HR final

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Types of sales compensation plans

Salary Only, Straight Commission, Salary Plus Commission or bonuses

Equal employment opportunity (EEO) considerations

EEO laws and regulations EEOC guidelines Employer must reduce underrepresentation of protected-class members Interviews, ads, and company materials should show diversity

advantages of ESOP

Favorable tax treatment for ESOP earnings Employees motivated by their ownership stake in the firm

Outplacement services

Give displaced employees support and assistance

Employee stock ownership plan (ESOP):

Gives employees significant stock ownership in their organizations

Stock option plan:

Gives employees the right to purchase a fixed number of shares of company stock at a specified price for a limited period of time

Global teams

Global operations have increased these type of teams? -Members may seldom or never meet -Managers and HR should address task and responsibility issues

Benefits Design

Goal is providing value for employees while remaining cost-effective -Flexible Benefits -Part-Time Employee Benefits and Status -Domestic Partner Benefits -Older Workers Benefit Needs

Market line:

Graph line that shows the relationship between: -Job value as determined by job evaluation points -Job value as determined pay survey rates

job

Grouping of tasks, duties, and responsibilities that constitutes the total work assignment for an employee

Pay grades:

Groupings of individual jobs that have approximately the same value to the organization

Person with a disability: Individual who: (1 of these 3)

Has a physical or mental challenge that greatly reduces the ability to perform important life functions Possesses a record of such a challenge Is thought to have such a challenge

Churn

Hiring new workers while laying off others -Employers sometimes complain about not being able to find skilled workers with the right skills while they are laying off other employees

Integrated talent management (ITM):

Holistic approach to leveraging and building human capital

Religious Discrimination

Hostile remarks or refusal to hire individuals with different beliefs

Compensable factor:

Job dimension commonly present throughout a group of jobs within an organization that can be rated for each job

Task Identity

Job includes a whole identifiable unit of work that is carried out from start to finish

Ranking:

Listing of employees from highest to lowest in performance levels and relative contributions

Training can

Lower employee turnover Improve effectiveness and productivity Reduce costs Improve quality and customer service Increase human capital

Methods of e-learning

MOOCs Simulations Games

Immediate confirmation:

People learn best if they receive reinforcement and feedback as soon as possible after training

Equity Theory of Motivation

People want to be treated fairly at work

Self-efficacy:

People's belief that they can successfully learn the training program content

Consumer-driven health (CDH) plan:

Provides employer financial contributions to employees to help cover their health-related expenses -Gives employees ownership of their health care dollars

Social Security Act of 1935 -

Provides old age, survivor's, disability, and retirement benefits

Say on Pay

Publically listed companies must allow share holders to vote on executive compensation

Retaliation

Punitive actions taken by employers against individuals who exercise their legal rights To prevent charges

Assigning responsibility for recruiting

Recruiting by employer or outsourced

Managing a Talent Surplus

Reduce working hours, attrition and hire freezes, voluntary separation programs workforce downsizing.(should be last option)

Recruitment process outsourcing (RPO)

Reduces recruiting time and costs

Knowledge management:

The way an organization identifies and leverages knowledge to be competitive

Cross-training:

Training people to do more than one job -Increases flexibility and development

Personal benefits statement:

Translates benefits into dollar amounts -Help employees see the value of their benefits

Job sharing

Two employees perform the work of one full-time job

Need Theory of motivation

Until the more basic needs are adequately met, a person will not fully strive to meet higher needs

Sexual harassment

Unwelcome verbal, visual, or physical conduct of a sexual nature that is severe and affects working conditions or creates a hostile work environment

Psychological contract

Unwritten expectations employees and employers have about the nature of their work relationships

M-learning:

Use of mobile technology to conduct training

E-learning:

Use of web-based technology to conduct training online

lag-the-market strategy

Used when the employer is experiencing financial difficulties and when an abundance of workers is available

Forecasting

Using information from the past and present to predict future conditions

Skill Variety

Work requires several activities for successful completion

Duty

Work segment comprised of several tasks that are performed by individuals

Exclusive remedy:

Workers' compensation benefits are the only benefits injured workers may receive from the employer to compensate for work-related injuries

return on investment (ROI)

calculation of the value of investments in human capital

Multinational operations mean

companies will be dealing with workers, customers, and suppliers from different cultures

Base Pay Basic

compensation that an employee receives, often as an hourly wage or salary

before the deal(merger aqc.)

conduct due diligence, assess risks, identify possible conflicts

Categories for exempt status

executive administrative professionals (learned and creative) computer outside sales (including pharmaceuticals)

order used in talent shortage

first: use overtime second: outsource work third: try alt. work arrangements fourth: bring back recent retirees fifth: increase contingent workers sixth: reduce turnover

