

* Linked to the strategic needs of an organization - corporate, business, & functional levels * HR strategies and tactics must be mutually consistent * HR strategies need to be consistent with organizational priorities

Answer 5

1. Organizational Mission, Goals, and Strategy Analysis 2. Environmental Scan 3. Analysis of Organizational Character and Culture 4. Choice and Implementation of Human Resource Strategies 5. Review, Education and Audit of Human Resource Strategies

Answer 6

* Statement outlining the purpose, long-term objectives, and activities the organization will pursue and the course for the future * The organization’s goals outline what specifically the organization seeks to achieve in a given time period, which impacts its HR practices * The organization’s strategies determine the appropriate array of HR practices * HR strategies enable the successful completion of the organization’s strategies

Answer 7

Continuous monitoring of economic, technological, demographic, and cultural forces The major forces: 1. Economic 2. Technological 3. Demographic 4. Cultural 5. Legal

Answer 8

Human resource strategies should be formulated only after a careful look at the organization’s structure * Employees, objectives, technology, size, age, unions, policies, successes, failures Structure reflects the past and shapes the future Each organization has a unique culture * Core beliefs and assumptions that are widely shared by all organizational members

Answer 9

HR must continuously focus on the following activities: 1. Identifying opportunities, risks, and challenges 2. Making data-informed decisions aligned to strategy 3. Optimizing for high performance

Answer 10

* HR Strategies should be examined periodically in consideration of changing factors (e.g., technology, environment) * A holistic review of HR strategies with the intention of identifying and correcting deficiencies is called a human resource audit * Human resource activities aimed at productivity improvement, succession planning, and cultural change are critical to competitive survival Assessing the HR Function q Compliance q Client satisfaction q Culture management q Cost control q Contribution

Answer 11

* Deciding whom to target – Geography – Applicant type * Choice of Recruitment Source

Answer 12

Advantages: * Employee is familiar with the organization * Employee is “known”, thereby increasing ability to predict success * Improves employee morale & motivation Weaknesses: * Internal competition can reduce cooperation * No “new blood” so can prevent creative solutions * Poor morale (possible turnover) of employees not promoted

Answer 13

Advantages: * Able to acquire skills and knowledge that may not be available within * Newer ideas and novel ways of solving problems may emerge Weaknesses: * Newcomers may not fit in * Newcomers take longer to learn about the organization * Usually more expensive * Lowered morale and motivation of current employees

Answer 14

* Organization’s reputation is an important concern to job applicants * Corporate image predicts the likelihood of interest on the part of a job seeker * Familiarity with the company * Competitive compensation package

Answer 15

¬ Face-to-face Contact ¬ Signaling theory ¬ Ideal recruiter characteristics ¬ Knowledge about the job and firm ¬ Doesn’t oversell the employer ¬ Knows the candidate’s background ¬ Expresses interest in the candidate and builds rapport ¬ Positive attitude about company and role ¬ Good interpersonal skills, professional, and ethical ¬ Follows-up promptly ¬ Applicant Reactions to selection procedures ¬ Discrete ¬ Fair / just ¬ Job relevant ¬ Timely ¬ Need to balance rigour / difficulty with applicant reactions ¬ Realistic Job Previews ¬ Reduce voluntary turnover: ¬ Met expectations ¬ Ability to cope ¬ Air of honesty / commitment ¬ Self-selection

Answer 16

¬ Objective Factors (Job Attributes) ¬ Type of work, Pay, Benefits, Hours, Job Security, etc. ¬ Subjective Factors (Perceived Fit) ¬ Demands-Abilities vs. Needs-Supplies ¬ Supplementary vs. Complementary ¬ Critical Contact ¬ Consistent with Signaling Theory ¬ Recruiter characteristics, perceptions of selection process, etc. influence job choice

Answer 17

* Increase the probability of hiring a high performer—in terms of both task and contextual performance * Selection systems are legally defensible * Ethical reasons—selection decisions are high stakes; they have a profound impact on the lives of applicants and others who work with them (for them)

Answer 18

* The degree to which interviews, tests, and other selection procedures yield comparable data over time and alternative measures. * The proportion of true score variance to error variance in the obtained score

Answer 19

* Test – retest * Internal Consistency * Inter-rater Reliability

Answer 20

* “the degree to which available evidence supports inferences made from scores on selection measures.”* * Evidence that the test is measuring OR predicting what it’s supposed to be measuring or predicting

Answer 21

* Criterion-related validity * Concurrent validation studies * Predictive validation studies * Content validity * Does assessment contain a representative sampling of the content domain of the job? * Experts’ systematic judgment * No statistical measure of content validity * Differential Validity * Test validation aimed at discovering the validity of a test for various subgroups * Validity generalization * The extent to which validity coefficients can be generalized across situations.

