MHR 305 set 2

Closed shop

must be member before being hired. Illegal for those covered by the NLRA.

Agency shop-

must pay union dues but not union membership.

Mediation

neutral third party which helps to resolve problems but wont make decisions.

Other optional benefits

no official work hours, focus on family, on site health services, total wellness, midday surfing, game time.

Knowledge is shared-

one challenge is to shift the focus of training aways from teaching skilld and toward a broader focus on generating and sharing knowledge.

Unions-

organizations formed for the purpose of representing their members interests in dealing with employers.

Impact of unions on company performance

- concerns about negative effects of unions on productivity, profits, and stock. They reduce productivity because of work rules and limits on workloads set by the union contracts and production loss to so many union strikes and work slowdowns. The can reduce turnover by giving employees a route for resolving problems. The introduction of a union also may force an employer to improve management practices and pay greater attention to employee ideas.

Union Shop-

- must join union in 30 days after starting employment.

Conditions that contribute to high performance-

- teamwork, empowerment, recruitment, selection, training, knowledge sharing, compensation, flexibility, job design, job satisfaction, and ethics.

5 elements of a high performance work system

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5 key features of learning organizations

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National labor relations act

1935 labor law giving the right ti organize and collective bargaining with management, engage in strikes, prohibit employers from unfair labor practices.

Ethics

Organizational systems can promote ethical behavior including, a written code of ethics, performance measures that include ethical standards, swift discipline for misdeeds, channels for employees to seek help, training in ethical decision making.

Strikes

a collective decision by union members not to work until certain demands or conditions are met.

Balanced scorecard

a combination of performance measures birected toward the company's long and short term goals and used as the basis for awarding incentive pay. The 4 categories are: financial, customer, internal, and lerning and growth.

Learning culture

a culture in which learning is rewarded, promoted, and supported

Unemployment insurance

a federally mandated program administered by the states. Focuses on minimizing the hardships of unemployment: payments to unemployed workers. Finding new jobs, employer incentives to stabilize employment, preserve worker skills investment. Most funding comes from federal and state taxes on employers. This tax depends on the companies ecperience rating- which is based on how many people they have laid off in the past.

Piecework rates

a wage based on the amount workers produce. Straight piecework plan-same rate/piece no mater how much is produced. Differential piece rates, the amount depends on the amount produced.

Societal goals with unions

activities of unions and management take place within the context of society. Society'e values drive laws and regulations that affect labor unions. Societys goals for unions is to ensure that workers have a voice in how they are treated by their employeers.

Performance bonuses

also reward individuals performance, not rolled into base par as compared to merit pay. May linked to objective performance measures.

Arbitration

an arbitrator or board determines a binding settlement

Employee stock option ownership plan

an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust. This is the most common form of employee ownership.

Learning organizations

an organization that supports lifelong learning by enabling all employees to acquire and share knowledge. Employees have resources for training, and they are encouraged to share their knowledge with colleagues. Managers take anactive role in identifying training needs and encouraging the sharing of ideas.

Reinforcement theory

behavior is based on the consequences received by behaving in a similar way at an earlier point in time. Is we acted in a certain way previously and received a reward, we will likely repeate that behavior. If we recie ve a punishment we will probably not repeated the behavior.

role of employee benefits

benefits contribute to attracting retaining and motivating. The variety of possible benefits helps employers tailor their compensation to the kinds of employees they need. Employees have come to expect that benefits will help them maintain economic security. benefits impose significant costs.

short term incentive pay

bonuses based on ROI, year's profits, or other measures related to the organization's goals. Actual payment of bonus may ne delayed to gain tax advantages.

Group bonuses and team awards

bonuses tend to reward smaller work groups that gainsharing does. Bonouses reward the members of a group for attaining a specific goal, measured in terms of physical output. Team awards are similar to bonuses but the usually use a broad rage of performance measures.

Check off provision

contract provisions under which the employer on behalf of the union, automatically deducts union dues from employees paychecks.

