MGT 3410 CH11-14
What are union organizers allowed to do?
1. Distribute information in public areas at the work location or in public areas of the city 2. Call employees and visit them at their homes
Tiered Formulary
A prescription drug plan that divides drugs into groups based primarily on cost
Trade/Craft Unions
A union formed based on the type of work a person does
Host Country National
An MNC employee who is working in their home country, which is not the country of incorporation
Regional Firm
An MNC whose operational structure groups operations by geographic territories
Home Country National
An employee from the MNC's country of incorporation who is working for the MNC in another country
Hofstede's Cultural Dimensions: Explanation of Power Distance
Higher power distance: Respect and recognition of power structure within an organization Low power distance: More equitable distribution of power throughout levels of the organization
Which country has the highest unionization rate currently?
Iceland - 90.7%
Flexible Spending Account
If you don't spend it, lose it automatically. Comes out of your paycheck
Hofstede's Cultural Dimensions: EX of Individualism vs Collectivism
Individualism: A sales person achieves an individual sales goal by skipping team sales calls Collectivism: An employee spends all their workday helping their team finish a project instead of completing a training course assigned to them
Hofstede's Cultural Dimensions: Explanation of Individualism/Collectivism
Individualism: Emphasis is placed on employee's goals over the goals of the work group Collectivism: Emphasis is placed on work group's goals over individual employee's goals
Closed Shop
Individuals must be a union member to be hired and employers had to go to the union first when hiring new employees
Hofstede's Cultural Dimensions: Explanation of Indulgence vs Restraint
Indulgence: Allows for immediate satisfying of human needs Restraint: Prefers suppressing immediate needs for more regulated behavior
Hofstede's Cultural Dimensions: EX of Indulgence vs Restraint
Indulgence: Pay employees bonuses monthly or quarterly in cash Restraint: Pay employees bonuses quarterly or yearly into their retirement acts
What is the point of group/org incentives; 4 examples of groups
Intended to motivate employees to work as a collective unit EX: 1. Couple of individuals 2. Entire departments 3. Business units 4. Entire companies
What is a major dispute, what is a minor dispute?
Major Dispute: Bargaining disputes Minor Dispute: Disputes over the interpretation or application of a labor contract
Do most public-sector employees have the right to strike?
No, because their work is deemed vital to the public interest
In which part of the US are unionization rates higher?
Northeast
What funds Social Security?
Payroll Taxes 12.40% of an employee's salary, shared equally between the employee and employer on earnings up to $142,800 (as of 2021) Self-employed individuals must pay the full 12.40%
Secondary Boycott
Picketing a neutral employer not directly engaged in a labor dispute
Recognitional Picketing
Picketing an employer to force them to recognize a union that has not been certified as the representative of the employees
What is UNITE HERE's slogan?
"One Job Should Be Enough"
Workers join unions for many reasons, including:
- Higher wages - Better health and accident benefits - Contractual provisions that ensure a safer workplace, greater job security, and having a voice in the workplace
5 Features of ACA
1. Ending preexisting conditions 2. Requiring employer health plans to cover young adults up to age 26 on their parent's plan 3. Ending lifetime limits on coverage for all new health insurance plans 4. Limiting administration costs by insurance companies 5. Providing certain types of preventive care at no cost
Merit Pay Increase
A compensation adjustment based on the results of an employee's performance evaluations
Grievances
A complaint by one party to a collective bargaining agreement that the other is not living up to the terms of the contract
Account-Based Health Plan (ABHP)
A consumer-driven plan that pairs a group health plan with a tax-advantaged medical spending account
Contract Bar Rule
A decertification petition cannot be filed when there is a collective bargaining agreement in effect unless it is within 90 days of the expiration of the contract
AFL-CIO
A federation of national and international trade and industrial labor unions
Grievance Process
A formal procedure defined in a labor contract for resolving grievances
Deferred Profit Sharing Plan
A group-based incentive plan in which the incentive money paid to an employee is put into a retirement account for that employee
Leveraged ESOP
A group-based incentive plan that allows a trust to borrow funds against the company's future earnings, and as the debt is repaid, employees receive shares of the stock held by the ESOP in employee accounts
Stock Option Plan
A group-based incentive plan that provides employees with the right to purchase shares of their company's stock at some established price )often its market value) for a given period of time
Profit Sharing Plan
A group-level incentive plan in which company profits are shared with employees
Point-of-Service Plan (POS)
A hybrid of a health maintenance organization (HMO) and a preferred provider organization (PPO) in which individuals can also receive treatment outside the network, but must pay a higher deductible
Change to Win (CTW)
A labor federation that seeks to ensure that every working person has a living wage, benefits to support their family, and dignity in retirement
Excelsior List
A list of names and addresses the company must supply of employees who are eligible to vote in the representation election for a union
Lump-Sum Merit Bonus
A one-time payment based on an employee's level of performance
Interest
A party's basic needs, desires, concerns, and fears
Free Rider
A person who benefits from something they do not pay for
Gain Sharing Plan
A plan designed to help increase an organization's efficiency by increasing the productivity of the company's employees and/or lowering the firm's labor costs
Straight Salary Plan
A plan in which employees receive a set compensation, regardless of their level of sales
Self-Funded Health Plans
A plan in which the employer carries the liability for the health insurance plan rather than providing employee insurance through an insurance company
Social Security Act
A social insurance program funded by payroll taxes to provide retired workers with a continuous stream of income after their retirement, benefits for dependents and survivors of covered workers, and benefits for disabled workers and their dependents, as well as insurance coverage for the elderly
Workers' Compensation
A social insurance program that provides cash benefits and medical care to workers when they suffer injuries or illnesses related to their employment
Preferred Provider Organization (PPO)
A type of managed care program in which the employer negotiates with health care providers, usually in a network, for discounts and services for health care coverage for employees
Job Action
A unified activity by workers to put pressure on an employee without resorting to a strike
Union Steward
A union member that serves as a liaison between the rest of the employees and the leadership of the union
Industrial Union
A union organized around an industry
Duty of Fair Representation
A union's obligation to represent all employees in the bargaining unit it represents, whether or not the employees are members of the union
Weingarten Rights
A unionized employee's right to have a union representative present in any investigatory interview that could result in discipline
Interest Arbitration
Arbitration used to create a new or modify an existing collective bargaining agreement
After the parties come to an agreement on a labor contract, they shift from contract negotiations to:
Contract administration
What does the International Labour Organization (ILO) promote?
