Human Resource Management (8502)

Q. 1 (a)

Quote discriminatory personnel management practices in recruitment, selection, promotion, transfer, layoffs, and benefits.

Answer: Discriminatory Recruitment Practices Word of Mouth You cannot rely upon word-of-mouth dissemination of information about job opportunities when your workforce is all (or substantially all) white or all members of some other class such as all female, all Hispanic, and so on. Doing so reduces the likelihood that others will become aware of the jobs and thus apply for them. Misleading Information It is unlawful to give false or misleading information to members of any group or to fail or refuse to advise them of work opportunities and the procedures for obtaining them. Help Wanted Ads Help wanted male and help wanted female advertising classifications are violations unless gender is a bona fide occupational qualification for the job.96 The same applies to ads that suggest you discriminate based on age. For example, you cannot advertise for a young man or woman. Discriminatory Selection Standards Educational Requirements Courts have found educational qualifications to be illegal when (1) minority groups are less likely to possess the educational qualifications (such as a high school degree) and (2) such qualifications are also not job related. Tests Courts deem tests unlawful if they disproportionately screen out minorities or women and are not job related. Preference to Relatives You cannot give preference to relatives of current employees with respect to employment opportunities if your current employees are substantially nonminority. Height, Weight, and Physical Characteristics
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Requirements for physical characteristics (such as height and weight) are unlawful unless the employer can show theyre job related. For example, the court held that a companys requirement that a person weigh a minimum of 150 pounds for positions on its assembly lines discriminated unfairly against women. Maximum-weight rules generally dont trigger adverse legal rulings. However, some minority groups have a higher incidence of obesity, so employers must be sure their weight rules dont adversely impact these groups. To qualify for reasonable accommodation, obese applicants must demonstrate they are 100% above their ideal weight or there is a physiological cause for their disability. In practice, employers sometimes treat overweight female applicants and employees to their disadvantage, and this is a potential problem. Arrest Records Unless security clearance is necessary, you cannot ask an applicant whether he or she has ever been arrested or spent time in jail, or use an arrest record to disqualify a person for a position automatically. There is always a presumption of innocence until proven guilty. In addition, (1) arrest records in general are not valid for predicting job performance, and (2) police have arrested a higher proportion of minorities than whites. Thus, disqualifying applicants based on arrest records automatically has an adverse impact on minorities. However, you can ask about conviction records, and then determine on a case-by-case basis whether the facts justify refusal to employ an applicant in a particular position. Application Forms Employment applications generally shouldnt contain questions about applicants disabilities, workers compensation history, age, arrest record, or citizenship. Personal information required for legitimate tax or benefit reasons (such as who to contact in case of emergency) is best collected after you hire the person.

Discharge Due to Garnishment A disproportionately higher number of minorities are subjected to garnishment procedures (in which creditors make a claim to a portion of the persons wages). Therefore, firing a minority member whose salary is garnished is illegal, unless you can show some overriding business necessity. Sample Discriminatory Promotion, Transfer, and Layoff Practices
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Fair employment laws protect not just job applicants but also current employees.98 Any employment practices regarding pay, promotion, termination, discipline, or benefits that (1) are applied differently to different classes of persons; (2) adversely impact members of a protected group; and (3) cannot be shown to be required as a BFOQ or business necessity may be held to be illegally discriminatory. For example, the Equal Pay Act requires that equal wages be paid for substantially similar work performed by both men and women.

Personal Appearance Regulations Employees have filed suits against employers dress and appearance codes under Title VII, usually claiming sex discrimination but sometimes claiming racial discrimination. A sampling of what courts have ruled to be acceptable or unacceptable follows: Dress. In general, employers do not violate Title VIIs ban on sex bias by requiring all employees to dress conservatively. For example, a supervisors suggestion that a female attorney tone down her attire was permissible when the firm consistently sought to maintain a conservative dress style and it also counseled men on dressing conservatively.

Hair. Here again, the courts usually rule in favor of the employers. For example, employer rules against facial hair do not constitute sex discrimination because they discriminate only between clean-shaven and bearded men, a type of discrimination not qualified as sex bias. In many cases, courts also rejected arguments that grooming regulations (such as prohibitions against cornrow hairstyles) are racially biased and infringe on black employees expression of cultural identification. In one case involving American Airlines, the court decided (in favor of American) that a braided hairstyle is a characteristic easily changed and not worn exclusively or even predominantly by black people.