Answer 22

Step 1: Preliminary Reception of Applicants STEP 2 Applicant Screening STEP 3 Administration of Employment Tests STEP 4 Employment Interviews STEP 5 Realistic Job Previews STEP 6 Verification of References Employment references STEP 7 Contingent Assessments STEP 8 Hiring Decision

Answer 23

* Initial contact with applicants * Walk-ins may receive preliminary interview * Write-ins often receive letter or email of acknowledgment * This step has disappeared in many organizations with the increasing use of Internet recruitment

Answer 24

* Goal: Remove from consideration applicants who do not meet qualifications * Weighted application blanks (WAB) * Ensure application is useful and meets legal requirements * Biographical information blanks (BIB)

Answer 25

Types of Tests Ø Personality Tests Ø Ability Tests; Knowledge Tests Ø Performance Tests Ø Situational Judgment Tests Ø Assessment Centres Ø Integrity Tests

Answer 26

Ø Predictive validity Ø Concurrent validity

Answer 27

Ø Content validity Ø Construct validity Ø Differential validity

Answer 28

Can: Knowledge skills abilities Will: personality values motivation

Answer 29

* Extraversion (sometimes called Surgency): The broad dimension of Extraversion encompasses such more specific traits as talkative, energetic, and assertive. * Agreeableness: Includes traits like sympathetic, kind, and affectionate. * Conscientiousness: Includes traits like organized, thorough, and planful. * Neuroticism (sometimes reversed and called Emotional Stability): Includes traits like tense, moody, and anxious. * Openness to Experience (sometimes called Intellect or Intellect/Imagination): Includes traits like having wide interests, and being imaginative and insightful.

Answer 30

(Faking) * Reducing Socially Desirable Responding: * Bogus pipeline * Social Desirability Scales: Example: I never swear * Forced Choice Response Scales Ways to Address Concerns * Forced Choice or Ipsative Scales

Answer 31

* Cognitive ability tests Cognitive abilities * intelligence, general mental ability, or intellectual ability * verbal, numerical, reasoning, memory, problem-solving, and information-processing abilities or skills * also include general mental ability (GMA, or g), which is predictive of performance across a wide variety of jobs

Answer 32

* Work Sample Tests and Simulations: In-basket exercise Leaderless group discussion Role playing exercise Presentations and business cases

Answer 33

* Interviews & Psychometric assessments

Answer 34

* Polygraph Testing * Paper & Pencil / online assessments

Answer 35

* Employment Interviews Ø Supervisors should have input into the final hiring decision Ø Common (and expected) as part of the selection process; covered in more detail * Formal, in-depth conversation conducted to evaluate the applicant’s acceptability * Most widely used selection technique * Allows a personal impression * Opportunity to sell a job to a candidate * Opportunity to answer candidate’s questions * Effective public relations tool * Popular due to flexibility and creates two-way exchange * Flaw relates to varying reliability and validity * Time consuming and expensive

Answer 36

* Interviews may be conducted on-to-one, panel, or group interview * Unstructured interviews Few if any planned questions Lacks the reliability of a structured interview * Structured interviews Pre-determined set of questions May improve reliability and validity over traditional unstructured interviews if designed well

Answer 37

* Behavioural Description Interviews Based on principle that the best predictor of future behaviour is past behaviour(tell me..., describe a time...) * Situational Interviews Focus on situations likely to arise on the job Applicants asked what they would do (what would you do in this situation...)

Answer 38

1: Interviewer preparation 2: Creation of rapport 3: Information exchange 4: termination of interview 5: evaluation of candidate

Answer 39

* Halo effect * Leading questions - often have yes/no answers * Stereotypes * Interviewer domination * Contrast errors

Answer 40

* Don’t ask questions that can be answered yes or no. * Don’t put words in the applicant’s mouth or telegraph a desired answer. * Don’t interrogate the applicant as if the person is a criminal. * Don’t over-interpret nonverbal cues. * Don’t monopolize the interview, nor let the applicant dominate the interview so you can’t ask all the questions. (80/20 rule) * Don’t try to assess too many KSAs in the interview (use other selection methods if necessary).

