HRMIS Week 12: Rewarding Employees

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Questions and Answers

What type of performance feedback is given when an employee's performance is above standard?

Corrective feedback

Critical feedback

Constructive feedback

Positive feedback (correct)

What is the main difference in performance evaluation criteria between non-management and management positions?

Non-management positions focus solely on competencies.

Management does not require feedback documentation.

Management roles use a detailed goals and competency evaluation format. (correct)

Non-management roles require more frequent evaluations than management.

What is typically included in the outputs of a performance management process?

Company-wide salary reports

Individual development plan (IDP) (correct)

Team evaluations

Employee exit interviews

Which of the following represents individual-level data in a performance management system?

Performance metrics Signup and view all the answers

What does a Human Resource Information System (HRIS) allow employees and managers to do during the review period?

Enter comments and observations Signup and view all the answers

What is a key limitation of performance feedback formats for non-management positions?

They typically have standardized criteria. Signup and view all the answers

Which of the following is NOT a component of the basic compensation system?

Professional development Signup and view all the answers

What could result from employees perceiving their compensation as unfair?

Reduced employee productivity Signup and view all the answers

What are the main processes involved in determining base pay?

Job evaluation and market benchmarking Signup and view all the answers

Which of the following is considered a short-term incentive program?

Profit sharing Signup and view all the answers

What type of data is considered internal data for compensation analysis?

Performance and salary history Signup and view all the answers

What is the primary purpose of benefits like workers’ compensation and disability insurance?

To assist employees during work-related injuries Signup and view all the answers

What kind of reports are commonly generated from compensation data?

Budget reports for managers Signup and view all the answers

In terms of benefits, what does the third set aim to provide?

Prevention and treatment of medical issues Signup and view all the answers

Which of the following statements best describes the commonality of employee involvement in compensation decisions?

Employees have little involvement in compensation decisions Signup and view all the answers

What type of data acts as the primary data outflow from compensation modules?

Payroll data Signup and view all the answers

What does performance management primarily focus on?

The exchange of inputs and outcomes between employees and employers Signup and view all the answers

What are the three parts of the performance management process?

Planning, observation, and feedback Signup and view all the answers

Why is it important for managers to define performance for their direct reports?

To ensure consistency in employee evaluations Signup and view all the answers

What should managers do after developing performance measures and standards?

Communicate them and set performance goals with the direct report Signup and view all the answers

In performance management, what is a performance contract?

A set of performance measures, with associated standards and goals for a defined period Signup and view all the answers

What aspect is significant when performance is difficult to observe or measure?

Focus on expected behaviors that lead to desired outcomes Signup and view all the answers

Why are nontraditional employees important in performance management?

They can contribute significantly to organizational success Signup and view all the answers

Which of the following best describes the purpose of performance observation?

To gather data on employee performance against set standards Signup and view all the answers

What is one primary purpose of paid time off for employees?

To allow employees to recharge and participate in significant life events Signup and view all the answers

What type of benefits falls under the miscellaneous benefits category?

Flexible working benefits like telecommuting and job sharing Signup and view all the answers

Who typically administers payroll in most organizations?

Finance or Accounting Department Signup and view all the answers

What is the primary purpose of data inputs in the payroll system?

To manage payroll additions, deductions, and compensations Signup and view all the answers

Which component is essential for ensuring the payroll system operates smoothly?

A flawless interface between HRIS and payroll software Signup and view all the answers

What is an example of special-purpose paid time off?

Bereavement leave due to a family member’s death Signup and view all the answers

Which of the following is NOT a part of the payroll process?

Employee performance assessments Signup and view all the answers

What benefit is commonly found in 'best companies to work for' lists?

Miscellaneous benefits such as tuition reimbursement and employee discounts Signup and view all the answers

Study Notes

Rewarding Employees (HRMIS Week 12)

Course outline includes Talent Management and HR planning, Recruitment and selection in an internet context, Training and Development, HR metrics and workforce analytics, HRIS privacy and security, HR in the digital world, and the future of HRIS, International HRM, and Social Media.

