A compiled list of all vocab for the second half of the course (chapters 7 to 12)

15 Pages

Business Administration
Course Code
BUS 381
Melissa Mc Crae

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Chapter 7 Performance Appraisal: The Key to Effective Performance Management Summative Provides information with which promotion and salary decisions can be made. Formative Provides an opportunity for managers and employees to review each employees work-related behaviour, achievements, and contributions to the organization. Performance factors Represent the core knowledge, skills, and abilities that will be used to evaluate employee performance. Performance The quantifiable and measureable criteria that communicate how well, how often, standards or how quickly tasks are to be completed. Criterion deficiency When performance factors that are critical to job success are omitted and not assessed. Criterion When performance factors that are not relevant or that are outside of the contamination employees control are identified and assessed. Graphic rating scale Simplest and most popular technique for appraising performance. Puts more focus on the person rather than the behaviour, and are less legally defensible because of their subjective and ambiguous nature. Forced distribution Similar to a bell curve, this technique places predetermined percentages of rates method in performance categories. Though it can be demotivating to those employees classified as below average, it is used by almost 30 percent of organizations. Critical incident method The supervisor keeps track of desirable and undesirable examples and incidents of each employees work-related behaviour. It is useful as a supplement to other techniques, but not as a standalone system to base salary decisions upon. Behaviourally anchored rating scale (BARS) Anchors a quantifiable scale with specific behavioural examples of good and poor performance. Behaviour observation scale (BOS) Often paired with the BARS format. It identifies critical incidents, but instead assesses how frequently these behaviours were demonstrated. Management by objectives (MBO) A strucutured, results-based evaluation system through which employees, in collaboration with their managers, set performance goals linked to the organizations strategic direction. It is a difficult system to establish, as SMART goals must be measured, and it is time-consuming to implement. Balanced scorecard Tracks and measures employee performance against an organizations strategy and metrics. It is used by over 50 percent of Fortune 500 companies. Four key domains are measured (financial, internal business processes, learning and growth, customer) and employees can commit to a domains objective, measures, targets, and initiatives. Technology-based methods A rapidly growing method of performance appraisal. The performance appraisal market is the fastest growing area of human resources software. Logrolling A possible outcome of peer appraisals, in which all peers get together to rate each other high. Upward feedback Giving anonymous evaluations of the performance of ones supervisor. www.notesolution.com360-degree appraisal Also known as multisource feedback, performance feedback is anonymously collected from all around an employee, including from supervisors, managers, subordinates, peers, and internal and external customers. It is one of the most popular forms of performance evaluation. This can enhance an employees perception of the fairness of the evaluation. Halo effect Rating an employee on one trait biases the way in which the person is rated on other traits. Central tendency When managers tend to avoid high and low ratings on a rating scale, instead giving marks that congregate in the middle. Extremes If a manager is too lenient or too strict, the ratings can all lump at either the high end of the rating scale or the low end of the scale. Appraisal bias Individual differences between employees, such as age, race, and gender, can affect their rating by a manager. Recency effect When ratings are based on an employees most recent performance only, whether good or bad, and ignores past performance. Similar-to-me bias When a manager gives higher ratings to employees with whom they have something in common with. Unclear standards Leaves open the possibility for differences in rating between managers. Chapter 8 Establishing a Strategic Compensation System Total compensation All forms of pay and benefits given to employees arising from their employment. Piecework compensation Ties compensation directly to the amount of production that a worker produces. Popular as an incentive pay plan rewarding employees based on performance. EmploymentLabour Standards Acts Laws that set minimum standards regarding pay, including minimum wage, maximum hours of work, overtime pay, paid vacation, paid statutory holidays, termination pay, record keeping of pay information, and more. Overtime does not need to be paid to executives, administrative staff, and professional employees (doctors, engineers, tech workers). Pay equity acts Provides equal pay for work of equal or comparable value performed by both men and women. Only apply to public-sector employees, but to private as well in Ontario + Quebec. Procedural justice The policies and procedures for determining how pay is calculated are perceived as fair Distributive justice The rate of pay for a given job is perceived as fair. Distributive injustice can occur when a high- www.notesolution.com
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