Compensation Final

The ___________ model for business and compensation may be the business model of the 21st century.

A) globalizer

Unions are usually __________ with gain-sharing plans.

A) more agreeable to group incentives

Portability

Ability to applied earned pension benefits ti subsequent plans

False

According to the text, benefits were approximately 55 percent of payroll costs for companies in 2010

ACA

Affordable Care Act

Gain-sharing plans

Align workers and management in efforts to streamline operations and cut costs

Employee feelings/preferences

All of the following except.... is a criterion for evaluating appraisal formats.

Recency Error

Allowing performance, either good or bad, at the end of the review period to play too large a tole in determining an employee;s rating for an entire period.

Profit sharing plans

Allows union members to share wealth with more profitable firms

Halo Error

An appraiser giving favorable ratings to all job duties based on impressive performance in just one job function.

Living Wage

At local levels it provides a minimum wage tailored to living costs in an area.

Central Tendency error

Avoiding extremes in ratings across employees

Research indicates that the presence of a union adds about _________ to employee benefits.

B) 20% to 30%

To have the same spending power for an expatriate in a foreign country as compared to the home country is known as the ____________

B) balance sheet approach

The term for when employers seek to avoid unionization by offering workers the wages, benefits, and working conditions won in rival unionized firms is know as the ____________.

B.spillover effect

Which of the following types of ratings uses descriptions of behaviors as scale anchor points?

BARS

Exporter: Headquarters knows best

Basic total pay system designed at headquarters and is "exported" world-wide for implementation at all locations

.....provides current and former employees, their spouses, and dependents a temporary extension of group health insurance due to layoff or other qualifying events

COBRA

Work Related Differences (Earning Gaps)

Career/Life Trade offs Turnover Performance Hours of Work

First impression error

Developing a neg. or pos. opinion of an employee early in the review period and allowing that to neg. or pos. influence all later perceptions of performance.

Disparate Treatment

Disparate or unequal treatment applies different standards to different employees

Horn Error

Downgrading an Employee across all performance dimensions exclusively because of poor performance on one dimension.

.. provides for pension vesting and portability

ERISA

Qualification Differences (Earning Gaps)

Education Experience

Eligibility (ERISA)

Employees at-least 21 years old

Lilly Ledbetter Fair Pay Act

Employers can be liable for current pay differences that are a result of discrimination (as defined under existing laws such as title VII of the civil rights act) that occurred many years earlier.

Sarbanes- Oxley Act

Executives cannot retain bonuses or profits from selling company stock if they mislead the public about the financial health of the company.

Skill

Experience, training, education, and ability as measured by the performance requirements of a particular job

Walsh Health Public Contracts Act

Extends prevailing wage concept to manufacturers or suppliers of goods for government contracts.

1. Executive Pay Does not include an amount of Base Pay

False

A large majority of union contracts permit some form of alternate reward system.

False

According to a 2013 study, most executives get corporate housing as the most common perk available.

False

Employee needs and preferences for benefits can easily be determined through demographics

False

Unions have generally supported two tier wage systems because of the added flexibility to worker pay.

False

eligibility for social security is either on a total- permanent basis or partial permanent basis

False

The first issue in setting up a benefits package is how benefits should be financed

False ; first question is who should be covered

FMLA

Family Medical Leave Act

Employee Stock Ownership Plans

Give employees part ownership in company

Lump -Sum awards

Given in lieu of merit increases or pay increases

Clone error

Giving better rating to individuals who are like the rater in behavior/personality

The most restrictive type of health plan is

HMO

Horn error is to... error as first impression error is to recency error.

Halo

Globalizer: Think and Act Globally and Locally

Headquarters and operating units are heavily networked to shared ideas and knowledge; seek common system ; business model for st century

Unemployment Insurance

Help you through rough Times

Workers Comp

Hurt on the Job

Worker Economic Opportunity Act

Income from most stock plans need not be included in calculating overtime pay.

Civil Rights Act of 1991

Increases border of proof on employers to rebut some discrimination claims. Stronger remedies available in cases of international discrimination.

Local Country nationals

Individuals who are citizens of country in which subsidiary is located

Third country nationals

Individuals whose citizenship is neither employer's base country nor location of subsidiary

Expatriates

Individuals whose citizenship is that of employer's base country

Minimum Wage

Legislation is intended to provide an income floor for workers in society;s least productive jobs

Vesting

Length of time employee must work for employer before entitled to employer payments to plan

True

One way to practice good cost containment is through a copay requirement for some benefits

Access Discrimination

Opportunity

Valuation Discrimination

Pay Levels

Pay-for-knowledge Plans

Pay employees more for learning a variety of different jobs or skills

.... Benefits are not mandated by state or federal legislation.

Pensions

Union Differences (Earning Gaps)

Power Interests

Disparate Impact

Practices that have a differential outcome effect on members of protected groups are illegal, unless the differences are work-related.

Pregnancy Discrimination Act

Pregnancy must be covered to same extent that other medical conditions are covered.

Executive Order 11246

Prohibits Discrimination by federal Contractors and subcontractors in all employee practices on basis of race, sex, color, religion, or national origin

Title VII of the Civil Rights Act

Prohibits discrimination on the basis of sex, race, color, religion, or national origin in any employment condition (Disparate treatment/impact)

Age Discrimination in Employment Act (ADEA)

Protects Employees age 40 and over against age discrimination

The appraisal format that is poorest for employee development is...