Uniforms. When it comes to discriminatory uniforms and suggestive attire, however, courts have frequently sided with the employee. For example, a banks dress policy requiring female employees to wear prescribed uniforms consisting of five basic color-coordinated items but requiring male employees only to wear appropriate business attire is an example of a discriminatory policy. And requiring female employees (such as waitresses) to wear sexually
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suggestive attire as a condition of employment has also been ruled as violating Title VII in many cases.

(b)

Define and discuss diversity management.

Answer: The Chancellor's Committee on Diversity defines Diversity as: "The variety of experiences and perspective which arise from differences in race, culture, religion, mental or physical abilities, heritage, age, gender, sexual orientation, gender identity and other characteristics." So why is it when many people think of diversity, they think first of ethnicity and race, and then gender? Diversity is much broader. Diversity is otherness or those human qualities that are different from our own and outside the groups, to which we belong, yet present in other individuals and groups. It's important to understand how these dimensions affect performance, motivation, success, and interactions with others. Institutional structures and practices that have presented barriers to some dimensions of diversity should be examined, challenged, and removed. Managing Diversity To address diversity issues, consider these questions: what policies, practices, and ways of thinking and within our organizational culture have differential impact on different groups? What organizational changes should be made to meet the needs of a diverse workforce as well as to maximize the potential of all workers, so that country can be well positioned for the demands of the 21st century? Most people believe in the golden rule: treat others as you want to be treated. The implicit assumption is that how you want to be treated is how others want to be treated. But when you look at this proverb through a diversity perspective, you begin to ask the question: what does

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respect look like; does it look the same for everyone? Does it mean saying hello in the morning, or leaving someone alone, or making eye contact when you speak? It depends on the individual. We may share similar values, such as respect or need for recognition, but how we show those values through behavior may be different for different groups or individuals. How do we know what different groups or individuals need? Perhaps instead of using the golden rule, we could use the platinum rule which states: "treat others as they want to be treated." Moving our frame of reference from what may be our default view ("our way is the best way") to a diversity-sensitive perspective ("let's take the best of a variety of ways") will help us to manage more effectively in a diverse work environment. Managing Diversity is Different from Affirmative Action Managing diversity focuses on maximizing the ability of all employees to contribute to organizational goals. Affirmative action focuses on specific groups because of historical discrimination, such as people of color and women. Affirmative action emphasizes legal necessity and social responsibility; managing diversity emphasizes business necessity. In short, while managing diversity is also concerned with underrepresentation of women and people of color in the workforce, it is much more inclusive and acknowledges that diversity must work for everyone. Consequences of Ignoring Diversity Ignoring diversity issues costs time, money, and efficiency. Some of the consequences can include unhealthy tensions; loss of productivity because of increased conflict; inability to attract and retain talented people of all kinds; complaints and legal actions; and inability to retain valuable employees, resulting in lost investments in recruitment and training.

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Q. 2 Illustrate and explain each of the seven steps in the HR Scorecard approach to create human resource management systems.

Answer: There are seven steps involved in using the HR Scorecard to create a strategy-oriented HR system. Following are seven steps in HR Scorecard approach to create human resource management system as under: Step 1: Define the Business Strategy Step 2: Outline the Companys Value Chain Step 3: Identify the Strategically Required Organizational Outcomes Step 4: Identify the Required Workforce Competencies and Behaviors Step 5: Identify the Strategically Relevant HR System Policies and Activities Step 6: Design the HR Scorecard Measurement System Step 7: Periodically Evaluate the Measurement System

1. Define the business strategy In this step, management translates its broad strategic plans into specific actionable goals. 2. Outline the companys value chain Here the manager identifies the strategically relevant outcomes and required employee behaviors by identifying the value chain, which identifies the primary activities that create value for customers and the related support activities. This step allows managers to better understand the activities that drive performance in their company.

