mgt 461 final
Rucker plan
A ratio is calculated that expresses the value of production required for each dollar of total wage bill
Unemployment Insurance
A source of income for workers who have lost their jobs through no fault of their own
Minimum Wage vs. "Living Wage"
At local levels it provides a minimum wage tailored to living costs in an area -Because they are so narrowly tailored, it is speculated that their real intention is to reduce any cost savings a municipality might receive from outsourcing
Rating Approaches
Attribute(adjective) -based approaches (e.g., graphic rating scale) ask managers to make judgments about worker characteristics (e.g., cooperative, creativity, etc.) -Advantage: Relies on a variety of performance dimensions instead of one .-Disadvantage: Attributes predict the person's potential to perform well rather than their actual performance.
Average Cash Compensation
Average cash compensation includes average salary level plus variable compensation payments •The variable component will rise and fall in line with business performance
Implementing benefits program
Communicate about the benefits program claims processing cost containment
Challenges to Pay for Performance Programs
Do only what you get paid for unethical behaviors adversely affects cooperation lack of control difficulties in measuring performance job dissatisfaction and stress
Performance-dimension training
Exposes supervisors to the performance dimensions to be used in rating
Child Labor
FLSA restricts hours and conditions of employment for minors -Persons under 18 cannot work in hazardous jobs -Persons under 16 cannot be employed in jobs involving interstate commerce except for nonhazardous work for a parent or guardian
Equal Pay Act (1963) cont.
Factors other than sex-Shift differentials-Temporary assignments-Bona fide training programs-Differences based on ability, training, or experience-Other reasons of "business necessity"• "Reverse" Discrimination-The group penalized is white males
A compa-ratio less than 1 means that, on average, the rates exceed the intended policy.
False
Agency theory argues that employees prefer risky pay as rewards can be greater than a salary.
False
An advantage of group incentives is that it leads to increased line-of-sight.
False
Comparable Worth
If jobs require comparable skill, effort, and responsibility, the pay must be comparable, no matter how dissimilar the job content may be
Tell-and-Listen interview:
Initially, manager communicates the strong & weak points of the job performance •Second part, the employee's feelings about the appraisal are thoroughly explored
Individual Plans
Merit Pay Lump sum bonuses Individual spot awards individual incentive plans
MISC benefits
PTO, LWOP, Child Care, Partner Benefits and Legal insurance
health and medical benefits
general health, health care: cost control strategies, STD, LTD, Dental and Vision
cost control strategies
motivate employees to change their demand for health care via changes in design or admin of policies
Legally required benefits
social security, unemployment compensation, workers compensation
Workers compensation
employees are eligible even if their actions caused the accident covers work-related injuries covered by state and not federal laws
Problem-solving interview:
stimulate growth and development by discussing the challenges, innovations, satisfactions, and dissatisfactions the employee has encountered since the last appraisal interview
two theories of discrimination behavior
-Disparate treatment•The effort/skill/responsibility must be substantially greater in one of the jobs compared -Disparate impact•Practices that have a differential effect on members of protected groups are illegal, unless the differences are work-related
One objective of the overtime provision of FLSA is to share available work by making the hiring of additional workers a less costly option than the scheduling of overtime for current employees.
True
Performance-standard training provides raters with a standard of comparison or frame of reference for making appraisals.
True
Developing Performance Measures
Valid Measures: -Does your performance measures reflect the actual performance of your employees? •If yes, then measures are valid .•If no, then measures are either deficient or contaminated. Clear (Specific) Performance Measurement Standards
LTD
take over when short-term plans expire.»Usually underwritten by insurance, provides 60 to 70 percent of pay for two years, up to life.
Tell-and-Sell interview:
the ability to persuade an employee to change
Title VII of the Civil Rights Act (1964)
•Prohibits discrimination on the basis of sex, race, color, religion, or national origin in any employment condition
Scanlon plans
Designed to lower labor costs without lowering the level of a firm's activity
Four strategies for better measuring performance
(1) Improving the format; (2) Selecting the right raters; (3) Understanding the way raters process information; & (4) training raters to improve rating skills.
Pay Discrimination
-Access discrimination- the denial of particular jobs, promotions, or training opportunities to qualified women or minorities -Valuation discrimination - looks at the pay women and men receive for the jobs they perform
retirement benefits
401k plan ESOP or profit sharing plan income tax deduction for the firm problematic during recruitment of high-talent executives
Prevailing Wage Laws
Davis-Bacon Act -Walsh-Healey Public Contracts Act -Service Contract Act -National Foundation for the Arts and Humanities Act
Guidelines for conducting the feedback meeting
-Separating Evaluation From Development -Targeting Behaviors Or Outcomes Rather Than The Individual -Being Balanced In Your Appraisal -Encouraging Employee Participation
Evaluating or Appraising Employee Performance
1) Customer satisfaction; (2) Employee internal growth and commitment; (3) Operational efficiency in internal processes; & (4) Financial measures.
