career development? 3) Performance appraisal - Generally limited to past performance 1) Skills assessment exercises and no feedback for improvement and - Designed to identify an employee’s direction. skills. Employee lists her - Future oriented appraisals give accomplishments as a workbook important insights about strengths, exercise. weaknesses and available career - In a workshop people may share their paths. accomplishments and others identify 4) Promotability forecasts the skills. - Decisions made by managers - An employee rates his skills on two considering the improvement dimensions: proficiency and degree to potential of their subordinates. which she enjoys using it. They - Allows organizations to identify people multiply these to get the score for that with high improvement potential. skill. - Potential employees are given 2) Interests inventory developmental experiences such as - A measure of a employee’s executive training seminars. occupational interests. - Outstanding performance in a project - Inventories can provide insight into can make an employee stand out. careers that fit employee’s interests. 5) Succession planning - If employee is interested in numbers - Focuses on preparing employees to fill or research this may refer to an executive positions in the future. academic occupation. - Formal: Organization determines the - A test can be scores are high in a competencies and skills they are particular area, they have looking for according to the strategic 3) Values clarification plans of the company. - Involves prioritizing personal values - Manager selects and trains her - Employee lists values like security, replacements. power, money and family. - Informal: Can be considered as - If values security – public sector discriminatory. - If values money – private sector 3. What are the most common career 2. Describe the types of organizational development programs? assessment in career development? 1) Monitoring - Senior – junior monitoring 1) Assessment centers - Advising and role modeling - Situational exercises such as - Can be voluntary(informal) or interviews are held in order to involuntary(formal) understand the managerial potential - Voluntary is better of an employee. - Important for minorities - Provides feedback about strengths and o Long term weaknesses of the employee. o Personal - Employees get a development o Social program based on their results. 2) Coaching 2) Psychological testing o Task relationship - Useful to determine which career fits o Impersonal the characteristics of the employee. o Formal - Interest inventories and personality tests falls into this category. - An introvert may want to work alone. - Ongoing or spontaneous meetings to - Will it establish different plans by discuss the employee’s career organizational level and/or employee development group (elitism)? - (-) Managers may be responsible from 6) Below-Market Versus Above-Market a lot of employee and couldn’t make Compensation time for each one of them. - Will employees be compensated at - (-) Managers may lack of coaching below-market levels, at market levels, skills or at above-market levels? 3) Job rotation 7) Monetary Versus Nonmonetary Awards - Not always a good choice for - Will the compensation plan emphasize employees who have a narrow & motivating employees through focused career plan. monetary rewards like pay and stock 4) Tuition assistance option - Paying for the education of the - Will it stress nonmonetary rewards employee such as interesting work and job - Increases commitment to the security? organization. 8) Open Versus Secret Pay - Will employees have access to 4. Describe the criteria to develop a information about other workers’ compensation system. compensation levels and how compensation decisions are made 1) Internal Versus External Equity (open pay), or will this knowledge be - Will the compensation plan be withheld from employees (secret perceived as fair within the company pay)? - Will it be perceived as fair relative to 9) Centralization Versus Decentralization of what other employers are paying for Pay Decisions the same type of labor? - Will compensation decisions be made 2) Fixed Versus Variable Pay in a tightly controlled central location, - Will compensation be paid monthly on - Will they be delegated to managers of a fixed basis—through base salaries the firm’s units? - Will it fluctuate depending on such preestablished criteria as performance 5. Compare and contrast job-based and skill- and company profits? based compensation tools. 3) Performance Versus Membership - Will compensation emphasize 1) Job Based performance and tie pay to individual - Dominant approach or group contributions - Not all jobs are equally important to a - Will it emphasize membership in the firm organization—logging in a prescribed - Mechanistic and inflexible number of hours each week and - Lower costs progressing up the organizational - Not applicable to freelancers ladder? 2) Skill based 4) Job Versus Individual Pay - Less common approach - Will compensation be based on how - The greater the variety of job-related the company values a particular job skills the more worker get paid - Will it be based on how much skill and - More flexible knowledge an employee brings to that - Suitable for higher levels job? - Higher compensation and pay cost 5) Egalitarianism Versus Elitism - Will the compensation plan place most employees under the same compensation system (egalitarianism) 3) Cooperation is less critical to 6. Describe the advantages, disadvantages, and successful performance effectiveness conditions of pay-for- - Less competition btw researchers performance systems based on individual - More competition btw instructors performance? 