Answer 41

* Do have a standardized, structured interview plan. * Do base interview questions on job analysis. * Do focus on assessing personal relations, good citizenship, and job knowledge in interviews. * Do ask open-ended questions. * Do listen to the candidate and asking probing questions to encourage him or her to express thoughts fully. * Do draw out the applicant’s opinions, feelings, and thought patterns by repeating the last statement as a question or paraphrasing. * Do ask for examples. * Do take brief notes or record the interview (with candidates permission).

Answer 42

Realistic Job Previews Ø Shows the candidate the type of work, equipment & working conditions Ø Highlights positive & negative Ø Tends to reduce employee turnover Ø Don’t do this so late in the process

Answer 43

Employment references Ø Discuss applicant’s work history Ø Former supervisors may not be candid, especially with negative information Ø Reference letters Ø Background checks

Answer 44

Assessment of health, medical, and driving information May be scheduled after the hiring decision Drug tests are increasingly used but may be found to violate employee rights

Answer 45

Marks the end of the selection process Ø Update HRIS Ø Retain applications for future Tradeoffs among predictors Ø Subjective Approach Ø Multiple Cutoff Approach Ø Compensatory Approach

Answer 46

* Quality and productivity of the workforce Are supervisors/peers satisfied with hires? Are training costs increasing? Are managers spending too much time managing new hires? Are grievances, absences, and turnover too high? * Costs incurred are at a level appropriate to the organization

Answer 47

Strategic Importance of Onboarding, Training, and Development The onboarding, training, and development functions seek to socialize the new hire to the organization, match what the employee can do with job demands, and tap employee potential for future job roles, all while meeting the employee’s career objectives. * Time-consuming and expensive efforts, but they: * reduce turnover * help employees become productive sooner * and contribute to overall employee satisfaction

Answer 48

* The process of helping new hires adjust quickly and smoothly to the performance aspects of their new jobs and the social aspects of the organization * Includes orientation, socialization, training and development activities * Outcomes include: Greater retention, faster time to productivity, reduced anxiety, increased motivation, and engagement

Answer 49

a course introducing a new situation or environment Includes: Organizational issues HR related topics Role expectations

Answer 50

* The continuing process by which an employee begins to understand and accept the values, norms, and beliefs held by others in the organization * Involves turning outsiders into insiders * May have taken place even before employees join organization

Answer 51

Employee benefits * Skill improvement, self-development, self-confidence, sense of growth * Organizational benefits * Improved profitability, improved morale, lower costs, better corporate image

Answer 52

1. Conducting the Needs Assessment * Organization Analysis * An examination of the environment, strategies, and resources of the organization to determine where training emphasis should be placed. * Task Analysis * The process of determining what the content of a training program should be on the basis of a study of the tasks and duties involved in the job. * Person Analysis * A determination of the specific individuals who need training. 2. Training objectives: Performance criteria desired behavior conditions 3. Learning objectives = Learning principles: Participation, repitition, relevance, transference, feedback = effective learning 4. program delivery 5. evaluation

Answer 53

Criterion 1: Reaction * Participant Reactions * The simplest and most common approach to training evaluation is assessing trainees. * Potential questions might include the following: * What were your learning goals for this program? * Did you achieve them? * Did you like this program? * Would you recommend it to others who have similar learning goals? * What suggestions do you have for improving the program? * Should the organization continue to offer it? Criterion 2: Knowledge * Checking to see whether they actually learned anything * Testing knowledge and skills before beginning a training program gives a baseline standard on trainees that can be measured again after training to determine improvement. Criterion 3: Behaviour * Transfer of Training * Effective application of principles learned to what is required on the job. * Maximizing the Transfer of Training * Feature identical elements * Focus on general principles * Establish a climate for transfer * Give employees transfer strategies Criterion 4: Results or Return on Investment (ROI) * Utility of Training Programs * Calculating the benefits derived from training: * How much did quality improve because of the training program? * How much has it contributed to profits? * What reduction in turnover and wasted materials did the company get after training? * How much has productivity increased and by how much have costs been reduced?