Types of Employees

full time, part time, independent contractors, temporary workers, contingent workers

choices for profit sharing

funding options allocation options

SWOT analysis

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Third Party Administrator (TPA)

a vendor that provides administrative services to an organization

Outsourcing

transferring the management and performance of a business function to an external service provider

adult learning

ways in which adults learn differently than younger people

Common Approaches to Job Design

job enlargement job enrichment job rotation

MOOCs:

massive open enrollment online courses -Distance training/learning

Alternate Work Arrangements

nontraditional schedules that provide flexibility to employees

Post Integration(merger aqc.)

optimize workforce, identify and establish new culture

Most benefits are not taxed as income to employees, EXCEPT for?

paid time off

major criteria for Exempt Status under the FLSA

pay lvl per week (min 455/wk) paid on salary basis job duties and responsibilities -managing -advanced knowledge or training -

public sector workers

people who work for state-run services -They enjoy more benefits than those in the private sector -Belong to labor unions at a much higher rate than nongovernment workers Their union contracts include: -Free health care -Traditional defined benefit pension plans

Common Defined Contribution Plans

profit sharing plans -employee stock ownership -401K plan -auto-enrollment

Unemployment Compensation Law

provides funds for workers which are unemployed due to layoffs; allows time for workers to find another job; established by the federal Social Security Act in 1935; funded by taxpayers

results-based information

sales volume, cost reduction, units produced, improved quality

forms of cooperative training

school to work transition apprentice training internship

Job characteristics (things management can control)

skill variety, task identity, task significance, autonomy, feedback, working conditions, etc

Why is it important for multinational companies to determine how to compensate both host-county nationals and expatriates?

so that all employees will feel that they are being treated fairly. -Decisions about compensation impact global attraction and retention of employees for international employers

Legally Required Benefits

social security, workers' compensation, unemployment insurance

Gross-up

to increase the net amount of what the employee receives to include the taxes owed on the amount

challenges with profit sharing

•Disclosure of financial information •Variability of profits from year to year •Rewards not obviously linked to employee efforts

primary objectives of profit sharing

•Improve organizational results •Attract or retain employees •Improve product/service quality •Enhance employee morale •Focus employees on goals

Controlling Health Care Benefit Costs

•Reducing or Dropping Benefits •Cost Sharing with Employees •Sponsoring Wellness Programs •Fostering Employee Health Education •Changing Prescription Drug Programs •Consolidating of Benefits Packages

Types of Performance Information(measures)

- Trait-based info - behavior-based info -Results-based info

Purpose of Job Analysis

-Aids in HR planning, recruiting, and hiring -Provides accurate information for equal employment opportunity matters -Is the basis for compensation, training, and employee performance appraisals

Health Insurance Portability and Accountability Act (HIPAA) of 1996

-Allows employees to switch their health insurance when they change employers Requires employers to: -Provide privacy notices to employees -Not disclose of health information without authorization -Consider an entity that handles health information a business associate -Consider any disclosure of information a breach

Two-Factor Theory of motivation

-Assumes that one group of factors, motivators, accounts for individual motivation -Hygiene factors can cause dissatisfaction with work

Top Motivators

-Being appreciated -Respect in the workplace -Being able to utilize personal capabilities

What other areas can be measured to determine executive performance?

-Bonuses and incentives -Customer satisfaction -Employee satisfaction -Market share -Learning and development -Productivity -Quality

Chapter 9 Objectives

-Identify the importance of talent management and discuss two reasons it may be difficult -Explain the importance of succession planning and the steps involved in the process -Differentiate between organization-centered and individual-centered career planning -List options for development needs analyses -Discuss three career issues that organizations and employees must address -Identify several management development methods

chapter 11 objectives

-Identify the three general components of total rewards and give examples of each -Explain the major laws governing employee compensation -Outline strategic compensation decisions -Understand the challenges of managing global compensation systems -Illustrate the steps in developing a base pay system -Describe how individual pay rates are set

Chapter 10 Objectives

-Identify why performance management is necessary -Distinguish among three types of performance information -Explain the differences between administrative and developmental uses of performance appraisal -Describe the advantages and disadvantages of multisource (360-degree) appraisals - Discuss the importance of training managers and employees on performance appraisal and give examples of rater errors -Identify several concerns about appraisal feedback and ways to make it more effective

internal training

-Informal training -On-the-job training (OJT):

Sarbanes-Oxley (SOX)Act

-Reduces likelihood of illegal and unethical behaviors HR issues: Major concerns are linked to executive compensation and benefits Requires companies to: Establish ethics codes Develop employee complaint systems Have antiretaliation policies for employees who act as whistle-blowers to identify wrongful actions

Benefits Cost Control

-Reducing or dropping benefits -Cost sharing with employees -Sponsoring wellness programs -Fostering employee health education -Changing prescription drug programs -Consolidating of benefits packages

purpose of hiring temporary workers

-Screen individuals for full-time, regular employment -Match the firm's needs with the right workers -Avoid costs associated with benefits -Enhance staffing flexibility