Dialogue between trade unions and employers in formulating, and where appropriate, implementing national policy on social, economic, and many other issues
Agency Shop
Employees cannot be required to officially join a unio but can be required to pay an agency fee, an amount equivalent to initiation fees and dues to a union to help cover the cost of the union acting as their bargaining agent
Labor-Management Reporting and Disclosure Act (LMRDA)
Grants certain rights to union members and protects their interests by promoting democratic procedures within labor organizations
When do employers have to have a workers' comp program?
In most states, employers are required to have a workers' compensation program regardless of the number of people they employ
Best Alternative to a Negotiated Agreement (BATNA)
The best outcome possible for a party, if they are unable to reach an agreement
Valence
The degree of value employees place on different rewards
Expectancy
The degree to which employees believe that, if they work toward a certain performance objectives, they will be able to achieve that objectives
Copay
The minimum amount employees must pay for health care, as determined by their health insurance plan
Decertification
The process of terminating union representation of a bargaining unit, resulting in the union no longer representing the employees or engaging in collective bargaining on their behalf
Collective Bargaining
The process that labor unions and employers use to reach agreement about wages, benefits, hours worked, and other terms and conditions of employment
Issues
The specific items to be negotiated
Salting
Union efforts to get union-paid organizers hired to work for the company so that they can organize employees from the inside
Do Union Organizers work for the unions or the company possibly unionizing?
Unions
For the purposes of the ACA, what is a full-time employee?
a full-time employee is someone who works on avg 30 or more hrs per wk
Health Savings Account (HSA)
A special account established through employers, banks, credit unions, insurance companies, and other approved financial institutions into which an employee sets aside money pre-tax to help pay for his or her health care options
Global Firm
A stage of internationalization where all operations are coordinated from the MNC's headquarters with a view that the firm operates as one big organization without differentiating products/services for local markets
Transnational Firm
A stage of internationalization where an MNC operates as one large organization with much communication happening across country locations to improve efficiency and flexibility
Multidomestic Firm
A stage of internationalization where each country location operates independently of locations in other countries
Broad-Based Stock Option Plan
A stock purchase plan that applies widely to a firm's employees
National Emergency Strike
A strike or lockout that affects an entire industry, or a substantial part of it, and national health and safety are imperiled
Arbitration
A third party acts as a judge and determines the outcome
Mediation
A third party assists the parties in a negotiation by focusing on the process without offering advice or opinions
Health Maintenance Organization (HMS)
A type of managed care health insurance program that requires employees to designate a primary care physician and have any visits to a specialist referred by the primary care physician
Expatriate
Any person living outside their native country
Illegal Subjects of Bargaining
Any topic that would be illegal under the NLRA or any other law
Rights Arbitration
Arbitration use to determine a party's rights under the collective bargaining agreement
Who began the work on Reinforcement Theory, what is the point of it?
B.F. Skinner and others; Employers get the behaviors they reward
Did the Norris-LaGuardia Act of 1932 create a power shift?
Began shifting the balance of power away from employers
Cultural Intelligence
Being cognizant of different beliefs or values held by a group of people different from one's own group
Voluntary Benefits
Benefits that an employer chooses to offer its employees without being required to do so
Do Unions favor card check and neutrality agreements or the Unionization Process?
Card checks and neutrality agreements because it eliminates the need for an election and management agrees to remain neutral in the process
Featherbedding
Causing an employer to pay for services not actually performed
Backdating
Choosing the date for a stock award based on when the stock price was low, rather than using the exact date the stock award was issued, thereby creating an immediate profit for the individual
Mandatory Subjects of Bargaining
Compensation, benefits, work schedules, and other terms and conditions of employment
5 Characteristics of Merit Pay Programs
- Employees who perform at higher levels should receive greater rewards - Performance ratings employees receive are used to allocate merit pay increases - Some companies use a merit pay grid to determine % of raises - Important not to raise an employee's salary too high too quickly - Only 1/5 of managers felt that merit pay plans worked
What do Voluntary/Discretionary Benefits primarily focus on?
- Health, wellness, and welfare - Life management - Retirement
What did the ILGWU protest for after the Triangle Shirtwaist Factory fire?