7. Describe the advantages, disadvantages, and Advantages effectiveness conditions of pay-for- 1) Rewarded performance is likely to be performance systems based on team repeated performance? - More pay=more performance 2) Financial incentives can shape an Advantages individual’s goals over time 1) Rewarding all team members - If organizational goals match with equally based on group outcomes individual goals, employees will care 2) Team plans foster group about how good they serve not how cohesiveness much they get paid. 3) Team plans aid performance 3) Assessing the performance of each measurement employee helps the firm achieve individual equity Disadvantages 4) Individual-based plans fit in with an 1) Possible lack of fit with individualistic culture individualistic cultural values 2) Free-riding effect Disadvantages 3) Social pressures to limit 1) Individual plans may create performance competition 4) Difficulties in identifying - Common company goals may be lost meaningful groups in the competition 5) Intergroup competition and 2) Individual plans may lead to sour decline in overall performance relationships - Between employees and managers Conditions 3) Many managers tend to equalize pay 1) Work tasks are so intertwined increase rates among employees that it is difficult to single out who - Performance differences may be did what unseen 2) The firm’s organization and 4) Tying pay to goals may promote technology facilitate team-based single-mindedness incentives - They don’t bother increasing their 3) Employees are committed to their performance work 4) The firm needs to prevent Conditions employees from pursuing their 1) Individual employee contributions personal projects can be accurately isolated 5) The objective is to foster - Suitable for sales people not for entrepreneurship in self-managed scientists work groups 2) Job demands autonomy - Success/failure tied to the employee’s performance - Performance of a store and its manager can be measured easily and accurately 8. Describe the advantages, disadvantages, and Disadvantages effectiveness conditions of pay-for- 1) Employees’ savings at considerable risk performance systems based on plant or unit 2) High exposure to macroeconomic forces performance? 3) Limited effect on productivity Rewarding all workers in a plant/unit based 4) Long-run financial difficulties on the efficiency of the entire plant/unit Conditions Advantages 1) Firm size is large 1) Productivity gains resulting from 2) Plants or business units are employee involvement interdependent within the firm 2) Improvements in the production 3) The firm faces cyclical ups and downs in process due to employee input product demand 3) Development of a cooperative 4) There are complementary incentive plans work culture 4) No need to measure individual 10. Describe the components of benefits contributions strategy. 1) Benefits mix Disadvantages • Total compensation strategy 1) Protection of low performers • Organizational objectives 2) Criteria problems • Workforce characteristics a. Inflexibility 2) Benefits amount b. Unprofitability 3) Flexibility of benefits c. Relative easiness d. Limited opportunity 11. Compare and contrast different types of 3) Management-labor conflict health insurance plans.
Conditions 1) Traditional health insurance plans
1) Firm size is small to medium - Flexibility 2) Technology is not an alternative - Most common to workers 2) Health maintenance organization plans 3) Data on the historical - Wide range of services performance of different units - Flat annual fee within the firm is on hand - Comprehensive 4) Corporate culture is not - Limited # of hospitals to reduce the hierarchical cost 5) There should be a relatively stable 3) Preferred provider organization plans demand for the firm’s product - Flexibility and wide range of services - Network of doctors and hospitals 9. Describe the advantages, disadvantages, and - Monthly pay, lower than 1 higher than effectiveness conditions of pay-for- 2 performance systems based on corporate or - Combine some of the best features of organizational performance? HMOs (managed health care and a Rewarding employees based on the entire wide array of medical services for a corporation’s performance fixed fee) with the flexibility of the traditional health insurance plan. Advantages - People who select non-PPO doctors 1) Profit sharing plans and hospitals pay additional fees 2) Employee stock ownership plans 3) Financial flexibility for the firm 4) Increased employee commitment 5) Tax advantages 12. Compare and contrast different types of - Protection from bad working retirement plans. situations 1) Defined benefit plans 2) Contractual rights - Fixed retirement income based on the - During an interview if a manager average of the employee’s last three promises job security this can count as to five years’ earnings before contract retirement - Rights based on legally binding - Encourages staying in the company promises - Attractive to the risk averse 3) Other rights - Stable - Rights not necessarily legally 2) Defined contribution plans protected - Retirement income depending on the - Expected to trait respectfully each success of the plan’s investments other - Company stocks, treasury bills etc. will be provided 16. What is employment-at-will? What can limit - Retirement income remains unknown employment-at-will? and depends on the company success - End an employment relationship at - Attractive to the risk lover any time at any reason - (-) for employees, (+) for employer 13. What appeal procedures can be used as part of employee feedback programs? Limited by 1) Laws and contracts - Raise employees concerns about the - Compensation laws requires company course of actions. to pay severance pay - Employee concerns should be taken 2) Public policy exceptions seriously and evaluated fairly. - An employee may not be discharged 1) Open-door programs for a reason that is covered by law - Most informal - You cannot fire somebody because - Employees are free to access any she refuses to act unethically manager about any problem and 3) Implied contracts manager is required to investigate 4) Lack of good faith and fair dealing 2) Speak-up programs - Firing somebody to not to pay 3) Hotlines severance because they are close to - Anonym and confidential the retirement 4) Ombudsmen - Neutral person arabulucu 17. What are the general challenges in employee 5) Grievance panels and union grievance rights? procedures 1) Random drug testing - Most formal form - To select employees randomly without 14. What are the steps of employee assistance suspicion programs? - Invasion of privacy 1) Identifying troubled employees 2) Electronic monitoring 2) Visiting a program counselor - Prevent & reveal employee theft 3) Solving the problem - Employee may feel pressured 4) Returning or continuing to work, or 3) Whistle-blowing terminating the employment - Telling the truth regardless of the 15. Describe the three types of employee rights. consequences 1) Statutory rights - Refers to the public rights and - Rights protected by specific laws officially or unofficially punished - Includes protection from - What to do? Create an official whistle discrimination policy. 