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3. Identify the strategically required organizational outcomes In order to achieve its strategic goals, every company must produce critical, strategically relevant outcomes. 4. Identify the required workforce competencies and behaviors Competencies and behaviors such as personal accountability, working proactively, motivation, courteous behavior, and commitment drive organizational performance by producing strategically relevant organizational outcomes. 5. Identify the strategically relevant HR system policies and activities The question in this step is what HR system policies and activities will enable us t o produce those workforce competencies and behaviors?. These policies and activities are often referred to as HR enablers, which create and make possible the HR performance drivers. 6. Design the HR Scorecard measurement system In this step, the question is how are the organizational outcomes, workforce competencies and behaviors, and HR system policies and activities measured? These types of measures allow the company to assess HRs performance objectively and quantitatively, and also enable the HR manager to build a measurable and persuasive business case for how HR contributes to achieving the companys strategic financial goals. 7. Periodically evaluate the measurement system The HR Scorecards various measures will not always stay the same, and sho uld be3 evaluated periodically to ensure they are still valid.

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Q. 3

(a)

Discuss the nature of job analysis, including what it is and how its used.

Answer: Meaning of Job Analysis

Job analysis is the process of analyzing jobs. It is very broad concept. Therefore Before describing the meaning and nature of the job analysis, it is important to discuss about the meaning of the job. Job- job is the bundle of related task. For example, inspecting resume of a job seeker is a task. The whole lot of tasks relating to recruitment constitutes job. Job Analysis- it is the process of collecting job related information. Such information helps in the preparation of job description and job specification.

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From the above Figure we can see that the process of job analysis results into job description and job specification: Job Description- it indicates what all a job involves. For example, job title, location, job summary, duties machine, tools, equipments, material and forms used, supervision given and received and working conditions.

Job Specification- the capabilities that the job holder should possess form part of job specification. For example, education, training, experience, judgment, initiative, physical effort, physical skills, communication skills and emotional characteristics. Nature of Job Analysis Everything about the workforce, its collective skills, morale, experience, and motivation depended on attracting and selecting the right employees. About Job Analysis: You can say that job analysis has a meaning as the procedure through which you determine the duties of these positions and characteristics of the people to hire them. Job analysis used for writing job description and job specifications. Job description also means a list of what the job entails. Job specifications got meaning what kind of people to hire for the job.

Supervisor or Human resource specialists normally collect one or more data through job analysis: -Human behaviors: The HR specialist collects data such as sensing, communicating, deciding and writing. -Work activities: He or she collects information such as cleaning, selling, teaching or painting. Included how, why, and when the employee performs each activity
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-Performance standards: The employer may also want information about the jobs standards which will be used by management to appraise employees. Usage of Job Analysis Information Recruitment and Selection: Job analysis provides information about what job entails and what human characteristics are required to perform the job. The information, in form of job descriptions and specifications, helps management decide what sort of people to recruit and hire. Compensation: The information of job analysis is crucial for estimating the value of each job and its appropriate compensation (salary and bonus).Compensation usually depends on jobs required skill and degree of responsibility, education level and safety hazards, etc.

(b)

Explain the main techniques used in employment planning and forecasting.

Answer:

The basic purpose of having a human resource plan is to have an accurate estimate of the number of employees required, with matching skill requirements to meet organizational objectives. It provides information about the manner in which existing personnel are employed, the kind of skills required for different categories of jobs and human resource requirements over a period of time in relation to organizational objectives. It would also give an indication of the lead time that is available to select and train the required number of additional manpower.

More specifically, HR planning is required to meet the following objectives:

i. Forecast personnel requirements: HR planning is essential to determine the future manpower needs in an organisation. In the absence of such a plan, it would be difficult to have the services of right kind of people at the right time.

ii. Cope with changes: HR planning is required to cope with changes in market conditions,
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technology, products and government regulations in an effective way. These changes may often require the services of people with the requisite technical knowledge and training. In the absence of an HR plan, we may not be in a position to enlist their services in time.

iii. Use existing manpower productively: By keeping an inventory of existing personnel in an enterprise by skill, level, training, educational qualifications, work experience, it will be possible to utilise the existing resources more usefully in relation to the job requirements. This also helps in decreasing wage and salary costs in the long run.

iv. Promote employees in a systematic manner: HR planning provides useful information on the basis of which management decides on the promotion of eligible personnel in the organisation. In the absence of an HR plan, it may be difficult to ensure regular promotions to competent people on a justifiable basis.

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Q. 4 (a)

Explain and illustrate the problems to avoid in appraising performance.