- Higher wages - Shorter hours - Extra pay for OT - Better safety conditions - Sprinkler systems in factories - Adequate fire escapes
Goals of ACA
- Improving quality and lowering health care costs - Providing greater access to health care - Providing new consumer protections
6 Concerns with Merit Pay Programs
- Increases are tied directly to employees' performance ratings (bias) - Company's labor costs can quickly escalate - Backward focused - Actual impact on paycheck may seem insignificant - Difficult for employees to differentiate merit pay increases from cost-of-living adjustments - Employees may begin to see them as entitlements
2 Advantages of Standard Hour Plans
- It encourages employees to work as quickly as possible to complete their tasks - The plan can be used to motivate employees who are dong more complex jobs
Soft skills necessary for international assignment:
- Language skills - Cultural intelligence - Personal adaptability
2 Characteristics of Lump-Sum Merit Bonuses
- Many firms in the tech and finance industries use lump-sum bonuses - The "eligible bonus" is the amount that a fully performing employee could receive if both company performance and individual performance goals were met
4 Characteristics of Piecework Incentive Plans
- More forward-looking (reward for future performance) - Very simple to calculate - Generally most effective for jobs that are narrow in scope and involve the frequent performance of certain objective tasks - Places a premium of volume
Public sector employees that are often unionized:
- Police - Firefighters - Other government workers - Teachers (Not private school teachers)
Other types of Health and Wellness Programs
- Prescription Drug Plans - Vision and Dental Care - Wellness Programs - Mental Health and Substance Abuse Benefits (EAPs, Short/Long term Disability Insurance)
NLRA initially served to increase workers' power by:
1) Guaranteeing all employees the right to join unions and bargain collectively 2) Defining Unfair Labor Practices to place restrictions on certain employer activities 3) Creating an independent National Labor Relations Board (NLRB) to oversee union elections and settle disputes
What are the 3 bodies that make the NLRB?
1. 5-member board (The Board) 2. Office of the General Counsel 3. Division of Judges
2 Characteristics of Team Incentive Plans
1. All members are rewarded equally unless goals not met - then none of the members receive the incentive 2. Make most sense with highly interdependent tasks done, and when cooperation/collaboration are required
What constitutes a National Emergency Strike?
1. An entire industry or a substantial part of it is affected 2. National health and safety are imperiled
Compensation approaches for International assignments:
1. Balance Sheet or Home Country Approach 2. Host Country Model 3. Regional Plan 4. Global Policy
Social Loafing
A situation in which the motivation of individuals to exert effort diminishes when their outputs are combined with those of others
What did the NLRA originally say about employee rights?
Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection
Neutrality Agreement
Employers agree to not interfere in the employees' decisions about whether to join the union, and the employees and the union agree not to disrupt the workplace through strikes, picketing, or boycotts
When do employers have make ACA contributions?
Employers w 50 full-time employees, or a combo of full-time and part-time employees equal to 50 full-time employees, during the previous calendar yr are required to be in compliance under the ACA's Employer Shared Responsibility Provisions of Section 4980H of the IRS Code
Applicable Large Employers (ALEs)
Employers with 50 or more full-time or full-time equivalent employees who are required to comply with the ACA Employer Shared Responsibility provisions
National Labor Relations Act (Wagner Act)
Gave employees the right to join unions and engage in collective bargaining, placed restrictions on employers, and established the National Labor Relations Board (NLRB)
Federal Service Labor Management Relations Act of 1978 (FSLMRA)
Gave most federal employees the right to organize and bargain collectively over the conditions of employment (not compensation, benefits, or hours)
Goal-Setting Theory
Goals serve as a motivator to focus the efforts of employees toward desired outcomes when the goals are specific, challenging, attainable, and when feedback on progress is provided
Transnational Project Team
Group of people from different countries and typically with different professional specialties working together to accomplish a common goal
Hofstede's Cultural Dimensions: Explanation of Uncertainty Avoidance
High Uncertainty Avoidance: Uncomfortable with the unknown Low Uncertainty Avoidance: More accepting of the unknown
Hofstede's Cultural Dimensions: EX of Power Distance
High power distance: A janitor passes an executive in the hallway without greeting the executive and avoids eye contact with the executive Low power distance: A janitor passes an executive in the hallway greeting them by their first name and making eye contact
Hofstede's Cultural Dimensions: EX of Uncertainty Avoidance
High uncertainty avoidance: Develop multiple strategic plans to act for the unknown Low uncertainty avoidance: Wait to see how the market/competition/regulation unfolds and develop a strategic plan as it happens
When do employers have to pay for UI?