Performance Management

Performance, rewards, and payroll systems focus on the basic exchange of inputs and outputs between employees and employers.
Employees provide performance, and in return, employers provide rewards which are distributed through payroll systems.
Performance management systems are typically internal to the organization, but data must be linked to other systems (rewards, staffing, training and development, career development).
Key elements of performance management include planning, observation, and providing positive or corrective feedback.

Performance Planning

Performance planning is constructed in a way that is adaptable to various management styles.
Performance is first defined for a specific role, encompassing the employee's duties and responsibilities.
Outcomes and behaviors are described when observations are difficult to make.
Specific outcomes and behaviors are required to measure performance for each dimension.

Performance Contract

After performance standards are developed, the manager must communicate these standards to the employee.
The employee and manager collaborate to set goals for the performance period (typically a year).
The manager and employee's agreement on performance, standards and goals forms the performance contract.
Nontraditional employees (remote, contingent) are important to success and should be included in PM records.

Performance Feedback

Performance instruments and criteria vary based on job type.
Non-management positions typically have consistent criteria.
Management evaluations combine goals and objectives and competency assessment.
Positive feedback is provided for performance exceeding standards.
Corrective feedback is provided for performance below standards.
AI-enabled PM solutions facilitate immediate performance feedback for a better experience.
Chatbots can be used to address employee inquiries.

Outputs and Inputs

Performance summaries are usually annual, but some organizations use quarterly or semi-annual reports.
An important output is the Individual Development Plan (IDP) outlining steps to improve employee performance.
Inputs include various data levels (organizational data, job-level data, individual data).
Organizational data includes links to unit goals, strategies, and business plans.
Job-level data provides key tasks, responsibilities, and expected outcomes for individual performance plans.
Individual data forms the base for performance management, starting at individual level analysis

HRIS and Performance Management

Employees and managers can input comments and observations throughout the review period.
Documentation of positive and corrective feedback is crucial.
Systems can assist in identifying development activities to address performance challenges.
Performance management systems should interface with staffing and training applications.
The most important reports generated by HRIS include performance contracts and annual summary appraisals.

Compensation

Compensation is the primary outcome for most employees and a great deal of dissatisfaction can result from perceived unfairness.
Basic compensation systems include base pay, merit pay, short-term and long-term incentives, benefits, recognition, and awards.
Base pay is driven by job evaluation and market benchmarking processes.
Examples of short-term incentives include bonuses, gain sharing, and profit sharing.

Data Inputs (Compensation)

Internal data includes job descriptions, employee performance and salary history, and organizational unit information.
External data includes market survey data and reward practices.
Internal and external data are combined to develop job evaluation results, salary structures, and merit matrices.

Reports and Outputs (Compensation)

Managers receive budget reports.
Employees receive annual compensation reports detailing all compensation elements.
Data flows to payroll; federal, state, and local agencies.
Employees typically do not make compensation decisions; functions are for information.

Benefits

Benefits programs include pension plans, savings plans, Social Security, workers' compensation, insurance (unemployment, disability, life), medical, dental, and vision care.
Employees and families can be protected from costly illness and accident risks through preventative care.
Compensation benefits like special days (vacation, holiday, personal days, family leave) can re-energize employees and give them time with families.
Miscellaneous benefits like dependent care, flexible work, employee assistance programs, memberships, tuition reimbursement, and employee discounts are typical of those offered by top companies.

Payroll

Payroll is the transactional process of transferring compensation and withholding taxes.
Payroll modules often integrate with accounting systems, but not necessarily with the HRIS (so the interface between HRIS and the payroll system is critical).
Payroll is frequently outsourced in organizations.

Data Inputs (Payroll)

Payroll system inputs include compensation, benefits, and other additions/deductions.
Time and attendance data are typically entered in separate modules and processed within payroll.
External data from government agencies/tax authorities are crucial for accurate withholdings.

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Description

This quiz covers essential concepts of performance management, focusing on the relationships between employees and employers regarding rewards and payroll systems. Topics include performance planning, training, HR metrics, and the evolving role of HR in the digital world. Test your understanding of how HR practices influence workforce dynamics.