Selecting employee benefits

decisions about which benefits to offer should take into account: the organization's goals and objectives, the expectations of the organization's current employees nd those it wishes to recruit in the future. The organization's budget. An organization that doesnot offer expected benefits will have difficulty attracting and keeping employees.

Communication

demonstrated tht the pay plan is fair. When employees inderstan the incentive pay plan's requirements, the plan is more likely to influence their behavior as desired.

Task design

determines how details of the organization's necessary activities will be grouped, whether into jobs or team responsibility.

Distributive bargaining-

divides economic "pie" between two sides.

Continuous learning

each employee and each group's ongoing efforts to gather information and apply the information to their decisions.

Labor management cooperation

employee involvement in decision making, self managing employee tems, labor management problem solving teams, broadly defined jobs, sharing of financial gains and business information with employees.

Participation in decisions

employee participation in pay related decisions can be part of a general move toward employee empowerment. Employee participation can contribute to the incentive plan's success.

Steps to setting up a union

employees and union contact each other- authorization card campaign begins- if <30% sighn then effort fails if <50% sign the compaign continues with secret ballots. If>50% sign then union requests recognitionif company denys then they petition for election, NKRB hold election if <50% vote yes organizing is barred for one year. If >50% vote yes bargaining begins.

Expectancy theory

employees are motivated when they believe they can accomplish a task and the rewards for doing so are worth the effort.

Maintenance of membership

employees who join the union remain members for a certain period of time.

Occupational intimacy

employees who love their work, they care about co-workers and find their worki meaningful.

Information systems

enables sharing information widely.

Reward system

encourages people to strive for objectives that support organization's overall goals.

Attitudinal bargaining

establishes trust relationships

Family friendly benefits-

family leave- time off for employees to care for children, child care-,ay take forms, requiring different levels of organizational involvement. 1. Information about cost/quality of available child care. 2. Vouchers or dicounts to use by employees. 3. Child care at or near work site. College savings and elder care.

Labor relations

field that emphasizes skills managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements.

Social security

flat payroll tax on employees and employers. Age for full retirement 65, 67 if born after 1960s.

Pay for group performance

gainsharing, group bonuses, team awards.

Management goals

goals are to increase organization's profit, they prefer low costs, raise output and keep orgaizations operations flexible. With unions goals are to limit increases in wages and benefits and retain as much control as they can over work rules and schedules.

Gainsharing-

group incentive program that measure improvements in productivity and effectiveness and distributes a portion of each gain to employees. It addresses challenge of identifying appropriate performance measures for complex jobs. Frees employees to determine how to improve their own and their group's performance. Broadens focus. THEY ARE SHARING IN THE GAINS OF THE COMPANY!

Group insurance

group rated insurance, must be provided for 36 months after termination, reducation in hours and death.can offer life incurance, and disability insurance. And long term care insurance.

To receive unemployment insurance workers must

had been employed, available for work, actively seeking work, not discharges for cause, did not quit voluntarily, and not out of work because of labor dispute.

Outcomes of a high performance work system

higher productivity and efficiency, high product quality, great customer satisfaction, low employee turnover. Individuals and groups work efficiently, provide high quality goods and services and contribute to meeting the organization's goals. When the organization adds or changes goals people are flexile and make changes to as needed to meet the new goals.

Profit sharing

incentive par in which payments are a perventage of the organization's profit and do not become a part of the employees' base salary. Profit sharing may encourage employees to think like owners. Evidence is not clear whether profit sharing helps orgs perform better.

Sales commissions

incentive pay calculated as a percentage of sales. Straight commission plan, common among insurance and rea estate agents ans car sales people.

Long term incentives

include stock options and stock purchase plans. Rationale is that executives will want to do what is best for the organization because that will cause the value of their stock to grow.

Critical systematic thinking

is widespread and occurs when employees are encourages to see relationships among ideas and thin in new ways.

Standard hour plans

it pays workers extra for work done in less than a present standard time. If the comple it in less time they still reciecve a rate for what time it normally takes.