If they have one or more employees in each of at least 20 calendar weeks, or have one or more employees paid $1,5000 or more in wages in any calendar quarter
Who began Expectancy Theory, what 3 factors influence how incentives influence employee motivation on the job; purpose of theory
Kurt Lewin 1930s, Edward Tolman 1950s Three factors influence how incentives influence employee motivation on the job: 1. Expectancy 2. Instrumentality 3. Valence When properly designed and implemented, incentive systems reward employees and managers for acting in the best interest of a company's owners and everyone benefits
Hofstede's Cultural Dimensions: Explanation of Long-Term vs Short-Term Orientation
Long-Term (Pragmatism) Orientation: Employees accept that changes are inevitable and respond flexibly to these changes Short-Term (Normative) Orientation: Employees respect traditions and are suspect of changes
Hofstede's Cultural Dimensions: EX of Long-Term vs Short-Term Orientation
Long-Term (Pragmatism) Orientation: Focus employee training on acquiring basic skills and abilities that can be applied in many situations Short-Term (Normative) Orientation: Focus employee training on the skills needed for employees' current jobs, not career development
4 Differences between Lump-Sum Merit Bonuses and Merit Pay Increases:
Lump-Sum Merit Bonuses are: 1. Not rolled into the employee's base salary 2. One-time payments 3. Generally cost companies less because the payouts don't increase labor costs permanently 4. Results in lower total income over time for employees
Agency Theory
Managers can motivate their employees to act in certain ways by aligning employee interests with the interests of the firm's other stakeholders
Hofstede's Cultural Dimensions: Explanation of Masculinity vs Femininity
Masculinity: Culture favors personalities that are more assertive and achievement oriented Femininity: Culture favors more caring and nurturing personalities
Hofstede's Cultural Dimensions: EX of Masculinity vs Femininity
Masculinity: Performance appraisals primarily are based upon successful completion of target goals Femininity: Performance appraisals primarily are based upon building successful teams
How long do UI benefits typically last?
Most states follow the 26-week standard
Can government employees strike in most states?
No
Does the NLRA cover federal employees?
No
Is the Federal Government involved in the administration and financing of workers' compensation programs?
No, all done at state level
Employee Assistance Program (EAP)
Resources for employees dealing with personal problems, including attorney consultation, child-care and elder-care options, budget information, addiction recovery, and family counseling
What is the core purpose and goal of Social Security?
Social insurance protects people against job-related risks: Disability, death, unemployment, and so forth. Meant to supplement an individual's retirement or disability income, not fully replace it The goal is to improve not just the lives of individual participants in social insurance plans, but society as a whole
Right-to-Work laws
State legislation that guarantees a workers cannot be compelled to join a union or pay dues
Which Act covers federal government employees when it comes to labor relations?
The Federal Service Labor Mangement Relations Act of 1978 (FSLMRA)
Which Act created the Federal Labor Relations Authority (FLRA)?
The Federal Service Labor Mangement Relations Act of 1978 (FSLMRA)
Which Act created the National Labor Relations Board (NLRB)?
The National Labor Relations Act (NLRA) of 1935
Which Act created Unemployment Insurance (UI) and who is covered?
The Social Security Act of 1935, almost all workers are covered by the program
Do employers and right-to-work groups prefer card checks and neutrality agreements or the Unionization Process?
The Unionization Process because they will still be able to campaign against the union
Culture Shock
The awareness of a person living in a foreign country that their behaviors are not appropriate in the new culture
What is Medicare, who gets it?
The health insurance portion of Social Security for retirees age 65 or older and disabled workers
Instrumentality
The perceived link between one's performance and receiving the reward or incentive payment promised; reflects whether employees believe that achieving an objective will be rewarded
Polycentric
The practice of using HR policies and practices that are differentiated to fit the country culture where they are implemented
Ethnocentric
The practice of using home country HR policies and practices in other countries regardless of their fit in those cultures and legal frameworks
Reverse Culture Shock
The process IAs experience when returning to their home countries of adapting back to their original home country behaviors
Repatriation
The process of returning IAs to their home countries
4 Characteristics of Traditional Health Care Plans
- Include those available through insurance carriers, community-based plans such as Blue Cross/Blue Shield, and employer self-insurance - Employee typically has to meet a deductible before the insurance plan pays for most medical services and even then the plans sometimes pay only 80% or less of the remaining costs - Employees can choose the doctors they want, usually don't have to live in a certain geographic location to participate in the plan - Plans generally do not pay for preventive care and may pay only part of the costs of diagnostic tests
Two types of Ownership Plans:
1. Stock Option Plans 2. Employee Stock Ownership Plans (ESOPs)
Reinforcement Theory or Operant Conditioning
Positive outcomes occur when individuals learn the relationship between actions and consequences and, as a result, modify their behavior accordingly
Generic Drugs
Prescription drugs with the same formula as brand-name drugs but with a lower price
Problem and Solution of Team Incentive Plans
Problem: Potential for free riders (being late for deadlines, not doing their assigned part). Solution: Have team members evaluate contributions of each other through a peer appraisal of a 360-degree performance evaluation performance OR Use mixed-level system that awards both individual and team effort
Union membership varies by:
Profession, industry, and geographic location
Norris-LaGuardia Act
Prohibited federal courts from enforcing yellow-dog contracts and issuing injunctions in labor disputes unless certain conditions were met
What does the Federal Mediation and Conciliation Service (FMCS) provide?
Provides both unions and employers free mediation, conciliation, and voluntary arbitration for labor-management disputes
Railway Labor Act (RLA)
Provides for the prompt disposition of labor disputes and protects the rights of employees to organize and engage in collective bargaining
Balance Sheet or Home Country Approach
Providing international assignees pay or benefits as they would in their home countries while the IAs are working in a foreign country
Are private sector or public sector more likely to be unionized today?
Public sector (34.8% unionized) Private sector (6.3% unionized)
Working to the Rules
Refusing to do additional work that is not a specific job requirement
Exclusive Provider Organization (EPO)
Requires the use of doctors, specialists, and hospitals in-network except in an emergency
Conciliation
Similar to mediation, but the conciliator may offer insight and opinions on the situation
What kind of worker has greater economic and political power because there is greater demand for them?