Impact of FMLA

-Significant percentage of employees have taken family and medical leave -Employers have to cover the workload for employees on family leave -Places significant demands on HR professionals to ensure compliance with FMLA provisions

Benefits approach depends on many factors, such as:

-Size of the organization -Workforce competition -Organizational life cycle -Employee demographics -Financial circumstances -Corporate strategic approach

Characteristics to Consider in job Design

-Skill Variety -Task Identity -Task Significance -Autonomy -Feedback

Basic assumptions of Variable Pay

-Some people or groups contribute more to organizational success than do others -Some people perform better and are more productive than are others -Employees or groups who perform better or contribute more should receive greater compensation

In knowledge-based pay (KBP) or skill-based pay (SBP) systems employees:

-Start at a base level of pay -Receive increases as they learn to do other jobs -Gain additional skills and knowledge -Become more valuable to the employer

Expectancy Theory of motivation

-Suggested by Lyman Porter and E. E. Lawler -Individuals base decisions about their behaviors on their expectations of desired outcomes

Changing Nature of Careers

-Traditional perspective -Contemporary perspective

Core competency

-Unique capability that creates high value for a company Differentiates an organization from its competitors Is a key determinant of competitive advantage HR department focus on using people as a core competency

Retirement Plan Concepts

-Vesting -Portability

Benefits can influence employees' decisions about:

-Which employer to work for -Whether to stay with or leave an organization -When to retire

Tangible Direct Rewards

-base pay (wages and salary) -variable pay (bonuses, incentives, equity awards)

Elements of Executive Compensation packages

-base salary -annual incentives and bonuses -long-term incentives -regular benefits -supplemental benefits -perquisites -exit package

Identifying Criteria for Independent Contractors

-behavioral control -financial control -relationship-type factors

Types of Retirement Plans

-defined benefit plan -defined contribution plan -cash balance plan

Tangible Indirect Rewards

-health care benefits -paid time off -disability benefits

Elements of the Protean Career

-numerous short learning cycles -willing and able to adapt to changes -self-directed, proactive -seek feedback to form accurate self perceptions -reward is pride in work and achievement -career plan is driven by employee, not employer

metrics for variable pay plans

-organizational performance -sales programs -HR related

Performance Management Linkage

-organizational strategies -performance management -employee performance -performance management outcomes -organizational results

performance compensation

-pay and raises based on performance -no raises for poor-performing employees -market-adjusted pay scales -no raises for length of service or job tenure -industry comparisons of total rewards

Entitlements

-pay raises based on length of service. -across-the-board raises -pay scales increased annually -industry compensation of pay only -holiday bonuses given to all employees

Types of Sexual Harassment

1. Quid Pro Quo 2. Hostile Work Environment

Stages in the MBO Process

1. job review and agreement 2. development of performance standards 3. setting of objectives 4. continuing performance discussions

Steps of individual career planning

1. self assessment(who you are ) 2. reality check(how you are seen) 3.investigate your options 4.goal setting(create a plan) 5. action plan(take action to advance plan )

Evaluating Orientation(metrics)

1.Tenure turnover rate 2.New hires failure factor 3.Employee upgrade rate 4.Development program participation

HR planning process

1Review Organizations Environmental Analysis/Strategic Plans 2Assess External and Internal Workforce 3Compile HR Planning Forecasts 4Develop HR Staffing Plans and Actions

Job Characteristics Model (JCM)

=((S.V+TI+TS)/3)*(A)*(F) use: 1-10 scale, 1-7 scale, 1-5 scale

ROI = C/A+B

A = Operating costs for a new or enhanced system for the time period B = One-time cost of acquisition and implementation C = Value of gains from productivity improvements for the time period

counterpoint (executive compensation)

A competitive market for executives drives compensation packages increases. performance measured by short-term earnings and stock prices is insufficient

Garnishment:

A court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to a creditor

Affirmative Action Program (AAP)

A document that outlines proactive steps the organization will take to attract and hire members of underrepresented groups

Balanced scorecard

A framework organizations use to report on a diverse set of performance measures

Nine-Box Talent Grid:

A matrix showing past performance and future potential of all employees

Unit Labor Cost

A measure of HR productivity computed by dividing the average cost of workers by their average levels of output.

Productivity

A measure of the quantity and quality of work done, considering the cost of the resources used.