Answer 54

* Preparing the employee to assume greater responsibilities and authority, often in formal leadership positions * Talent Management is the practice of preparing a pool of developed employees to meet future organizational challenges and opportunities

Answer 55

Cognitive * Altering thoughts and ideas – increase knowledge and expertise * Includes lectures, seminars, academic education Behavioural * Change behaviour (e.g., management style) * Includes role-playing, behaviour modelling, team building, mentoring Environmental * Provide the setting for employees to develop * Includes job rotation, temporary assignments, employee exchange programs, internal consulting, diversity & inclusion training

Answer 56

+ Performance Appraisal A process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success. + Performance Management The process of creating a work environment in which people can perform to the best of their abilities.

Answer 57

-Job redesign -Administrative decisions(pay raises, promotions) -Feedback and performance improvement -Employee development and career planning -Criteria for test validation -Training program objectives

Answer 58

+ Performance ratings must be job-related. + Employees must be given a written copy of their job standards in advance of appraisals. + Managers who conduct the appraisal must be able to observe the behaviour they are rating. + Supervisors must be trained to use the appraisal form correctly. + Appraisals should be discussed openly with employees and counseling or corrective guidance offered. + An appeals procedure should be established to enable employees to express disagreement with the appraisal.

Answer 59

+ Balanced Scorecard Very popular approach Combines the performance measures of the total organization—integrates financial goals with customer satisfaction, internal processes, organizational growth, learning, and innovation

Answer 60

+ Comparative Evaluation Methods compare one employee’s performance with that of coworkers. + Ranking method: Employees ranked from best to worst + Forced distributions: + Employees sorted into categories + Usually a certain proportion must be put into each category

Answer 61

Rating scale: * Oldest and most widely used method * Subjective (i.e. based on the rater’s opinion) * Responses may be given numerical values BARS & BOS: * Descriptions of effective/ineffective performance—examples placed along a scale * Job-related, practical, and standardized Tests and observations: * May include paper-and-pencil tests or an actual demonstration of skills Management by objectives: * Employee and supervisor jointly establish future performance goals

Answer 62

+ Raters are trained on the purpose of the performance appraisal process, its alignment with the organization’s strategy, and the forms themselves (e.g., rater handbook) + Rater error training was commonly included: Halo effect Error of central tendency Leniency and strictness biases Personal prejudice Recency effect Contrast errors

Answer 63

+ The performance management process also provides insight into effectiveness of HRM + If poor performance is widespread, many employees are excluded from promotions and transfers + Unacceptably high numbers of poor performance may indicate errors in the HRM function e.g., selection process may be screening candidates poorly; job analysis information may be inaccurate

Answer 64

+ A performance appraisal form is a legal document + Raters must use only performance criteria that are relevant to the job + Avoid non-relevant criteria + A reasonable time must be set for performance improvement + Well-documented performance shortcomings and use of feedback interviews have been viewed favourably in court and with arbitrators

Answer 65

* Cash and non-cash rewards employee receive in exchange for their work * Effective compensation management * Employees more likely to be satisfied, motivated, and contribute to objectives * Compensation perceived inappropriate * Performance, motivation, and satisfaction may decline dramatically * Turnover may occur * Dissatisfaction with absolute or relative pay

Answer 66

* Total compensation includes base wages, variable pay, perks and on-site amenities, status/recognition, and benefits * Not all have monetary value * Total reward approaches lead to: * Easier recruitment of high-quality staff * Lower turnover * Higher employee performance * Enhanced employer reputation

Answer 67

* Internal equity – pay related to relative worth of jobs * External equity – paying workers relative to market

Answer 68

* An employee’s perception that compensation received is equal to the value of the work performed. * A motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve. * Weaknesses: Who is the referent other? How do referent others change over time?

Answer 69

* Distributive Justice * “what people [are] concerned about [is] not the absolute level of outcomes per se but whether those outcomes [are] fair” (Colquitt et al., 2001, p. 426) * Procedural Justice * Procedures used to allocate rewards should be (a) applied consistently, (b) free from bias, (c) use accurate information, (d) have mechanism to correct flawed decisions, (e) ensure that opinions of all stakeholders taken into account (Colquitt et al., 2001)

Answer 70

Expectancy Theory A theory of motivation that holds that employees should exert greater work effort if they have reason to expect that it will result in a reward that they value. Employees also must believe that good performance is valued by their employer and will result in their receiving the expected reward Motivating Potential =Expectancy x Instrumentality x Valence Expectancy= If I increase my effort, I will improve my performance Instrumentally= If I improve my performance, it will be recognized and valued Valence= If my performance is recognized, I will receive a valuable reward

Answer 71

Motivating Potential =E x I x V/Impulsiveness x Delay Impulsiveness= Will I work to attain something I value, even though it might take a long time to receive the reward? Can I delay gratification? Delay= How long do I have to wait to get the reward?