Skilled workers
Which Act established the Federal Mediation and Conciliation Service (FMCS)?
The LMRA
How were Gain-Sharing Plans used traditionally?
They were developed for and used primarily in manufacturing environments to motivate employees to help the company find ways to increase profits by sharing a portion of the financial gains with employees
The purpose of incentives is:
To motivate employees to work as hard as possible to reach certain goals by rewarding them when they do what is desired
What is the mission of the Federal Mediation and Conciliation Service (FMCS)?
To prevent or minimize the impact of labor-management disputes on the free flow of commerce Also provides education/training programs designed to improve the working relationships between labor and management
What was the purpose of the National Labor Relations Act (NLRA)?
To provide economic security to lower-income groups and steer the country out of the Great Depression
Permissive Subjects of Bargaining
Topics that are neither mandatory nor illegal
What type of union was typically early in US labor union history?
Trade/craft unions
What is the key to success for international assignments?
Training
How do you make training most effective for international assignments?
Training should be scaffolded to meet the psychological needs of the employees Cultural awareness training Training should continue after move Provide training for family members
True or False: The vast majority of IAs are internal hires or people who already work for the MNC
True
How many people approve of unions today?
65% of people 83% among democrats, 64% among independents, 45% among republicans
Federal Labor Relations Authority (FLRA)
Agency of the U.S. government created to administer the FSLMRA
Union Shop
All workers in a bargaining unit represented by a union must become members of that union within a certain period of time of at least pay the equivalent of union dues
When can the US President issue an 80-day injunction against a strike or lockout?
When a strike is deemed a National Emergency Strike
Impasse
When both parties have made their final offers and are not willing to make further concessions, unions are allowed to strike, employers are allowed to lock the employees out
Concerted Activity
When two or more nonunion employees act together to try to improve working conditions, or when a single employee approaches management after conferring with other employees on their behalf or is acting on behalf of other employees
Can both employees and employers file grievances?
Yes
Can the economic well-being and stability of a country affect the success of HR policies and practices?
Yes
Do employees petition the NLRB if they want decertification?
Yes
Do US labor laws follow a principle of checks and balance?
Yes, although it isn't expressed
Did the LMRA outlaw Closed Shop agreements?
Yes, but still allowed for union security clauses to address the issues of free riders
7 Keys to a successful Wellness Program
1. Be clear on the goals and objectives when designing the plan 2. Ensure that senior mgmt is committed to the initiative and will provide financial resources 3. Involve employees at all lvls and demographic groups in the design of the program 4. Define accountability for program mgmt early in the process 5. Provide adequate resources to support intended goals and ensure sustainability 6. Provide clear and frequent comm throughout the design process and afterward 7. Include an incentive program to encourage employees to use the program
What does the Duty to Bargain entail?
1. Both parties are required to meet at reasonable times and discuss the details of compensation, work schedules, and other things related to employment 2. Both parties are required to put their agreement in writing if either party requests it, which they always do 3. Neither party is required to agree to anything or compromise on any issue 4. Both parties are required to "confer in good faith"
3 Characteristics of Profit-Sharing Plans
1. Can be distributed to employees as cash or can be deferred 2. Tax advantage: Income the employee earns is deferred until they retire 3. Helps keep employees focused on activities that are truly important
Reasons for sharp decline in private-sector unionization rates
1. Decline in manufacturing and other traditional union strongholds 2. Increased employer resistance to unionization efforts (anti-union consultants to fight worker attempts to unionize)
What are the 5 main provisions of the Labor-Management Reporting and Disclosure Act (LMRDA)?
1. Defined a Bill of Rights for union members 2. Established reporting requirements for labor unions, union officers and employees, employers, labor-relations consultants, and surety companies 3. Set standards for regular elections of union officers 4. Established safeguards for protection of labor union funds and assets 5. An overview of union member rights
What are the 2 types of Negotiations?
1. Distributive Bargaining 2. Integrative Negotiations
What are 4 ways employers can reduce share of Workers' Compensation costs?
1. Educate employees about wellness and safety 2. Ensure that the workplace is free of hazards that could lead to injuries or illnesses 3. Doing a better job of tracking claims to ID where health and safety problems in their companies might be present 4. Return-to-work policies
3 Disadvantages of Profit-Sharing Plans
1. Employees may be doing exceptionally well in their jobs and helping their coworkers excel, but their company's overall performance goal may not be being realized 2. Employees might not be rewarded by their incentive plans, even though they have done everything they can to help their company succeed 3. Employees might not see the fruits of their labor for a long time
What can government employees do besides strike?
1. Engage in job action - unified activity to put pressure on an employer without resorting to a strike 2. Meetings in public places 3. Circulating/signing petitions 4. Refusing to do additional work that is not a specific job requirement (Working to the rules)
What are the democratic rights that union members have?
1. Equal rights and privileges for involvement in union elections and union biz, subject to reasonable rules in the union constitution and/or bylaws 2. Freedom of speech and assembly with regard to criticizing union officials, expressing different viewpoints, and holding meetings 3. Right to secret ballot vote on rates of dues, initiation fees, and assessments 4. Protection of right to sue the union, without reprisal 5. Protection from improper union discipline and right to due process in disciplinary situations
What are the three types of international employees?
