Employee Performance Classifications

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Questions and Answers

Which classification of employee meets expectations for performance and collaborates with others?

  • Solid citizen (correct)
  • High performer
  • Underachiever
  • Misfit

What percentage of the workforce is categorized as misfits, based on performance and competencies?

  • 15 percent
  • 7 percent (correct)
  • 3 percent
  • 10 percent

Which of the following is NOT typically considered a core institutional competency?

  • Organizational hierarchy (correct)
  • Technical/functional expertise
  • Teamwork
  • Leadership

How many institutional competencies do most organizations use for employee assessments?

<p>Between 7 and 11 (A)</p> Signup and view all the answers

Which is a key aspect of the performance measurement system within successful organizations?

<p>All individual and group performance measures must directly relate to organizational achievement. (C)</p> Signup and view all the answers

What is one benefit of having clear competency definitions in an organization?

<p>It provides clarity and specificity to expectations. (A)</p> Signup and view all the answers

What type of skills are considered core/institutional competencies?

<p>Behavioral and skill expectations (D)</p> Signup and view all the answers

Which competency is defined by effectively conveying ideas and understanding different perspectives?

<p>Communication (C)</p> Signup and view all the answers

What is indicated by the decline in median years of tenure with the current employer from 1996 to 2006?

<p>A general decline in lifetime employment (D)</p> Signup and view all the answers

How does employee turnover impact organizations in the context of institutional knowledge?

<p>It leads to a significant loss of hard-earned institutional knowledge (B)</p> Signup and view all the answers

Which factor is consistently ranked highly by employees in terms of their commitment and motivation at work?

<p>Work/life balance (B)</p> Signup and view all the answers

In what way might cultural context affect employee perceptions of respect at work?

<p>Influences how promotions and rewards are granted (D)</p> Signup and view all the answers

What is one of the primary challenges that human resource professionals face globally concerning talent?

<p>Attracting and retaining talented workers (B)</p> Signup and view all the answers

Which of the following statements best reflects a trend among today's and tomorrow's employees regarding their careers?

<p>Employees increasingly value diverse career experiences (D)</p> Signup and view all the answers

What is a significant disadvantage of hiring less-experienced workers?

<p>They necessitate additional training and supervision (A)</p> Signup and view all the answers

According to Mercer’s findings, which factor was notably less important for Asian employees compared to their North American and Western European counterparts?

<p>Base pay (C)</p> Signup and view all the answers

What is the primary difference between average and median salary?

<p>Average salary includes all values, while median salary reflects the middle value. (D)</p> Signup and view all the answers

When analyzing percentiles in salary data, which percentile indicates that 70% of salaries fall below this level?

<p>70th percentile (B)</p> Signup and view all the answers

In international compensation practices, which factor is considered critical for determining salary levels?

<p>Local cost of living differences (D)</p> Signup and view all the answers

What is the main advantage of using weighted averages over simple averages in salary data analysis?

<p>Weighted averages provide a more accurate reflection of larger groups. (C)</p> Signup and view all the answers

Which of the following statements best describes survey data consistency in salary surveys?

<p>Consistency implies that different methods of data collection yield the same results. (A)</p> Signup and view all the answers

What is a potential drawback of using average salary data without considering the distribution?

<p>It can misrepresent the salary range experienced by the majority. (A)</p> Signup and view all the answers

In salary analysis, what is a significant limitation of the simple average?

<p>It can be significantly affected by outliers. (C)</p> Signup and view all the answers

Which method is typically more reliable for assessing salary competitiveness within a specific industry?

<p>Salary benchmarking against industry-specific data (A)</p> Signup and view all the answers

Flashcards

Solid Citizen employee

Employees who meet performance and organizational competency expectations; work well with others.

Misfit employee

Employees who don't meet performance or organizational competency expectations; do not work well with others.

Performance Assessment

Measures actual results achieved by an employee in their responsibilities.

Core/Institutional Competencies

Important skills and behaviors needed for organizational success.

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Competency Definition

Detailed description of expected behaviors.

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Communication Competency

Skill of communicating effectively verbally and in writing.

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Employee Classification

Categorizing employees based on performance and competency assessments.

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Organizational Success Measures

Metrics to evaluate the overall achievements of an organization.

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Experienced worker loss

Retirement of experienced workers, leading to a decrease in institutional knowledge.

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Employee Tenure Decline

A decrease in the average length of time employees stay with a single employer.

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Attracting and retaining talent

A major challenge for HR professionals globally, as organizations fight for top talent.

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Diverse Workforce Engagement

The need for companies to effectively engage and retain a variety of employees.

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Employee Commitment Factors

Important factors contributing to employee motivation and loyalty, including respect, work type, and work-life balance.

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Cultural Context of Rewards

Different cultures value different rewards, such as performance-based promotions versus seniority-based promotions.

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Importance of Respect

Employees worldwide value respect and fair treatment as a significant aspect of work satisfaction.

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Work-life balance

A crucial motivator for modern employees, impacting their work commitment and performance.

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Merit Pay

A system where employees receive salary increases based on their individual performance evaluations.

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Job Analysis

A systematic process of studying jobs to understand their duties, responsibilities, and requirements.

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Job Evaluation

Comparing different jobs within an organization to determine their relative worth and set salaries accordingly.

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Salary Survey

Collecting data on wages and salaries paid by other companies in a similar industry to benchmark your own compensation.

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Benchmarking

Comparing your company's practices to those of industry leaders and best-in-class organizations to identify areas for improvement.

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Skills-Based Pay

A compensation system that rewards employees for acquiring and developing specific skills, regardless of their job title.

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Broadbanding

Simplifying the salary structure by combining multiple salary grades into broader bands, which allows for greater flexibility and encourages career development.

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Nonmonetary Awards

Recognition and rewards that are not financial, such as public praise, awards, and opportunities for growth.

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Study Notes

Employee Performance Classifications

  • Organizations categorize employees using a combination of performance, competencies, and potential assessments.
  • Solid Citizen: Meets performance expectations, collaborates effectively, and demonstrates organizational competencies (approximately 70% of workforce).
  • Misfit: Fails to meet performance expectations, struggles with collaboration, and lacks organizational competencies (approximately 7% of workforce).

Performance Assessment

  • Performance measurement tracks actual results achieved in areas of employee accountability.
  • Employee and group performance metrics should align with organizational success measures.

Competency Assessment

  • Core/Institutional competencies are crucial job behaviors and skills for both individual employee success and organizational success.
  • Most organizations use 7-11 core competencies.
  • Examples include communication, innovation, critical judgment, customer focus, interpersonal skills, leadership, teamwork, and technical expertise.
  • Competency definitions can be further detailed and differentiated into specific behaviors across organizational levels.
  • Retirement of Baby Boomers is leading to a loss of institutional knowledge that is hard to replace.
  • Younger workers require more on-the-job training, and there is a decline in long-term employment.
  • Employee tenure has decreased in recent years, as indicated by 1.7 fewer years of median tenure between 2006 and 1996 (U.S. Bureau of Labor Statistics data).

Employee Motivation and Retention

  • Attracting and retaining talent is the number one challenge for human resources professionals globally.
  • Factors influencing employee commitment and motivation include respect, job type, and work-life balance (North America, Asia, and Western Europe).
  • Cultural nuance exists, as respect may be linked to promotion/performance or seniority.
  • Different generations place different priorities on compensation.

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The Compensation Handbook PDF

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