HR Specialist

A person who has in-depth knowledge and expertise in a specific area of HR

HR Generalist

A person who has responsibility for performing a variety of HR activities

strategy

A plan an organization follows for how to compete successfully, survive, and grow

Geocentric Policy

A policy of hiring and promoting based on ability and experience without considering race or citizenship

Ethnocentric Policy

A policy of hiring and promoting based on the parent company's home-country frame of reference

Regiocentric Policy

A policy of hiring and promoting based on the specific regional context in which the subsidiary operates

Strategic training can:

Add value that simply training cannot Help reduce the thinking that training alone can solve most problems Assess whether training can actually address issues Assess what else can be done

Human capital value added (HCVA)

Adjusted operating profitability figure

Uses for Performance Appraisals

Administrative Actions: -Dismissal from work -Disciplinary procedures -Compensation adjustments -Promotions/demotions -Transfers Developmental Actions: -Career progression -Training opportunities -Coaching/mentoring -Identifying strengths and weaknesses

Roles of HR Management

Administrative, Operational and employee advocate, Strategic

Managing Age Discrimination

Adopt age-neutral selection and promotion practices Recruit older people to return to the workforce through part-time and other attractive scheduling options

family-based benefits

Adoption Benefits Child-Care Assistance Elder-Care Assistance

Clawbacks

Allows a company to recover any incentive based pay that was paid out during the prior 3 years if it would not have been paid under restated financial statements

Flexible benefits plan:

Allows employees to select the benefits they prefer from options established by the employer

Graphic rating scale:

Allows the rater to mark an employee's performance on a continuum indicating low to high levels of a particular characteristic

Draw:

Amount advanced against, and repaid from, future commissions earned

Feedback

Amount of information employees receive about how well or how poorly they have performed (weighs heavy in Job Characteristics model)

HR Analytics

An evidence-based approach to making HR decisions on the basis of quantitative tools and models

Prevailing wage:

An hourly wage determined by a formula that considers the rate paid for a job by majority of the employers in the appropriate geographic area

Multinational corporation (MNC)

An organization that has facilities and other assets in at least one country other than its home country

Absenteeism

Any failure by an employee to report for work as scheduled or to stay at work when scheduled (Types) -Involuntary Absences -Voluntary Absences

Intermediate-range plans

Project one to three years into the future

Appearance and Weight Discrimination

*Employers are allowed to set uniform dress codes and appearance standards, as long as they are applied uniformly *Height and weight requirements must be specific to job functions

Benefits of Work Teams

- Improved Productivity - Increased Employee Involvement - Greater Co-worker Trust - Widespread Individual learning - Greater Employee Use of Knowledge Diversity

HR Forecasting Methods

- Judgmental methods - Mathematical methods

Training Evaluation Metrics

-Cost-benefit analysis -Return-on-Investment (ROI) Analysis -Benchmarking

Behavior-based information

-Customer satisfaction -Verbal persuasion -Timeliness of response -Citizenship/ ethics

Ch 13 objectives

-Define a benefit and identify four strategic benefits considerations -Analyze the differences between employee benefits in the United States and those in other countries -Distinguish between mandated and voluntary benefits and list three examples of each -Discuss the trends in retirement plans and compare defined benefit and defined contribution plans -Explain the importance of managing the costs of health benefits and identify some methods of doing so -Describe the growth of financial, family-oriented, and time-off benefits and their importance to many employees

chapter 12 objectives

-Define variable pay and identify three aspects of effective pay-for-performance plans -Compare three types of individual incentives -Identify key concerns that must be addressed when designing work unit/team variable pay plans -Specify why profit sharing and employee stock ownership are popular organizational incentive plans -Explain three ways in which sales employees are typically compensated -Identify the typical elements of executive compensation and discuss criticisms of executive compensation levels

Drawbacks of ranking:

-Does not indicate size of differences in performance between employees -Implies that lowest-ranked employees are unsatisfactory performers -Becomes an unwieldy process if the group to be ranked is large

Preventing Sexual Harassment

-Establish a sexual harassment policy -Communicate the policy regularly -Train employees and managers on avoiding sexual harassment -Investigate and take action when complaints are voiced

Elements of On-boarding

-Establish clear goal -Know what new hires want -start before "day one" on the job -provide multiple short sessions -create connections and networks -make it enjoyable

learning objectives for chapter 4

-Explain how the workforce is changing in unpredicted ways -Identify components of work flow analysis -Define job design and identify common approaches to job design -Discuss how flexible work arrangements are linked to work-life balancing efforts -Describe job analysis and the stages in the process -List the components of job descriptions

Health care benefits Compared to the year 2000

-Fewer Americans are covered by health plans -Fewer private companies provide health plans -Fewer employees enrolled in health plans -Single worker premiums increased 100% -Family premiums increased 125% -Employees pay more of the premiums -Average health care coverage expenses expected to increase to $11,304 per year Employees predicted to pay 23.6% of premiums ($2,664) and $2,487 in out-of-pocket expenses

Selecting a Quartile

-Financial resources available -Competitiveness pressures -Market availability of employees with different capabilities