Answer: Incomplete, inaccurate, vague, and subjective performance evaluations are common fare in many organizations. Unfortunately, they are also the incriminating evidence in any resulting wrongful termination or discrimination case. While no supervisor or manager should give an unproductive employee ambiguous feedback simply to avoid a possible lawsuit, managers must be mindful of the legalities of their performance management practices. Should a former employee file charges against your company, your performance management reports can either make or break your defense. With that in mind, are your supervisors and managers keeping accurate and detailed performance appraisals for every employee? Would the reports you have on file adequately defend your decision to terminate, transfer, or demote an employee? The fact is that many evaluators unknowingly distort performance reviews, which could ultimately hurt the company in a legal battle. When you know why such distortions occur, you can take the necessary steps to rectify the situation, practices, and procedures. 1. Inadequate preparation: Supervisors often feel that they have too much to do and insufficient time. Since performance appraisals are neither intellectually challenging nor enjoyable, many supervisors procrastinate doing the paperwork. As a result, the appraisals lack attention to important details such as language and consistency, and they are often void of complete descriptions of the employees' work performance. Supervisors should plan ahead and take the necessary time to perform and document appraisals. 2. Lack of clear standards: Clear, measurable performance standards are essential for accurate and legally defensible performance appraisals. Objective standards,

communicated clearly and consistently to employees, are the only way to ensure that employees understand what is expected of them. Clear standards apply to specific and significant tasks of the position, reflect acceptable or satisfactory levels of performance, are expressed precisely, focus on critical and specific aspects or features of performance, and address both measurable performance criteria (such as production goals) and elements of judgment and initiative.
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3. Inconsistency in ratings among supervisors: Employees frequently allege employment discrimination when supervisors reprimand or discipline them for infractions that other employees routinely get away with. Sometimes this occurs with the same supervisor, but more often it is the result of different perceptions among supervisors about what constitutes acceptable performance. Supervisors should clarify performance standards for like jobs to achieve a consensus regarding performance-rating definitions. 4. Rating personality rather than performance: Supervisors may respond quickly or strongly to personality traits, such as aggressiveness, that prevent them from objectively evaluating performance . The appraisal should focus only on actions, accomplishments, and specific instances of unacceptable performance. 5. The "halo effect": A halo effect occurs when a supervisor gives an excellent employee top ratings in all areas or gives an unsatisfactory employee low ratings in all areas. The halo effect results from the supervisor's tendency to let a strong judgment in one area color his or her judgment of other behaviors. In reality, poor employees usually have some strengths, just as high achievers have some weaknesses. Job-specific performance standards can minimize the halo effect. 6. Inappropriate time span: Performance appraisals should cover the entire rating period and the employee's progress from one rating period to the next. Supervisors should address each element of performance, including improvement from the immediately preceding appraisal. Supervisors who refer back to incidents that occurred before the last appraisal are potentially unfair to the employee and risk letting subjectivity into their analysis. 7. The "contrast effect": The exceptionally good (or bad) performance of one or more employees may greatly distort the evaluations that others receive. While contrasting the relative contributions of a group of employees con tributes constructively to the appraisal performance process, the rating of one employee should not shift the ratings for others except in extraordinary circumstances (such as a limited bonus pool). 8. Inadequate observation: Supervisors who are not thoroughly familiar with all aspects of an employee's performance may feel compelled to complete standardized forms completely. Such supervisors should not conduct the appraisal, as they are often unable to arrange for a sufficient number of observations or to completely review written reports or
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other work the employee produces. Let supervisors know they can ask for help with appraisals when needed to reduce the risk of subjectivity that is not job-related and assumptions about the employee that are based upon personal characteristics. 9. Overemphasis on uncharacteristic performance: Unusual behavior is often more memorable than typical behavior. Supervisors observing behavior that seems uncharacteristic should make an effort to determine whether it is part of a pattern or is related to a medical problem or disability. 10. Unduly negative ratings: Sometimes supervisors deflate an employee's performance rating because they believe the employee will benefit from a "push." Other times they are attempting to subdue a troublesome employee, to use fear as a motivation to improve, to encourage a problem or marginal employee to leave, to develop a pretextual reason for dismissal or discipline, to create a record to justify a discharge, or to "cover up" performance problems of other employees or problems within the supervisor's department. 11. Inflated ratings: When supervisors are uncomfortable being candid with an employee for fear of discrimination charges, they may inflate the employee's performance rating. To make the appraisal easier, keep a file of work samples, reports, or information that reflects performance results during the rating period. Other reasons for inflating ratings include: to boost an employee's spirits or encourage a marginal employee to work harder, to avoid confrontation with a hostile employee or to avoid claims of discrimination, to get difficult employees transferred out of the department, to boost the relative rankings of their subordinates or department vis-a-vis other departments, to keep from revealing the department's problems to management, or to save time and avoid the level of documentation required to support performance appraisals that might trigger discipline and/or discharge. 12. Subjective language in written appraisals: Even carefully constructed written appraisals may contain language that the courts could misconstrue during a trial. Sometimes assumptions about people based on their personal characteristics invade the appraisal process. Even when the comment is "positive" if it references gender, age, or other characteristics, it may reveal a mixed motive. Some examples include:

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(b)

List and discuss the pros and cons of six appraisal methods.

Answer:

Performance appraisals help employees understand their job duties, learn what they could do better and receive praise for work done well. In most organizations, the performance appraisal process happens once a year and is administered by superiors to subordinates. Some organizations subscribe to the "360" performance appraisal system, wherein employees receive their annual appraisal from superiors, subordinates, peers and customers. Company leaders have several options for appraisal methods, all designed to aid in various aspects of performance management.

Graphic Rating-Scale Method

The graphic rating-scale method lists employee traits alongside a scale that indicates to what degree the employee possesses each trait. Performance appraisers must rate the employee on his performance of each trait or his level of possession of each characteristic. Traits might include knowledge, initiative, work quality and speed. This method offers precision and limits bias; however, employees will be left questioning why they received such ratings unless space for comments is provided. Appraisals are of little use unless they inform employees about improvement techniques.

Behaviorally Anchored Rating Scale

The behaviorally anchored rating scale method uses a scale created by job designers to list the behaviors critical to the job in both positive and negative ways. These critical activities are called "behavioral anchors." For the appraisal, any employee behavior that matches an anchor is listed on a vertical scale with higher perforce behaviors at the top, low performance behaviors at the bottom and average behaviors in the middle.

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BARS Pros & Cons

A BARS analysis gives a quick visual as to where an employee stands because it's easy to see clusters of behavior points at the top for high performers and at the bottom for low performers. The drawback to BARS methods is that each one takes a considerable amount of time to develop. The system may be infeasible in organizations that have a higher number of different types of jobs.

Management by Objectives

Management by Objectives is an entire management philosophy created by Peter Drucker in 1954. Under this system, management sets goals -- related to quality, productivity, profits or other metrics -- and uses the performance appraisal to monitor employee progress toward the goals. This helps organizations with strong organizational cultures to instill those values in every employee. However, MBOs don't function well as an appraisal method separate from the management system. Organizations using MBO appraisals usually include MBO as part of their entire management process.

Advantages of doing performance appraisals:

They provide a record of performance over a period of time. They provide an opportunity for a manager to meet and discuss performance with an employee.

Provide the employee with feedback about their performance and how they completed their goals.

Provide an opportunity for an employee to discuss issues and to clarify expectations with their manager.

Offer an opportunity to think about the upcoming year and develop employee goals. Can be motivational with the support of a good reward and compensation system.

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Disadvantages of performance appraisal:

If not done appropriately, can be a negative experience. Are very time consuming, especially for a manager with many employees. Are based on human assessment and are subject to rater errors and biases. If not done right can be a complete waste of time. Can be stressful for all involved.

Finally a performance appraisal is only as good as the performance management system it is part of. If an organization merely does performance appraisals for the sake of doing them, they are wasting their time. But if they strategically incorporate performance management into their strategic plan to implement business goals, they will provide a process to accomplish those goals.

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Q. 5 (a)

Explain the employees, managers, and employers career development roles.