Ranking

Severity Error

Rating individuals consistently lower than deserved

Securities Exchange Act

Requires Comp. that have more than 10 mil. in assets and whose securities are publicly traded and held by more than 500 owners to periodically report info, which is avail. o the public. This includes disclosure of compensation received by the CEO, CFO. and three other highest paid executives.

Americans with disabilities act

Requires that essential elements of a job be called out.If a person with a disability can perform these essential elements, reasonable accommodations must be provided.

Work Occupation Differences (Earning Gap)

Responsibilities Effort Required Skill/Knowledge Required Working Conditions

Social Security

Retirement Supplement to Pay

Most medium and large companies offer life insurance to their employees.

True

Equal Pay Act (Def)

men and women doing substantially similar work in terms of skill, effort, responsibility, and working conditions must have equal pay

Mental Health Act

mental Illnesses must be covered to same extent that other medical conditions are covered

Contingent workers

play an important safety valve role for comp. when demand is high, more are hired. When demand drops they are the first workers downsized.

Davis Bacon

requires that mechanics and laborers on public construction projects be paid prevailing wage in the area

Elements of expatriate compensation

salary taxes housing allowances & premiums

Factors Affecting Wage Comparisons

standard of living costs purchasing power working time required

The growth area for executive compensation is the granting of long term incentives such as stock options.

True

Unclear job expectations are one of the most significant barriers to good performance

True

Unions typically have a major impact of the structure of wages

True

legal issues in performance appraisal relate to EEO situations

True

Financial Accounting Standards Board

Value of all employee stock options must be expenses at estimates of fair value on financial statements.

D prevailing wage

Walsh-Healey and Davis Bacon Acts establish pay standards based on the

Which is not a consideration in designing a merit pay system

What should be done to make sure everyone gets the same merit for equity purposes

C deferred taxes

Which of the following is not a common allowance in Expatriate Pay Packages?

Which of the following covers injuries and diseases arising out of and while in the course of employment

Workers compensation

Legally Required Benefits (5)

Works Comp. Social Security Unemployment Insurance FMLA ACA - Affordable Care Act

Securities and exchange commission (SEC) Rule change on executive compensation disclosure

adopts enhanced executive compensation disclosure requirements. For, example the compensation discussion and analysis in the proxy statement must address the objectives and implementation of executive compensation programs.

A.... is a fund created by the employer, employee or jointly that is used to the first specified....

answer is C

contributory

costs shard between employer and employee

employee financed

employee pays total costs for some benefits (by law org. have to pay for some benefits)

noncontributory

employer pays total costs

Most of today's' benefits were begun due to initiatives by

employers

Effort (mental or Physical)

the degree of effort actually expended in the performance of a job

Prevailing Wage Laws

the minimum wage that must be paid for work done on covered government projects or purchases; sets pay for work done to produce goods and services contracted by the federal government

benefits

the part of the total compensation package, other than pay for time worked, provided to employees in whole or in part by employer payments.

As of 2015 the percentage of payroll that accounts for benefits costs is about .. percent

30

True

360 degree feedback is used primarily with managers and other high-level employees

Which of the following category of employees is generally most advantageous for a multinational corporation to utilize for a foreign location position?

D) a local or host-country national

Which of the following is not a consideration in designing an international compensation system?

D) firm profitability

When the employer agrees to pay a specific level of retirement pension it is known as a ... plan

Defined benefit plan

Labor Market Differences (Earning Gap)

Demand/Supply for Specific Skills

Special Groups

1. Tend to be strategically important to the comp. 2. Their positions tend to have built in conflict

FMLA

12 weeks= Unpaid

Localizer: Thing Global, Act Local

Design Pay systems to be consistent with local conditions (operate independently of corporate headquarters)

Leniency Error

Consistently rating someone higher than deserved

Fewer; less

Contingent workers receive... benefits than regular workers; contingent workers benefits cost employers... than regular workers.

Spillover Error

Continuing to downgrade an employee for performance errors in prior rating periods

All of the following except... may influence performance ratings.

Seniority of the rater

Fair Labor Standards Act

Sets Minimum wage, Hours worked, Overtime Pay, & prohibits Child Labor

Firm Industry Differences (earning gaps)

Size Technology Pay STrategy

Medical. Insurance

Surveys show that the most highly valued benefit is

Individual Retirement Accounts

Tax favored Retirement savings plan that individuals can establish themselves

B skill

The Department of Labor's definition of education, training and experience most closely fits

True

The Equal Pay Act of 1963 does allow for pay differences based on factors other than sex.

False

The Fair Labor Standards Act of 1938 outlines major provisions of hazardous work conditions.

False

The United States government has little effect on the supply or demand for labor in our economy.

Responsibility

The degree of accountability required in the performance of a job

Ppo

The general health care plan that uses a direct contractual relationship between employers, health-care providers and third -party players is

True

The original growth in employee benefits can be traced to the federal governments use of wage and price controls of the 1940's and 1950's

False

The outcomes of discrimination are defined by disparate treatment.

Working Conditions

The physical surroundings and hazards of a job, including dimensions such as inside versus outside work, heat, cold, and poor ventilation

A Big Mac index points to the fact that there is not a universal market basket of goods.

True

A study found 70 percent of employees would pay more for benefits if they had more choice in designing their own benefit package

True

Benefits design strategies can be used to attract certain types of employees

True

Contingent workers are usually considered candidates for special compensation

True

Dual-career ladders allow scientists and engineers to deal with the salary plateau effect.

True

For many benefits, employers prefer providing them on a contributory basis.

True