Concerns with Graphic Rating Scales

-Form might not accurately reflect the importance of certain job characteristics -Factors may need to be added or removed depending on employee -Focus should be on job duties/responsibilities -Grouped traits can be rated differently by different supervisors -Descriptive words have different interpretations

Health Care Benefits

-Health plans are one of the most important benefits companies offer -Can cover medical, dental, prescription drug, and vision care expenses

Effective Performance Management System

-High, average, low performance is clear -Beneficial as a development tool -Useful as an administrative tool -Is legal and job related -Viewed as fair by employees -Effective in documenting performance

Polycentric Policy

-Host-country nationals staff key positions -Reduces cultural mishaps and misunderstanding -Coordination with headquarters may be problematic

Key HR Metrics

-Hr Staff and Expenses -Staffing -Compensation -Training -Retention and Quality -Development

Job Description Components

-Identification -General Summary -Essential Job Functions and Duties -Job Specifications -Disclaimers and Approvals

Challenges of cross-training

-Is not favored by employees -Threatens unions with loss of job jurisdiction and broadening of jobs -Requires scheduling work differently -May cause temporary decrease in productivity

How can compensation become excessive ?

-It is often based on peer group practices rather than rational compensation strategy -It increases as companies pay above average -CEOs have input as board members of other companies

Motives for organizational citizenship

-It is part of the job -Leads to a more desirable workplace -Gratitude, appreciation, recognition

Global Cultural Differences in Performance Management

-It is uncommon for managers to rate employees or to give direct feedback -Younger subordinates do not engage in joint discussions with their managers -Criticism from superiors is viewed as negative rather than as useful feedback

Training Design elements

-Learner Characteristics -Training Transfer -Instructional Strategies

External Training Advantages

-Less expensive to outsource training -Saves organization the time of developing training -Staff may lack expertise -Employees can interact with outsiders

Reasons for Variable Pay Plans

-Link strategic goals and employee performance -Enhance results and reward employees financially -Reward and recognize employee performance -Promote achievement of HR objectives -Reduce fixed costs

Multisource Appraisal

-Manager -Customer -Self -Subordinates -coworker/peers

What Benefits attractive to older workers?

-Modified work schedules -Part-time benefits -Simplified seasonal travel -Wellness programs -Annual financial planning counseling -Phased retirement programs allow employees to work part time and withdraw some retirement funds at the same time

Part-Time Employee Benefits

-Most do not receive employee benefits -Are least likely to receive health and life insurance benefits -Employers create their own full- and part-time thresholds

People characteristics (management cannot easily control)

-Motivation -Interests -Energy level -Personality variables -satisfaction predisposition -Physical characteristics -Honesty -Conscientiousness -Intelligence

Domestic Partner Benefits

-Not providing benefits to married same-sex couples may result in litigation under Title VII of the Civil Rights Act -Providing benefits to married same-sex couples shows that the organization: -Is accommodating and respectful of all employees -Can enhance recruiting, employee satisfaction, and retention

Bonus:

-One-time payment that does not become part of the employee's base pay Establish clear, metric-based reviews -Only employees who meet criteria receive a payout Educate managers and employees about the details and guidelines Spot Bonuses -Can be awarded at any time Other Bonuses: referral, hiring, retention

Sources of need assessments

-Organizational Analysis -Job/task Analysis -Individual analysis

Steps for On-the-Job Training(4)

-Prepare the trainees -Present the information -Provide the trainees w/ practice -Do follow-ups

Additional Laws Affecting Compensation

-Prevailing wage -Garnishment

Performance Criteria for Appraisals

-Quantity of output -Timeliness of output -Efficiency of work completed -Effectiveness of work completed -Presence/attendance on the job -Quality of output

Levels of Evaluation

-Reaction (interviews or administering questionnaires) -Learning (Measuring) -Behaviors (performance through observing workers on the job) -Results (effect of training on the achievement of organizational objectives)

recruitment outsources ?

-Recruitment process outsourcing (RPO) -Professional employer organizations (PEOs) and employee leasing

Future trends of hr is in what shape.

-upside down pyramid Strategic on top operational in middle admin on the bottom

Components of a Performance-Focused Culture

1) Clear Expectations, goals and deadlines. 2) Detailed appraisal of employee performance. 3) Clear feedback on performance. 4) Manager and employee training as needed. 5) Consequences for performance

Effectiveness

Ability of a program, project, or task to produce a specific desired effect or result that can be measured

Elements of labor force participation rate?