1. Expatriate 2. Home Country National 3. Third Country National
3 Advantages of Piecework Incentive Plans
1. Focus employees' efforts directly on tasks that are valuable for company success 2. Very clearly tells employees what types of behaviors they need to exhibit 3. Simplicity of these plans and the ease of computing the anticipated compensation for different levels of productivity make them easy to communicate to employees
3 Disadvantages of Gain-Sharing Plans
1. Free riders 2. May be too complex for employees to understand 2. Rewards my be viewed as unattainable, particularly in situations in which employees already operate at very high levels of efficiency
2 Thing the Railway Labor Act (RLA) established
1. Granted workers the right to join unions and elect representatives without interference from employers 2. Established a procedure for handling bargaining disputes (major disputes)
What 5 major changes did the Labor Management Relations Act (LMRA) make to the NLRA?
1. Granting employees the right to refrain from union activity 2. Adding ULPs that could be committed by a union 3. Defining permissible types of union membership 4. Establishing the Federal Mediation and Conciliation Service (FMCS) 5. Giving the President the power to intervene in a strike that was deemed to constitute a national emergency
6 Types of Managed Health Care Plans
1. HMOs 2. PPOs 3. POSs 4. EPOs 5. CDHPs 6. HDHPs
3 Types of ABHPs
1. HSAs 2. Health Reimbursement Account 3. Self-Funded Plans
Benefit offerings take a variety of forms to address health and wellness issues. What are the 5 forms?
1. Health Insurance 2. Employee Assistance Programs 3. Health Promotion Programs 4. Health Risk Appraisals 5. Work and Family Balance Programs
3 Advantages of Gain-Sharing Plans
1. Help foster a participative environment in which employees are able to help improve productivity and are rewarded for making useful suggestions 2. All employees within the unit are encouraged to help one another succeed 3. Instrumentality: There is a clear link between the effort employees expend and the rewards they receive
What 3 things should a manager understand about union negotiations?
1. Identify the interests of both parties 2. Be prepared 3. Understand the consequences of not reaching an agreement
3 Characteristics of Standard Hour Plans
1. If employees are able to complete their tasks in less time than expected, they still receive the full rate of pay for the task performed 2. Employees need some sort of motivation to pay attention to the quality of their work, not just the speed 3. Some companies require employees to correct their work on their own time if the quality of their work is low
What are the 2 ways gains are realized in Gain Sharing Plans?
1. If the firm's collective productivity improves and the employees exceed some predetermined productivity level, they receive part of the monetary value of the increased productivity 2. If employees are able to maintain the same level of productivity but do so with fewer costs, they share the gains of their increased efficiency
What are Hofstede's Cultural Dimensions?
1. Individualism/Collectivism 2. Power Distance 3. Masculinity/Femininity 4. Long-Term Orientation (Pragmatism)/Short-Term Orientation (Normative) 5. Uncertainty Avoidance 6. Indulgence/Restraint
What are the 3 employer costs for workers' comp?
1. Insurance premiums 2. Deductibles that have to be met 3 Self-insured employer: Costs of the plan equal the admin costs related to it plus any benefits paid out to employees
5 Unfair Labor Practices defined by the NLRA
1. Interfering with, restraining, or coercing employees in the exercise of their rights guaranteed in Section 7 of the Act 2. Dominating or interfering with the formation or administration of any Labor organization, or contributing financial or other support to it 3. Discriminating against employees in terms of their hiring, tenure of employment, or any other term or condition of their employment, so as to encourage or discourage them from becoming members in a labor organization 4. Discharging or otherwise discriminating against employees because they file charges or give testimony under the Act 5. Refusing to bargain collectively with the duly chosen representatives of employees
What are the 3 levels of unionization?
1. Local 2. International 3. Federation
What are the 3 Federal Government Workers' Compensation Insurance programs?
1. Longshore and Harbor Workers' Compensation Act: All longshore/harbor workers in the US 2. Black Lung Benefits Act of 1972: Coal miners who have black lung disease 3. Energy Employees Occupational Illness Compensation Act of 2000: Covers any fed workers/contractors exposed to beryllium and any companies that provided beryllium to the DOE
6 Characteristics of Awards
1. Managers give out spot awards on the spot 2. Gives managers flexibility because they can be linked to a variety of employee actions at any time 3. Spot awards don't depend on performance over the course of the review period 4. Can be tied directly to specific performance dimensions of employees' jobs and are paid only when desired performance levels are met 5. 80% of private companies said they use short-term incentives to reward high-performing employees 6. Physical items can also be a longer-term reminder of the award, especially if the item is engraved or has the company logo
What are the 3 categories of Bargaining Topics?
1. Mandatory 2. Illegal 3. Permissive
6 Potential Problems with Piecework Incentive Plans
1. Many jobs require employees to perform a wide array of tasks that are different to measure 2. Employees may focus their efforts on the parts of the job that are rewarded by the plan and ignore other important aspects of their jobs 3. Without adequate controls, a firm might experience a high volume of products of diminished quality being produced 4. Determining the firm's productivity standards that trigger the higher levels of incentive pay may be challenging 5. If the amount of work an employee can produce depends on the work of other employees or on the amount and/or types of equipment a firm has, the person's output is less likely to be under their direct control 6. When designing a piecework system, the company must ensure that the LSA rules for paying min/OT wages is taken into account
5 Requirements for collecting UI benefits:
1. Meet state eligibility requirements 2. File a claim at the appropriate state unemployment insurance agency, or phone if permitted in your state 3. Make sure to provide accurate, current information 4. Follow the guidelines for continued eligibility for benefits including reporting income and job offers on a regular basis 5. Register w the state's employment service for reemployment assistance and/or training program info
6 types of Individual Incentive Plans:
1. Merit Pay Programs 2. Lump-Sum Merit Bonuses 3. Piecework Incentive Plans 4. Standard Hour Plan 5. Awards 6. Sales Incentive Plans
What is the procedure for handling bargaining disputes?
