H.R. MGMT 3

Experience Rating

# of employees laid off and expense of paying benefits yields org. ratings. Discourages lots of layoffs.

How much of compensation is spent on benefits?

$.30 on every $

Commission-based plans mostly encourage employees:

close the sale

How unions affect productivity

Increases productivity, but doesn't mean org will make a profit, b/c union wages are higher.

Straight Piecework Plan

Org. pays some amnt per unit regardless of production

4 Advantages for Benefits

1). It's a big hassle but it is good for orgs. Keeps employees satisfied and attracts best people. 2) Orgs can get better insurance deals-less expensive 3). Legislation says you have to provide some benefits. 4). Tax laws allow indv. to not pay income tax on benefits

Benefits Required by Law

1). Social Security 2). Unemployment 3). Workers Comp 4). FMLA

FMLA (Unpaid Family and Medical Leave)

50 or more employees within 75 mi radius - required to provide 12 weeks of unpaid leave for ppl with kids. Employer must ensure employee gets the same job back.

Sick Leave

A lot of the time you have to accumulate sick days. Sometimes they roll over from yr. to yr.

Retirement Plans

About 1/2 employees in private orgs participate in emp. r plans

Taft/Hartley Act

Added a list of prohibited union activities to the NLRA, such as: jurisdictional strikes, wildcat strikes, solidarity or political strikes, secondary boycotts, secondary and mass picketing, closed shops, and monetary donations by unions to federal political campaigns. It also required union officers to sign non-communist affidavits with the government. Union shops were heavily restricted, and states were allowed to pass right-to-work laws that outlawed closed union shops. Furthermore, the executive branch of the Federal government could obtain legal strikebreaking injunctions if an impending or current strike imperiled the national health or safety,

St. Hr. Plan Adv/disadv

Adv-Encourages efficiency. Dis-does not necessarily ensure high quality customer service, only works if ppl are motivated to take x amnt of extra $ over a comfortable pace of work.

Craft Union

All members have one skill

Life Insurance

Beneficiaries get 2x your salary if you die

S.S.

Covers 90% of ppl. Spouses receive 1/2 of yours if they dont have it. Born after 1960 you have to be 67 before full benefits. Can get partial benefits at 62 Max is $25000 a year Employers and Employees taxed on S.S.

Group Insurance

Covers doc visits, hospital, surgical expenses

Differential Piecework Plan

Different amnts based off what one produces. At a level or below you get x amnt per unit, however, above that standard, one gets paid more.

Incentive Pay

Different types of pay linked to performance. Not just job but performance-based

4 types of W. Comp

Disability income, medical care, death benefits, and rehabilitative services.

PPO

Don't have to use ppl in system but you have to pay more of the expenses yourself. Most Americans choose PPO's.

Union Steward

Elected by chapter to represent the union to mgmt

No Fault Liability

Employees do not have to prove employers were grossly negligent. Protection for lawsuits.

401(k)

Employer and employee can match $ each check.

Contributory Plan

Employer and employee contribute

Non-Contributory Plan

Employer contributes alone

Merit Pay Adv/Dis

Expensive, may be misleading on performance appraisals, not much increase in raise, not very motivating, discourages teamwork, is arbitrary.

Standard Hour Plan (gainsharing)

Extra $ for work done in less than what the established standard time alloted for the work. In gainsharing, profit is shared btwn company and employee.

Performance Bonuses Adv/Dis

Flexible to reward certain behaviors...causes setback on new skills learned. Can be subjective.

Piecework Plan Adv/Dis

Great motivation; easy to understand...Not good in jobs that are not production-based. Does not foster teamwork, does not encourage good quality work.

Defined Benefit Plan (Pension Plan)

Guarantees certain level of retirement, using a formula. Usually 25-35% of salary.

Paid Leave Typically Includes

Holidays, vacations, elections, jury duty (social goods), no legal requirement.

Workers Comp.

Hurt on job. 9/10 employees covered. 2/3 tax free of what you were making in your position. Going to be more expensive for more dangerous jobs.

Some Optional Benefits

Paid vacation, sick days, life and med insurance, retirement plans

Sales Commissions

Pay calculated as % of sales.

NOT true of merit programs:

Merit pay increases are not rolled into base pay

Merit Pay

Pay increases linked to performance evaluations.

Performance Bonuses (lump sum bonuses)

One time payment for a certain level of performance.

COBRA

Optional insurance 35 mo. after you leave a company you still get the group rate from the company. Has to be a qualifying event such as a lay-off or hr reduction from full to part, or death of a spouse.

How was the NLRA violated in Norma Rae?

Org. "dominated" and "interfered" with unionization and intimidated workers. Discriminated against employees (mainly Norma) to discourage acts of support for a labor organization.

EWP

Org. pays for preventative health measures-like gym, pamphlets, life coaches.

Unemployment Insurance

Payment for involuntary unemployment. Keeps stimulating the economy. Encourages orgs to keep ppl working. Protects ind. skillz. Never going to make more than $392 a mo. Comes from federal and st. taxes on employers. Varies by st.

Disability Insurance

Short term- 6 mo. (most orgs) Long term-beyond 6 mo. 50-60% of paycheck

Sales Commissions Adv/Dis

Unlimited pay opportunity-hard-working ambitious risk takers attracted to job- doesn't foster lasting customer relationships.

Piecework Plan

Wage based on amnt. produced

When is a standard hour plan likely to succeed?

When employees want the extra money more than they want to work at a pace that feels comfortable.

$ Purchase Plan

X% of salary is invested with each check. Get contributed plus earnings on investments when you retire.

Defined Contribution Plan

You can contribute a certain amnt of money to an acct. and when you retire you see how the acct did.

HMO

You pay premium that covers w/e service you get. You can only go to docs in the HMO network.

Which is NOT true of piecework pay plans?

a)piecework rates have a direct link btwn how much work the employee does and the amount earned. *b)are most suited for organizations with complex jobs c). relatively rare d). easy for employees to understand and employees think they are fair.

Factors that lead to decrease in unionization in 70's-today

federal laws protecting the workers were passed that lowered the need for unions. Better H.R. practices negated unions.

Family Friendly Benefits

helps mitigate work family conflicts. Includes: family leave, child care, college savings accts (529's), Elder Care

Industrial Union

takes in a lot of professions but within the same industry

NOT true of performance bonuses:

they are among the most expensive forms of incentives