Age/Generational Groups Skill Gaps Improving Readiness to Work Skill Shortages

lead-the-market strategy

Aggressive approach that enables a company to attract and retain sufficient workers with the required capabilities and be more selective when hiring

Benefits are offered to:

Aid recruiting and retention Improve organizational performance Meet legal requirements Reinforce the company philosophy of social and corporate citizenship

Assessment centers:

Collections of test instruments and exercises designed to diagnose an individual's development needs

Managed care:

Approaches that monitor and reduce medical costs through restrictions and market system alternatives

Environmental scanning

Assessment of external and internal environmental conditions that affect the organization -interna & external

Pay-for-performance philosophy:

Assumes that compensation decisions reflect performance differences

Entitlement philosophy:

Assumes that individuals who have worked another year with the company are entitled to pay increases with little regard for performance differences

Match-the-Market Strategy

Attempts to balance employer cost pressures and the need to attract and retain employees by providing compensation levels that meet the market for the employer's jobs

Human capital

Collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization's workforce

Job analysis

Gathering and analyzing information about the content, context, and the human requirements of jobs

Loyalty

Being faithful to an institution or employer

Vesting:

Benefit that cannot be taken away -No pension rights accrue if they have not been employed long enough to be vested

Cash Balance Plan:

Benefits are base on accumulated annual company contributions (% of pay + interest)

job enlargement

Broadening the scope of a job by expanding the number of different tasks that are performed (horizontal movement)

Blended learning:

Combines short, fast-paced, interactive computer-based lessons and teleconferencing with traditional classroom instruction and simulation

Salary plus commission:

Combines the stability of a salary with a commission based on sales generated

Employment brand

Distinct image of the organization that captures the essence of the company to engage employees and outsiders

Task

Distinct, identifiable work activity comprised of motions that employees perform

How is Executive Compensation handled differently from employee pay?

CEO responsibilities: -Establish strategic direction for the organization -Create shareholder value -Ensure the sustainability of the enterprise

human capital return on investment (HCROI)

Calculation of the amount of profit derived from investment in labor

Managing Religious Diversity in Workplaces

Changing an employee's job tasks or scheduling Making an exception to dress and grooming rules Making accommodations relating to paying union dues or agency fees Accommodating prayer, proselytizing, and other forms of religious expression

Job redesign

Changing existing jobs in different ways to improve them

Expatriate

Citizen of one country working in a second country and employed by an organization headquartered in the first country

Core versus Flexible Staffing

Companies can mix and match core, temporary, and contract workers to accommodate changing business needs

Cost-benefit analysis:

Comparison of costs and benefits associated with training

Host Country-Based Approach

Compensates the expatriate at the same level as workers from the host country

Variable Pay

Compensation linked directly to individual, team, or organizational performance

Variable pay:

Compensation that is tied to performance -Performance evaluated at individual, group, or organizational level -People work harder if pay is tied to performance

Special Pay/Overtime Issues

Compensatory Time Off Incentives for Nonexempt Employees Training Time Security Inspection Time After-Hours Email Time Travel Time Donning and Doffing Time

Hr management challenges

Competition, Cost Pressures, and Restructuring Globalization A Changing Workforce Human Resource and Technology

Self-directed team

Composed of individuals who are assigned a cluster of tasks, duties, and responsibilities to be accomplished

Virtual team

Composed of individuals who are separated geographically but linked by communications technology

Due diligence

Comprehensive assessment of all aspects of the business being acquired

Role of HR professionals

Conducting comprehensive reviews of the political environment and employment laws before beginning operations in a country

Salary

Consistent payments made each period regardless of the number of hours worked

Behavioral modeling:

Copying someone else's behavior

recruiting considerations

Cost of recruiting Quality of talent Quantity of talent Cost of unfilled jobs

Strategy Formulation

Covers 3-5 years Consider internal and external forces Analyze strengths, weaknesses, opportunities, threats Determine objectives Formulate strategies to meet objectives Managers must focus on strategy

Performance standards:

Define the expected levels of employee performance -Should be realistic, measurable, and clearly understood -Benefit both organizations and employees

chapter 8 objectives

Define training and discuss why a strategic approach is important Explain the major categories of training and describe instructional systems design Identify three types of analyses used to determine training needs Specify how to design a training program for adult learners Explain different means of internal and external training delivery Provide an example for each of the four levels of training evaluation

Strategic Planning

Defining organizational strategy, or direction, and allocating resources toward its achievement

Efficiency

Degree to which operations are carried out in an economical manner

Organizational commitment

Degree to which workers believe in and accept organizational objectives and want to remain employed at a company

Behaviorally anchored rating scale (BARS):

Describes specific examples of job behavior which are then "anchored" or measured against a scale of performance levels

Human resource management

Designing formal systems in an organization to manage human talent for accomplishing organizational goals

Employer of choice

Desirable places to work because of employee engagement, satisfaction, pay, benefits, schedules, social responsibility, etc. -Receive more applicants

Motivation

Desire that exists within a person that causes that individual to act

Methods of addressing absenteeism

Disciplinary approach, Positive reinforcement, Combination approach, No-fault policy, Paid-time-off (PTO) programs

Civil Rights Act of 1964, Title VII made it illegal for employers to?