1. National Mediation Board attempts to facilitate a negotiation to resolve diff 2. National Mediation Board tries to get parties to agree to arbitration 3. Agree to arbitration: Decision is binding 4. Do not agree to arbitration: National Mediation Board can request the US President to create an emergency board of investigation 5. Mandatory 30-day cooling off period before union can strike or employer can lockout employees
What are the two primary responsibilities of the NLRB?
1. Oversee secret ballot elections to determine the unionization status of employees 2. To deal with ULP complaints
What are the primary US Labor Laws?
1. Railway Labor Act of 1926 (RLA) 2. Norris-LaGuardia Act of 1932 (NLRA) 3. National Labor Relations Act of 1935 (NLRA) 4. Labor Management Relations Act of 1947 (LMRA) 5. Labor Management Reporting and Disclosure Act of 1959 (LMRDA)
What is an example of the grievance process?
1. Report problem to supervisor 2. Union represents employee to next level of supervision 3. Union represents employee to next level of supervisor per union contract 4. Arbitrator used to resolve grievance *At any point the grievance can be resolved and the process concluded
Under the LMRA, what are the ULPs that could be committed by a union?
1. Restraining or coercing employees in the exercise of their Section 7 rights 2. Causing or attempting to cause an employer to discriminate against an employee based on union membership 3. Refusing to bargain collectively with an employer 4. Engaging in or inducing others to engage in a secondary boycott of a neutral employer not directly engaged in a labor dispute 5. Requiring union members to pay excessive dues or membership fees 6. Causing or attempting to cause an employer to pay for services not actually performed, known as featherbedding 7. Picketing an employer to force them to recognize a union that has not been certified as the representative of the employees, referred to as recognitional picketing
2 Common Gain-Sharing Plans
1. Scanlon Plans - Can help reduce firm's labor costs without corresponding decreases in productivity - Incentive based on improving the relative level/ratio of the firm's labor costs to the sales value of the products it produces 2. Improshare Plans - Plan is based on time savings per unit of production rather than just cost savings - Companies must first establish the expected hours per unit of productivity for a group of employees
What are the 5 Mandatory benefits in the US?
1. Social Security 2. Workers' Compensation 3. Unemployment Compensation 4. Family and Medical Leave 5. After 2015: Employer Shared Responsibility provision of the Patient Protection and Affordable Care Act (ACA)
What are the 3 primary types of Sales-Incentive Plans?
1. Straight Commission Plan 2. Straight Salary Plans 3. Mixed Salary/Commission Plans
What are the 4 types of Group/Organizational Incentive Plans?
1. Team Incentive Plans 2. Gain Sharing Plans 3. Profit Sharing Plans 4. Ownership Plans
Distinctions between incentive plans:
1. The level of focus 2. Whether incentives are used as an add-on to employees' base pays, or if they are used in place of some, or all, of an employee's base pay
What are the 3 types of health care plans?
1. Traditional Health Care Plans 2. Managed Health Care Plans 3. ABHPs
What are the 2 permissible types of union security clauses?
1. Union Shop 2. Agency Shop (3. individual states can pass so-called Right-To-Work laws)
What are 4 types of Noncash Incentives companies can use as Awards?
1. Vacations 2. Merchandise 3. Gift Certificates 4. Additional PTO
What are the steps in the Unionization Process?
1. Workers decide they want to be represented by a specific union 2. 30% of eligible workers in the bargaining unit sign cards petitioning the NLRB for secret-ballot elections 3. A representation certification petition is filed with the NLRB 4. The regional office of the NLRB holds a secret-ballot election 5. The NLRB tallies the vote to determine if a majority of the workers voted for the union 6. The union is certified if the vote is positive 7. The employer is required to bargain with the union *Employer can also voluntarily recognize the union based on evidence it has that the employees want union representation
How many people died in the Triangle Shirtwaist Factory fire?
145 of the 500 women employed
How many states currently have Right-to-Work laws?
27
What is the US's current unionization rate?