Integrative bargaining

looks for win-win solutions.

Paid leave

major categories are vacations, holidays and sick leave. Typically 2 weeks or less is given to an employee in the first few years. Flexibility with personal days, floating holidays, and paid time off.

Craft unions-

members all have a particular skill or occupation.

Industrial unions

members are linked by their work kin a particular industry.

Communicating benefits to employees-

organizations must communicate benefits to employees so that they will appreciate the value. This is essential so that benefits can achieve their objective of attracting, motivating, and retaining employees. Employees are interested in their benefits and they need a great deal of detailed information to take advantage of benefits.

Role

overload, underload, conflict, ambiguity, and autonomy

Optional benefit programs

paid leave, group insurance, retirement plans, family friendly benefits, other benefits.

Process that make incentives work

participation in decisions and communication.

Merit pay-

pay is linked to performance appairsal rating. A merit increase grid combines an employees performance rating with employees position in a pay range to determine sixe and frequency of his or her pay increases. Some organization provide guidelines regarding percentage of employees who should fall into each performance category. Criticisms- its expensive, focusing on individual performance discourage teamwork.

Turn over rate-

people who left/ average head count

Pay for individual performance

piecework, standard hour plans, merit pay, performance bonuses, sales commissions.

Pay for organization performance

profit sharing, stock ownership

Effective incentive pay plans

proformance measures are linked to the organization'sgoals. Employeed believe they can meet performance standards. The organization gives employees the resources they need to meet their goals. Employees value the rewards given. Employees believe the rewards system is fair. The pay plan takes into account that employees may ignore any goals that are not rewarded.

Family medical leave act

requires organizations with 50 or more employees to provide up to 12 weeks of unpaid leave. After child birth or adoption. To care for a seriously ill family member (military) for an employee's own serious illness. Must be working there for over a year. Anf work more then 25 hours a week. Must get same job when returns. Most do not take the fully allotted time.

High performance work system

right combination of people, technonolgy, and organizational structure that makes full use of the organization;s resources and opportunities in achieving its goals.

Stock options

rights to buy a certain number of shares of stock at a specified price. Was traditionally only granted to executives but not any more.

Fact finder

similar to mediation, possibly recommends a settlement to the parties.

Benefits required by law

social security, unemployment insurance, workers compensation insurance, family and medical leave, health care.

Workers compensation

state program that provides benefits to workers who suffer work related injuries, illnesses and death or to their survivors. They operate under a principle of no fault liability, an employee does not need to show that the employer was grossly negligent in orger to receive compensation. The employer is protected from lawsuits. 4 major covered categoreies- disability income, medical care, beath benefits rehabilitative services. Cost to employer- nature of occupation, stat where work is located, employer's ecperience rating.

Goals of labor unions

survival and security of a union depends on its ability to ensure a requular flow of new members and member dues to support the ervices it provides. Unions place high priority on negotiating two types of contract provisions that are critical to a union's security and viability.

Employees are values

the organization recognizes that employees are the source of its knowledge. It therefore focuses on ensuring the development and well-being of each employee.

Health care benefits-

the patient protection and affordable care act- insurance companies covwerage for everone even with pre-existing conditions. 26 yrs eligibility, no life time limits. Connot end coverage when sick.

Retirement plans-

they may be contributory (employer and employee contributes) or noncontributory plans (employer contributes) define benefit plans-guarentees a specific level of retirement income based on years of service, age, and earning. Defined contribution plans- the employeer sets up an individual account for each employee and specifies the size of the investment into that account. They payment will depend on the account's performance.(money purchase plan, profit sharing and employee stock ownership plans, section 401(k)) cash balance plans- the employer sets up an indivivual account for each employee and contributes a percentage of the employee's salary, the account earns interest at a predefines rate.

Organizational structure

way organization groups its people into useful divisions, departments and reporting relationships.

People

well suited and well prepared for their jobs.

Instrumentality

what you are doing is directly related to your reward ex, piecework rate plan