Administering the Benefits Program
1Who Should be protected or benefited? 2How much choice should employees have among an array of benefits 3how should benefits be financed 4are the benefits legally defensible
COBRA
Consolidated Omnibus Budget Reconciliation Act; law to provide terminated employees or those who lose insurance coverage because of reduced work to be able to buy group insurance for themselves and their families for a limited amount of time.
FMLA
Coverage:-Employers with 50 or more employees •Eligibility:-Must have worked at least 1,250 hours for the employer in the previous year•Qualifying events:-Specified family or medical reasons•Qualifying event coverage:-Unpaid leave up to 12 weeks per year
Fair Labor Standards Act (FLSA)Exempt versus Non-Exempt
Salary basis test:Paid at least $455 per week ($23,660 per annum)ANDJob duties test:Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees
Steps in the Performance Management Process
Step 1: Defining the Job and Performance Criteria-Identifying the Performance Dimensions-Developing Performance Measures •Step 2: Evaluating or Appraising Employee Performance •Step 3: Providing Feedback
PPACA (Patient Protection and Affordable Care Act)
Targets the uninsured with a goal of providing health care coverage to everyone
Employee or Independent Contractor?
Tax law enforced by the Internal Revenue Service (IRS) and the Employee Retirement Income Security Act (ERISA) enforced by the Department of Labor are relevant in classifying the worker as an employee or independent contractor
Performance Dimension
The specific tasks and activities for which employees are responsible .-The Essential Functions of the Job (from the Job Description)
Global Performance Measure
The use of a single score to reflect an individual employee's overall performance.
A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.
True
A problem with incentive pay plans is workers may end up focusing exclusively on behaviors that are rewarded.
True
High performance ratings are nearly always statistically related to high merit increases.
True
If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate.
True
If red circle rates become common throughout an organization, then the design of the ranges and the evaluation of the jobs should be reexamined.
True
In contrast to ranking formats, rating formats require raters to evaluate employees on some absolute standard rather than relative to other employees.
True
The behaviorally anchored rating scales are inexpensive to develop but time-consuming to use.
False
Pay-For-Performance Building Blocks
Does it make sense to use incentives here? Link to your firm's strategic objectives Set complete standards Make sure the program is motivational Be Scientific
Outcome-Based Rating Approaches: Management By Objectives
Emphasizes participatively set goals that are tangible, verifiable, and measurable.-Goal Specificity-Participative Decision Making-An Explicit Time Period-Performance Feedback
Halo error is the error that occurs when an employee is downgraded across all performance dimensions exclusively because of poor performance in one dimension.
False
Scanlon plans are designed to lower labor costs by lowering the level of a firm's activity.
False
Subordinate ratings are more accurate when they are not anonymous.
False
Strategy 2 - Select the Right Raters
Focus on who might conduct the ratings and which of these sources is more likely to be accurate - 360-degree feedback •Assesses employee performance from five points of view: supervisor, peer, self, customer, subordinate •Is flexible •Improves employee understanding and self-awareness •Promotes communication between supervisors and staff •Promotes better performance and results
Rater-error training
Goal is to reduce psychometric errors by familiarizing raters with their existence
HIPPA (Health Insurance Portability and Accountability Act)
Lessens an employer's ability to deny coverage for a preexisting condition -Prohibits discrimination on the basis of health-related status •Stringent privacy provisions added compliance problems for both the HR and information technology people
Minimum Wage
Minimum-wagelegislation is intended to provide an income floor for workers in society's least productive jobs •If state & federal legislation cover same job, the higher rate prevails
Overtime and Hours of Work
Overtime provision of the FLSA requires payment at one-and-a-half times the standard for working more than 40 hours per week
Agency theory
Pay directs and motivates employee performance; employees prefer static wages as opposed to performance-based pay
The Equal Pay Act (1963)
Prohibits wage discrimination on the basis of gender when employees perform equal work in the same establishment.
Performance-standard training
Provides raters with a standard or frame of reference for making appraisals
Pay-for-Performance
an incentive program that rewards employees for meeting specific, individual goals
Salary Level: Top Down
budgeting begins with an estimate from top management of the pay increase budget for the entire organization
Social Security
provides a foundation of basic security for us workers and their families -old age benefits -dependents of retired or disable workers -surviving family members of a deceased worker -lump-sum death payments issue- number of retired workers is rising without a corresponding increase in the number of contributors to offset the cost (money comes from contributions made by employees, employers and the self-employed during working years.)