Answer 72

Phase 1: Establishing the Compensation Philosophy * Job Size * Performance * Market * Lead * Match * Lag Phase 2 Job Analysis * Understand the job and skills needed * Job analysis information o Job descriptions o Job specifications o Performance standards Phase 3: Pricing Jobs * Determine relative worth or value of jobs * Three approaches: o Job evaluation o Market-pricing o Skill-based Pricing Jobs: Job Evaluation Methods * Systematic procedures to determine the relative worth or value of jobs (internal equity) * Job ranking * Job grading * Point System * Phase 4: Matching Employees to Pay * Establishing the pay level for each job o Combines job evaluation rankings, survey wage rates, and other considerations (e.g. organization’s pay policy) o Wage-trend line developed * Creating compensation structure o Job classes and rate ranges

Answer 73

* Job ranking is the simplest job evaluation method * Jobs are subjectively ranked by importance in comparison to other jobs with higher ranked jobs paid more * E.g., In retail sales, the regional manager job may be ranked 1, store manager job as 2, and sales assistant job as 3 * Rankings do not differentiate the relative importance of jobs

Answer 74

* Job Classification or Grading System * A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades. * Successive grades require increasing amounts of job responsibility, skill, knowledge, ability, or other factors selected to compare jobs.

Answer 75

* Point System * A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it. * Permits jobs to be evaluated quantitatively on the basis of factors or elements—compensable factors—that constitute the job. * The Point Manual * A handbook that contains a description of the compensable factors and the degrees to which these factors may exist within the jobs.

Answer 76

* Market-pricing focuses on external competitiveness * How much should organizations pay for jobs based on what their competitors are paying * Wage and salary surveys * Same labour market comparable jobs * Matching the market, market leader, market lag

Answer 77

* Pay is based on depth (gaining greater expertise in existing skills), breadth (increases in the employee’s range of skills), and self-management (gaining higher level management-type skills, such as budgeting, training, planning, and so forth)

Answer 78

* Wage Curve A curve in a scattergram representing the relationship between relative worth of jobs and wage rates. * Pay Grades Groups of jobs within a particular class that are paid the same rate. * Rate Ranges A range of rates for each pay grade that may be the same for each grade or proportionately greater for each successive grade. * Red & Green Circle Rates Payment rates above the maximum (red circle) or below the minimum (green circle) of the pay range

Answer 79

* Equal pay for equal work (Equal Pay) * Part of Canada Labour Code since 1971 * Employers must pay men and women the same wage or salary when they do the same work * Equal pay for work of equal value (Pay Equity) * Jobs of comparable worth to the organization should be paid equally * Part of Canadian Human Rights Act since 1978 Pay Equity * Most legislation has dictated the use of an evaluation system that evaluates: 1. Skill (Complexity, Knowledge, Education, Experience) 2. Effort (Physical and Mental Demands) 3. Responsibility (Accountability, Supervision, Budget) 4. Working Conditions (Physical Environment, Concentrationx, Stress)

Answer 80

Daniel Pink argues that extrinsic rewards (like money or prizes) can hinder creativity because they narrow focus, shift motivation toward external incentives, and reduce intrinsic drive. This is especially problematic for tasks requiring creative thinking, where intrinsic motivation (doing something for the enjoyment or satisfaction of it) is key. Instead of relying on extrinsic rewards, Pink suggests fostering intrinsic motivation by providing three key elements: 1. Autonomy: Giving people control over their work. 2. Mastery: Encouraging progress and skill development. 3. Purpose: Connecting the work to something meaningful. These factors, according to Pink, lead to more creative, innovative, and sustainable motivation.

Answer 81

Piecework works well for Lincoln Electric because it directly ties workers' pay to their output, motivating them to be more productive. The company’s skilled workforce benefits from this system, as higher productivity leads to higher pay. Additionally, the company’s strong culture of trust, job security, and autonomy helps workers thrive in a performance-driven environment. Key Practices that Make It Work: 1. Incentive Programs: Profit-sharing and stock ownership align workers’ interests with the company’s success. 2. High Standards: The system rewards both quantity and quality, ensuring product excellence. 3. Training: Continuous skill development enhances worker productivity. 4. Job Security: Long-term employment fosters loyalty and motivation. 5. Collaborative Culture: Employee involvement in decision-making boosts engagement. Together, these practices make the piecework system effective, ensuring both worker motivation and company success.