9.9%
International Labor Organization (ILO)
A UN agency that promotes social justice and internationally recognized human and labor rights worldwide
Corporate Campaign
A carefully designed and executed operation by a union that seeks to overwhelm an employer from all angles in order to gain recognition
Multinational Company
A company that operates in more than one country
Bargaining Unit
A group of two or more employees designated by the NLRB as having a "community of interest" for purposes of union representation and bargaining
Scanlon Plan
A group-based incentive plan based on employee suggestions for increased efficiencies and productivity
Improshare Plan
A group-based incentive plan based on the number of hours a firm expects to take to reach a certain level of output
Employee Stock Ownership Plan (ESOP)
A group-based incentive plan in which a company contributes shares of its stock to a trust set up for its employees
Straight Commission Plans
A plan that pays employees a percentage of the total sales they generate
High-Deductible Health Plan (HDHP)
A plan that requires the employee to pay first few thousand dollars of medical costs each year, with the plan paying only when employee has a major medical problem; results in monthly premium cost savings for employee and employer, also called catastrophic health plans
Return-to-Work Programs
A policy that allows workers to return to work with light-duty position while recovering from a work-related injury, thus returning workers to work safely and faster
Card Check
A process whereby a company recognizes a union once the union has produced evidence that the majority of workers have signed authorization cards indicating that they want eh union to represent them
Employer Shared Responsibility Provisions
A requirement under the Affordable Care Act (ACA) for employers with 50 full-time employees or the equivalent to offer affordable health coverage to their full-time employees and their dependents, or be subject to an Employer Shared Responsibility payment under certain conditions
Culture
A set of beliefs or values held by a group of people which drive their behaviors and preferences
Spot Award
A short-term incentive that companies use to encourage their employees to work toward specific outcomes
Integrative Negotiations
Also known as interest-based bargaining, a less adversarial, win-win, nonzero sum approach that recognizes the parties are mutually interdependent
Consumer-Driven Health Plan (CDHP)
Alternative health care plan that lets employees choose a higher deductible or other more expensive alternatives, put money into a savings plan, and choose their health care providers
Labor Management Relations Act (Taft-Hartley Act)
Amended the NLRA to give employees the right to refrain from union activity, added ULPs that could be committed by a union, defined permissible types of union membership, established the FMCS, and gave the President the power to intervene in a strike that was deemed ton constitute a national emergency
Third Country National
An MNC employee who works in a country different than their home country but isn't an employee from the country of the MNC's incorporation
Health Reimbursement Account (HRA)
An account into which employers put money to reimburse employees for qualified medical expenses
Unfair Labor Practice (ULP)
An action that violates the NLRA by denying employee rights provided by the act
Distributive Bargaining
An adversarial, fixed pie, win-lose, zero sum approach that assumes the resources are fixed and that one party's gain is the other party's loss
Host Country Model
An approach to designing HR policies and practices for IAs where IAs will be covered by the policies and practices in the countries where they work regardless of their home countries
Global Policy
An approach to designing HR policies and practices for IAs which creates a single policy for all MNC employees working outside their home countries
Regional Plan
An approach to designing HR policies and practices for IAs which creates plans specific to each regional territory of an MNC
Local Union
An association of employees who have banded together because of their shared economics and workplace interests and been recognized by the NLRB as the exclusive bargaining agent for that group of employees
Federation
An association of international unions that provides services to affiliated unions
Licensing/Franchising Stage
An early stage of internationalization that has separate companies in nonhome countries paying for the rights to sell company products and services and using the company's name
International Assignee
An employee of an MNC who works in a country different than their home country
Wellness Program
An employer provided program designed to keep employees healthy; can include programs such as smoking cessation, weight loss management programs, and memberships in fitness centers
Mixed-Level Plan
An incentive plan in which employees are exposed to multiple incentive plans
National Labor Relations Board (NLRB)
An independent agency of the U.S. government created to administer NLRA
Straight Piecework Plan
An individual incentive plan in which employees receive a certain rate of pay for each unit they produce
Standard Hour Plan
An individual incentive plan in which the employee's pay is based on how much time an employee is expected to need to complete some task
Differential Piecework Plan
An individual incentive plan in which the pay employees receive per unit produced or delivered changes at certain levels of output
Free Rider
An individual who does not work as hard as the other on a team
Import/Export Stage
An initial stage of internationalization where companies purchase or sell products and/or services in other countries but do not have physical operations in those countries
International Union
An organization of local unions that provides services that would be more costly or difficult for the locals to provide
What are union organizers NOT allowed to do?
Campaign for the establishment of a union on company property unless the workplace is remote, such as a logging camp
Has union membership been rising or declining over the recent years?
Declining
What is the most contentious part of the unionization process?
Determining who should be included in the Bargaining Unit
Stages of Globalization
Different organizational models that a corporation may experience when developing international operations
Union Authorization Card (Signature Card)
Document indicating that an employee is interested in being represented by a union
What is a firm's Benefits and Safety Philosophy, and what are the considerations when creating one?
Drives the decisions the firm makes as to what it offers beyond what is mandatory - Understand the needs and preferences of its workforce - All employees have some basic needs, but their needs differ - Companies have to decide how much they are willing to invest in benefits and safety programs for their employees beyond what the law requires
Who began Goal-Setting Theory (and when), what are the characteristics of the goals, and what is critically important to this theory?
Edwin Locke proposed in 1960s, Gary Latham helped refine Goals need to be: Specific Challenging Attainable Meaningful Receiving feedback about progress toward goal attainment is critically important
What are employees currently allowed to do and not to do in relation to Social Media?
Employees are allowed to: - Use social media as part of their protected concerted activity - Address work-related issues and share information about compensation, benefits, and working conditions Employees are not allowed to: - Individually air their complaints - Make deliberately false statements - Disparage their employer's products or services without relating those statements to a labor controversy
Expectancy Theory
Employees make decisions regarding how to act at work based on which behaviors they believe will lead to their most valued work-related rewards and outcomes
Mixed Salary/Commission Plan or Base Plus Commission Plan
Employees receive a lower base salary, perhaps only 50% or 70% of what would be offered under a straight salary plan, with the remaining percentage being commission based
