HRM Exam #$3$ Study Guide

Some topics that would be helpful to know for EXAM #$3($Chapters $10,11,12,13,$ & $16)$

$($Note: This list is not comprehensive!! You still need to study from the book, PPTs$,$ and lecture notes!!$)$

Chapter $10$

$*$ Understand how to create an effective performance management process and the steps in the performance

management process.

$*$ Understand and be able to delineate validity, reliability, specificity, and acceptability.

$*$ Understand job performance measure fit with strategy, contamination, validity, and deficiency, as well as

interrater reliability and test$-$retest reliability

$*$ Understand the different methods for measuring performance and be able to apply them to employee

situations.

$*$ Understand the behaviorally anchored rating scale $($BARS$),$ behavioral observation scale, MBO & TQM$.$

$*$ Understand sources of performance information as well as errors that can occur during the performance

management process: similarity errors, halo error, central tendency error, contrast error, & distributional errors.

$*$ Understand the ways to reduce errors and promote fairness as well as limit political behaviors during the

appraisal system.

$*$ Understand giving performance feedback and the different approaches to conducting the feedback session.

$*$ Understand the legal requirements for performance management and how an organization can protect itself

against discrimination$/$unjust dismissal lawsuits as well as electronic monitoring and employee privacy.

Chapter $11($Completing the case study on Canvas will help you prepare for Exam #$3)$

$*$ Understand the difference between voluntary turnover and involuntary turnover and be able to apply these

terms to work situations.

$*$ Understand the employment$-$at$-$will doctrine and the exceptions to this policy.

$*$ Understand principles of justice: outcome$/$distributive fairness, procedural justice, and interactional justice.

$*$ Understand the legal requirements related to employee performance management and discharge.

$*$ Understand how employers can act fairly and minimize the likelihood of a lawsuit when conducting a

workplace search.

$*$ Understand notification of layoffs and the WARN Act. Understand the progressive discipline systems.

$*$ Understand the different types of unacceptable behaviors for which organizations need to establish rules and

consequences.

$*$ Understand HR$$s role in developing a formal discipline process for the workplace.

$*$ Understand employee assistance programs, outplacement counseling, employee engagement, job withdrawal,

and job dissatisfaction, as well as job satisfaction and how to monitor job satisfaction.

Chapter $12$

$*$ Understand what percentage of revenues is subsumed by labor costs.

$*$ Understand job structure, pay level, and pay structure.

$*$ Understand the legal requirements for pay, equal employment opportunity laws, the equal pay law, and

comparable worth.

$*$ Understand the two sides of minimum wage and possible drawbacks of minimum wage in terms of social

policy.

$*$ Understand FLSA requirements for overtime and be able to differentiate between exempt and nonexempt.

$*$ Understand the Davis$-$Bacon Act of $1931$ and the Walsh$-$Healy Public Contracts Act of $1936.$

$*$ Understand economic influences on pay including labor markets and the consumer price index and its relation

to compensation.

$*$ Understand how pay$-$levels are decided and how to gather information about market pay. Be able to discuss

benchmarking and the BLS$.$

$*$ Understand employee judgements about pay fairness and equity theory.

$*$ Understand pay structures and the difference between pay grades, pay ranges, and pay differential.

$*$ Understand pay during military duty and issues surrounding executive pay.

Chapter $13$

$*$ Incentive pay as well as features and characteristics of an effective and well$-$designed incentive pay plan.

$*$ Understand the connection between incentive pay and employee performance.

$*$ Understand and be able to differentiate between piecework rate plan, Scanlon plan, profit sharing plan,

differential piece rate, and gainsharing. You should also know advantages and disadvantages of each.

$*$ Understand merit pay $($including compa$-$ratio$)$ as well as advantages and disadvantages of this incentive.

$*$ Understand the differences between a performance bonus and a sales commission.

$*$ Understand stock ownership plans and the relationship between employee performance and this plan.

$*$ You should understand the difference between individual, team, and pay for organizational performance.

$*$ Be familiar with the issues surrounding executive pay and why there is such public scrutiny in recent years.

$*$ Understand ethical issues surrounding pay as well as issues with executive pay.

Chapter $16$

$*$ Understand the different types of organizations and how to differentiate between them $($Global$,$ transnational,

international, and multinational$)$

$*$ Understand culture, what a cultural environment is$,$ the different cultural, economic, political systems, and

how