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Pay for Individual Performance: Piecework Rates
• Piecework rate
– A wage based on the amount workers produce
– Straight piecework plan
• Incentive pay in which the employer pays the same rate per piece, no matter
how much the worker produces
– Differential piece rates
• Incentive pay in which the piece rate is higher when a greater amount is
produced.
What is an Exit interview?
= a meeting of a departing employee with the employee‘s supervisor and/or a human resource specialist to discuss the employee’s reasons for leaving
- A well-conducted exit interview can uncover reasons why employees leave.
- When several exiting employees give similar reasons for leaving, management
should consider whether this indicates a need for change.
Processes that can contribute to the success of incentive programs.
- Take complaints about pay seriously
- Do not fall very far below market pay levels
- Realize that most of the best employees want strong pay-performance relationships
- Evaluate current pay systems with respect to the strength of pay- performance relationships
- Examine whether executive pay is moving in the same direction, and at roughly proportionate rates, as employee pay increases
Give two arguments why a results approach to measure job performance might decrease the firm’s productivity.
• Results do not inform about employees’ strengths and weaknesses
→ more difficult to offer adequate trainings (works better if behaviors are measured)
• Not all relevant outcomes can be measured easily, e.g. helping
other employees; employees do not show this behavior anymore, as it is not rewarded
→ less cooperation and helping behaviors etc. → lower productivity
• Employees choose strategies to achieve the desired results that harm in the company on the long run (unethical behaviors; risky strategies)
Define ways to measure the success of the selection method.
Reliabilty Measurement: statistical tests are used to compare results over time ( correlation coefficients, a higher correlation coefficient signifies a greater degree of reliability)
Validity Measurement: Criterion-related, Content, Construct
How is workflow related to an organization's structure?
Work Flow is the process of analyzing tasks necessary for production of a product or service. Within an organization, units and individuals must cooperate to create outputs.
The organization’s structure brings together people who must collaborate to efficiently
produce desired outputs.
– Centralized
– Decentralized
– Functional
– Product or Customer
Explain: Content and Construct Validity
• Content Validity
Consistency between the test items or problems and the kinds of situations or problems that occur on the job.
• Construct Validity
Consistency between a high score on a test and high level of a construct (i.e., intelligence or leadership ability) as well as between mastery of this construct and successful performance of the job.
Name methods for designing a job so that it can be done efficiently and motivating.
1. Design for Efficiency
2. Design for Motivation
3. Design for Safety and Health
4. Design for Mental Capacity
Explain the Role of HR recruitment.
- Role of HR recruitment is to build a supply of potential new hires that
the organization can draw on if need arises.
- Recruiting: any activity carried on by the organization with the primary
purpose of identifying and attracting potential employees.
- Selection: deciding which candidates would be the best fit
Explain how HRM contributes to an organization's performance.
Strategic HRM:
1. Analysis and design of work
2. HR planning
3. Recruiting
4. Selection
5. Training and development
6. Compensation
7. Perfermance management
8. Employee relations
=> all lead to company performance
Identify the responsibilities of human resource departments.
1. Job Analysis
– The process of getting detailed information about jobs.
2. Job Design
– The process of defining the way work will be performed and the tasks that a given
job requires.
3. Recruitment
– The process through which the organization seeks applicants for potential
employment.
4. Selection
– The process by which the organization attempts to identify applicants with the
necessary knowledge, skills, abilities, and other characteristics that will help the
organization achieve its goals.
5. Training
– A planned effort to enable employees to learn job-related knowledge, skills, and
behavior.
6. Development
– The acquisition of knowledge, skills, and behaviors that improve an employee’s
ability to meet changes in job requirements and in customer demands.
7. Performance Management
– The process of ensuring that employees’ activities and outputs match the
organization’s goals.
– The human resource department may be responsible for developing or obtaining
questionnaires and other devices for measuring performance.
8. Planning Pay & Benefits
– How much to offer in salary and wages.
– How much to offer in bonuses, commissions, and other performance-related pay.
– Which benefits to offer and how much of the cost will be shared by employees.
9. Administering Pay & Benefits
– Systems for keeping track of employees’ earnings and benefits are needed.
– Employees need information about their benefits plan.
– Extensive record keeping and reporting is needed.
10. Maintaining Positive Employee Relations
– Preparing and distributing employee handbooks and policies
– Dealing with and responding to communications from employees
– Collective bargaining and contract administration.
11. Establishing and Administering Personnel Policies
– Organizations depend on their HR department to help establish and communicate
policies
– All aspects of HRM require careful and discreet record keeping.
12. Ensuring Compliance with Labor Laws
– Government requirements include filing reports, displaying posters, avoiding
unlawful behavior
13. Supporting the Organization’s Strategy:
– Human resource planning
• identifying the numbers and types of employees the organization will require
to meet its objectives.
– Change management
– Evidence-based HR
• Collecting and using data to show that human resource practices have a
positive influence on the company’s bottom line or key stakeholders.
Define human resource management
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