Discriminate fail or refuse hire different compensation between groups.

Glass ceiling

Discriminatory practices that have prevented women and minority status employees from advancing to executive-level jobs

Marginal job functions

Duties that are part of a job but are incidental or ancillary to the purpose and nature of the job

work

Effort directed toward accomplishing results

Development:

Efforts to improve employees' abilities to: -Handle a variety of assignments -Cultivate employees' capabilities beyond those required by the current job

Tangible Rewards

Elements of compensation that can be quantitatively measured and compared between organizations

Intangible Rewards

Elements of compensation that cannot be as easily measured or quantified

Legal Requirements of Retirement Benefits

Employee Retirement Security -Employee Retirement Income Security Act (ERISA) in 1974 -Retirement Benefits and Age Discrimination (ADEA) in 1986 -Older Workers Benefit Protection Act (OWBPA) in 1990

Auto-enrollment:

Employee contributions to a 401(k) plan are started automatically when an employee is eligible to join the plan

Expectancy theory:

Employee's motivation is based on the probability that his or her efforts will lead to an expected level of performance that is linked to a valued reward -Rewards that are not appreciated by the employee have little value to motivate -common mindset toward compensation

Cafeteria benefit plan:

Employees are given a budget and can purchase the bundle of benefits most important to them from the "menu" of options offered by the employer

Contemporary perspective:

Employees are proactive about their own satisfaction, determining skills, competencies, work-life balance, personal challenges

Defined Benefit Plan:

Employees are promised a pension amount based on age and years of service

Telework

Employees complete work through electronic interactions, telecommunications, and Internet technology -24% of Americans work at least some hours at home each week

Phased retirement

Employees gradually reduce their workloads and pay level

Core workers

Employees that are foundational to the business -Work year round

Flexible workers

Employees that are hired on an "as needed" basis -Labor costs are variable instead of fixed expense 1/5 of Americans are flexible workers -Challenges: low motivation, lower performance, increased costs

Exempt employees:

Employees who are not paid overtime -Salary pay(fixed)

Nonexempt employees:

Employees who must be paid overtime -Hourly pay

Career paths:

Employees' movements through opportunities over time

Defined Contribution Plan:

Employer and/or employee makes an annual payment to employee's retirement account

Traditional perspective:

Employer is expected to lead employee development; employee focus on upward moves to gain status and rewards

Work-life balance

Employer-sponsored programs designed to help employees balance work and personal life -Reduces conflicts between work and family -Improves recruiting and retention by attracting and keeping people who want the flexibility

How is variable pay is beneficial for both employers and employees?

Employers - More output per employee, lower fixed costs, some risk shifted to employee Employees - More pay

Temporary workers

Employers can hire their own staff members or make use of agencies on an hourly, daily, weekly basis

Status-blind:

Employment decisions that are made without regard to individuals' personal characteristics

Equal employment opportunity (EEO)

Employment that is not affected by illegal discrimination

Judgmental Methods

Estimates The rule of thumb The Delphi technique Nominal groups

point (executive compensation)

Executive compensation often does not reflect company performance. many ppl, not just CEOs contribute to the success of a company.

Games:

Exercises that entertain and engage

long-range plans

Extend beyond three years

Overtime:

FLSA established overtime pay requirements at 1.5 times the regular pay rate for all hours worked over 40 in a week

Laws Governing Compensation

Fair Labor Standards Act (FLSA) -Minimum Wage -Child Labor Provisions -Exempt and Nonexempt Statuses -Overtime Pay

Talent acquisition

Finding and hiring high-quality talent needed to meet the organization's workforce needs

ADDIE model

Five-step instructional design process that governs the development of learning programs. -Analysis -Design -Development -Implementation -Evaluation

Training

Focus: Learn specific behaviors; demonstrate capabilities Time-frame: Short-term Effectiveness measure: performance reviews; cost-benefit analysis; test/certification success

Development

Focus: Understanding concepts; developing judgment and capabilities Time-frame: Long-term Effectiveness measure: Availability of talent; promoting from within; competitive advantage

Individual-centered career planning:

Focuses on an individual's responsibility for a career rather than on organizational needs

Attitude survey

Focuses on employees' feelings and beliefs about their jobs and the organization

Organization-centered career planning:

Focuses on identifying career paths that provide for the logical progression of people between jobs in an organization

Short-range plans

Forecast for the immediate HR needs of an organization

HR audit

Formal research effort to assess the current state of an organization's HR practices

Job evaluation:

Formal, systematic means to determine the relative worth of jobs within an organization

Special-purpose team

Formed to address specific problems, improve work processes, and enhance the overall quality of products and services