4) Moonlighting - Supervisor is counselor not adversary. - Allow employees hold a second job in - Managers need training two conditions - Costly, Counseling sessions require a Should not be a competitor lot of time to be effective, and this is Should not effect the time that both the supervisor and current job performance employee are not working on other 5) Office romance tasks. - Performance decrease in case of bad 19. Describe organizations’ strategies to manage experience union and/or relations. - Possible sexual harassment case 1) Acceptance strategy 18. Compare and contrast progressive and - Cooperation with unions positive discipline. - Unions accepted as employees’ 1) Progressive Discipline legitimate rep - A series of management interventions - Large companies are more likely to that gives employees opportunities to have this strategy correct undesirable behaviors before - Unions is a decentralize tool for big being discharged. companies - Progressive discipline procedures are 2) Avoidance strategy warning steps, each of which involves - Union accepted as destructive force a punishment that increases in against the company severity the longer the undesirable - Small companies more likely to have behaviors persist. - Small companies are usually - Serious violations, sometimes centralized referred to as gross misconduct, can - Union substitution result in the elimination of several - They don’t need to unionise – you steps and sometimes even begin at provide very good conditions the last step, which is discharge. - Union suppression - For infractions that fall between the - You threat employees with firing if categories of minor violation and they serious violation, one or two steps in 20. What is the difference between distributive the procedure are skipped. and integrative bargaining? 2) Positive Discipline Bargaining power is one party’s ability to get - Encourages employees to monitor the other party to agree to its terms. Parties their own behaviors and assume in negotiations use two tactics to increase responsibility for their actions. their bargaining power which are distributive - Positive discipline is similar to bargaining and integrative bargaining. progressive discipline in that it too Distributive Bargaining uses a series of steps that increase in Distributive bargaining tactic focuses on urgency and severity until the last convincing the other party that the cost of step, which is discharge. disagreeing with the proposed terms would - Positive discipline replaces the be very high. In the case of collective punishment used in progressive bargaining, the cost of disagreement is often discipline with counseling sessions a strike. Also, distributive bargaining tactics between employee and supervisor. tend to be used when the two sides are - Rather than depending on threats and competing for very limited resources. punishments, the supervisor uses Labor uses distributive bargaining when it counseling skills to motivate the attempts to convince management that it is employee to change. willing and able to sustain a long strike that - Rather than placing blame on the will severely damage the company’s profits employee, the supervisor emphasizes and weaken the company’s position against collaborative problem solving. its competitors. As an example, in 1993, the Teamsters Union presented UPS with several 21. Describe the steps in union grievance key bargaining demands, including substantial procedures. pay and benefit increases, improved job 22. Compare and contrast unionized and non- security, conversion of part-time jobs to full- unionized firms in terms of staffing. time jobs, and less stringent productivity 23. Compare and contrast unionized and non- standards. When UPS, after intense contract unionized firms in terms of career talks and contract extensions, presented the development. Compare and contrast Teamsters with a contract that did not come unionized and non-unionized firms in terms close to meeting the union’s demands, the of compensation. Compare and contrast Teamsters suspended negotiations and set a unionized and non-unionized firms in terms strike date. Later on, the Teamsters’ president of employee relations. signed a contract that provided a good economic package and an end to some of the stringent work rules. On the other hand Management uses distributive bargaining when it tries to convince the union that it can sustain a long strike much better than union members, who will have to survive without their paychecks. For example, in 1975 management at the Washington Post tried to persuade the newspaper’s unions that it could sustain a strike and still get the paper out because it had cross-trained managers to do the jobs of union workers. In this instance, management was able to pull it off. Distributive bargaining tactics can also be used when union leaders believe that union members are willing to accept the cost of a long strike that is likely to cause a vulnerable company severe economic damage. To illustrate, in 1998 the UAW (United Auto Workers) struck General Motors over the issue of preventing union jobs from being given to outsourcing firms. GM’s motivation for outsourcing was to reduce its labor costs. However, after a two month strike costing GM $2.2 billion in losses, the management was convinced to make concessions. Integrative Bargaining Integrative bargaining tactic focuses on convincing the other party that the benefits of agreeing with the proposed terms would be very high. This bargaining type is similar to a problem-solving session in which both parties are seeking mutually beneficial alternatives. For example, Goodyear Tire & Rubber Co. and the United Steelworkers Union (USW) negotiated an agreement that illustrates the benefits of integrative bargaining. Because of Goodyear’s need to become globally