Answer: Ideally, the employer, employee and manager all play roles in planning guiding and developing the employees career. Well look at each. ROLES IN CAREER DEVELOPMENT Individual Role 1) Accept responsibility for your own career 2) Assess your interests, skills, and values 3) Seek out career information and resources. 4) Establish goals and career plans. 5) Utilize development opportunities 6) Talk with your manager about your career 7) Follow through on realistic career plans. Manager 1) Provide timely and accurate performance feedback 2) Provide development assignments and support. 3) Participate in career development discussions with subordinates. 4) Support employee development plans. Employer 1) Communicate mission, policies and procedures 2) Provide training and development opportunities including workshops. 3) Provide career information and career programs 4) Offer a variety of career paths. 5) Provide career oriented performance feedback. 6) Provide mentoring opportunities to support growth and self direction.
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7) Provide employees with individual development plans. 8) Provide academic learning assistance programs. The employees Role While the employer and manager play roles in guiding employees careers, this is one task that on employee should ever abandon to his or her manager or employer. For the individual employee, career planning means matching individual strengths and weaknesses with occupational opportunities and threats. In other words, the person wants to pursue occupation, jobs, and a career that capitalize on his or her interests , aptitude , values and skills. He or she wants to choose occupations, jobs, and a career that make sense in terms of projected future demand for various types of occupations. The consequences of a bad choice (or of no choice) are too severe to level such decisions to others. (b) Discuss competency-based pay and other current trends in compensation.

Answer: COMPETENCY-BASED PAY Competencies are the knowledge-skills and the attitude needed by any individual employee to carry out their job effectively. These can be incorporated into a pay system to reward individuals who positively contribute to the overall values and objectives of an organization. This is competency based pay: rewarding the way people work, not just recognizing what they can deliver. How should competency based pay be introduced? Several factors need to be fully integrated within an organization before competency based pay can be introduced:

an employee appraisal process must already exist managers must already have been trained to assess competencies

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staff should be made aware of the competencies required and how to demonstrate them when it comes to their appraisals

all employees must give their full commitment the system must be fair so that all employees are included

CURRENT TRENDS IN COMPENSATION In todays day and age, compensation packages have evolved to include perks and benefits that were unheard of a generation ago. Gone are the days of meeting with employees once a year to give them a pat on the back and the standard four percent merit increase. With the world progressing and peoples wants and needs shifting, in order to stay competitive, an organizations compensation program must continually change. Merely updating the way a company pays employees may not be enough to keep pace. Because the current marketplace is so competitive, in order to attract, retain and motivate the kind of people who are committed to the success of an organization, it may necessitate a complete compensation system overhaul. There are a number of catalysts present that have strongly influenced the direction and philosophy behind employee compensation packages. Things like the changing business environment including new technology like the Internet, downsizing due to sluggish economic growth, and the transition to flexible or contingency work forces have caused companies to rethink their approach to compensation. A new approach to compensation includes new and enticing ways to attract and motivate employees with a wide range of perks designed to enhance individual effort and, in some cases, promote team building and chemistry. Another trend in employee compensation approaches has been to focus on work/life balance initiatives. This has become important to many employees, particularly due to the rise in two wage-earner families. Employees are willing to forego large pay increases for advances in the area of work/life balance. For example, rather than the strictly structured eight hour work day schedule Monday through Friday, offering flexible work schedules are more attractive to employees as a way to achieve more of a balanced lifestyle. Some employers embrace alternate work arrangements like ten hour work days scheduled four days a week, job sharing between employees and allowing employees to work from home to offer employees added flexibility.

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Many organizations have also added indirect compensation elements focused on employee wellness initiatives. Things like having health clubs on-site with free memberships for employees, offering yoga classes or massage therapy during the work day, offering complementary breakfasts, arranging social outings like sporting events and concerts and by offering free wellness seminars for staff. And when it comes to the direction actual financial compensation packages are heading, there have been a number of changes in this regard. There has been a shift from pay for job and status to pay for individual employee skills and contributions. As well, discretionary bonuses have been replaced by incentive awards for achieving defined goals and objectives. Innovative compensation programs also include: * Broad-banding or reducing the number of pay grades in an organization while expanding the actual salary ranges. The benefit here is being able to expand the actual pay for performance and competency component. * Competency-based programs involves identifying the skills employees need to possess in order to meet expectations in a given position. The key benefit here is that the employee continually upgrades their skills and the emphasis is on paying the individual and not the job. * Incentive compensation this is pay that is directly connected to the performance of the individual or the team and has been found to increase employee performance in the right environment. The right environment means employees are actually motivated by money, the employees efforts and results are measurable and the potential rewards are significant. The final trend in compensation to discuss is stock options, the leading means of compensation for executives and managers in the 1990s. With stock options, the employee owns the option to buy stock in their company at a price that is fixed beforehand and is exercised by a specific date. The goal here would be to motivate the employee to work hard to create the greatest possible value for their company.

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