Answer 82

- Piecework: is an incentive system that compensates the worker for each unit of output. Daily or weekly pay is determined by multiplying the output in units times the piece rate per unit. For example, in agricultural labour, workers are often paid a specific amount per bushel of produce picked. Piecework does not always mean higher productivity, however. Group norms may have a more significant impact if peer pressure works against higher productivity. And in many jobs, it may be difficult to measure the person’s productive contribution (e.g., receptionist), or the employee may not be able to control the rate of output (e.g., an assembly-line worker). - Commissions: Commission is commonly paid in sales jobs. The salesperson may be paid a percentage of the selling price or a flat amount for each unit sold. Organizations often tie commission rates to sales quotas. Salespeople meeting the highest quotas will be paid the highest commission rates, with those meeting lower targets paid lesser commission rates. - Production Bonuses: are incentives paid to workers for exceeding a specified level of output. They are used in conjunction with a base wage rate or salary. Under one approach, the employee receives a predetermined salary or wage. Through extra effort that results in output above the standard, the base compensation is supplemented by a bonus, usually figured at a given rate for each unit of production over the standard - Discretionary bonus plans: employees are paid base wages and then are paid a bonus at the discretion of management. When these bonuses are paid on the basis of performance, management will typically determine the size of the total bonus pool and then allocate amounts to individuals after a performance period. The top employees may receive bonus amounts commonly around 10 percent of their base salary. Employees who did not meet performance expectations will get no bonus. A related form of discretionary bonus is pay-at-risk. Employees can earn the additional amount or percentage of their wages that is pay-at-risk provided they meet specific targets. - Spot awards: recognize special contributions as they occur. Employees may receive spot awards for a project or task, generally accomplished in a short period. These types of recognition awards can range from gift certificates and thank-you notes to paid time off to cash awards or salary increments unrelated to annual merit increases.

Answer 83

- Team Results: o Team Results Under team-based pay plans, employee bonuses and salary increases are based on a team’s overall results and typically shared equally. There can be a number of advantages in a team-based pay system. For example, in project teams, many jobs are interrelated; that is, they depend on each other for making progress. A team approach tends to foster group cohesion and organizational commitment. Communication in cohesive teams tends to be more open, and decision making can be more effective if a consensus approach is in the team’s interest. Team-based pay often includes rewards for developing better interpersonal skills to improve cooperation and incentives for crosstraining. o There can also be disadvantages to team-based pay systems. If team cohesiveness is not strong, a “freeloader effect” may take place. As in any group, individual contributions to team goals vary. Some put in more effort; others, less. If these differences are significant and the high performers do not receive satisfaction for their input, they may cut back their contributions. - Production Incentive Plans: Production incentive plans allow groups of workers to receive bonuses for exceeding predetermined levels of output. They tend to be short-range and related to very specific production goals. A work team may be offered a bonus for exceeding predetermined production levels, or it may receive a per-unit incentive that results in a group piece rate

Answer 84

- Profit-Sharing Plans: A profit-sharing plan shares company profits with the workers. When the organization is profitable, the employer shares profits with all, or a participating group of, employees. The amounts paid are given to a trustee and invested for the benefit of all of the beneficiaries of the plan. Profitability, however, is not always related to employee performance: A recession or new competitors may impact whether or not the company makes money. Furthermore, it is often difficult for employees to perceive their efforts as making much difference - Employee Stock Ownership Plans (ESOPs): Employee Stock Ownership Plans (ESOPs) offer companies a way to motivate and retain employees by giving them ownership through company stock, aligning their interests with the company's success. They provide tax benefits and can aid in succession planning by allowing business owners to sell to employees. However, ESOPs also carry risks, such as financial exposure for employees if the company's stock performs poorly, and the complexity and cost of administration. Companies may face cash flow pressures and liquidity challenges, particularly in private firms where employees can't easily sell their shares. While they can foster a strong ownership culture, there is also the potential for employees to focus on short-term stock performance at the expense of long-term company health.

comm 211 section 3 Flashcards

(109 cards)