Measuring Absenteeism

Formula suggested by the U.S. Department of Labor -number of persons - days lost through job absence during period / (average number of employees) x (number of workdays)x100

Compressed workweek

Full week's work is accomplished in fewer than five 8-hour days

Essential job functions

Fundamental job duties

Pay equity

Idea that pay for jobs requiring comparable levels of knowledge, skill, and ability should be similar, even if actual duties differ significantly

Job Description

Identification of a job's tasks, duties, and responsibilities

Strategic talent management:

Identifying the most important jobs in a company that provide a long-term competitive advantage and then creating appropriate HR policies to develop employees so that they can effectively work in these jobs

No-fault insurance:

Injured worker receives benefits even if the accident was the employee's fault

Serious health condition of the employee

Illness or injury that requires inpatient care or continuing treatment by a health care provider for medical problems that exist beyond three days -Military family members who must handle the affairs for military members called to active duty -26 weeks leave to care for a military servicemember injured while on active duty

Task Significance

Impact the job has on other people

Job duties:

Important elements in a given job as identified from job descriptions

what makes up an individual career profile?

Interests Skills Personality Values

How might Benefits differ significantly across the globe?

In many countries, employers and employees are taxed heavily to pay into government funds -Total hourly compensation -Retirement and health insurance plans -Amount of paid leave and vacation time -Paid time off for childbirth and medical disability -Paid sick leave policies

What do benefits include?

Include retirement plans; paid time off; health, life, and disability insurance; and more -U.S. employers often provide benefits -Taxes pay for many other countries' benefits -U.S. benefit cost average 33%-50% of payroll expenses -Health insurance is the largest percentage

job enrichment

Increasing the depth of a job by adding responsibility for planning, organizing, controlling, and/or evaluating the job (vertical movement)

Red-circled employees:

Incumbent who is paid above the range set for the job

Gap analysis:

Indicates the distance between current and desired employee capabilities objectives -Knowledge -Skill -Attitude

Performance Standards

Indicators of what the job accomplishes and how performance is measured in key areas of the job description

Benefit

Indirect reward given to an employee or group of employees as part of membership in the organization

Protected characteristics

Individual attributes that are protected under EEO laws and regulations Age Color Disability Genetic information and marital status (some states) Military status or experience

Competencies

Individual capabilities that can be linked to enhanced performance by individuals or teams ex. Technical/Behavioral comp. -Identifies characteristics that make employees successful on the job -Strives to influences future job performance

Autonomy

Individual freedom and discretion in the work and its scheduling (weighs heavy in Job characteristic model)

Equity theory:

Individuals judge fairness (equity) in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others -Referent others: Workers that the individual uses as a reference point to make these comparisons -where we see the most problems with unequal compensation

Exit interview

Individuals who are leaving the organization are asked to give their reasons

Disparate treatment

Individuals with particular characteristics that are not job related are treated differently from others

Glass elevators

Limits that keep women from progressing only in certain fields

Job Specification

Knowledge, skills, and abilities (KSAs) an individual needs to perform a job satisfactorily

Development Focuses(2)

Lifelong learning -Necessary for many professionals -Desired to expand skills Reinvention -Necessary for shifting employer capabilities -Desired for a career change

Spousal exclusions:

Limit access to a company's health plan when employee's spouse works for another company that offers health insurance

Home Country-Based Approach

Maintains the standard of living the expatriate had in the home country

Person-job fit

Matching the characteristics of people with the characteristics of jobs -Based on the match between individual characteristics and the unchangeable components of a job, people will differ on what they consider a good or bad job

Family Medical Leave Act (FMLA) provisions

Maximum of 12 weeks of unpaid, job-protected leave during any 12-month period for the following situations: -Childbirth and newborn care within one year of birth -Adoption or foster care placement of a child -Caring for a spouse, child, or parent with a serious health condition

Reasonable accommodation

Modification to a job or work environment that gives a qualified individual an equal employment opportunity to perform

Total rewards:

Monetary and nonmonetary rewards provided by companies to attract, motivate, and retain employees

sexual orientation

No federal law prohibiting discrimination on the basis of sexual orientation 18 states have passed laws to protect discrimination on the basis of sexual orientation

Contingent workers

Not a full-time employee, but a temporary or part-time worker for a specific period of time and type of work

Acts and Legislation Affecting Compensation

Paycheck Fairness Act Equal Pay Act of 1963 Lilly Ledbetter Fair Pay Act Independent Contractor Regulations

Wages

Payments calculated directly from the basis of time worked by employees

Informal training:

Occurs through interactions and feedback among employees

Pay compression:

Occurs when the pay differences among individuals with different levels of experience and performance become small

Staffing Strategies(2)

Offshoring Expatriate:

Employers develop benefit communication systems using:

Online/Print Materials Group Sessions Personal Counseling Benefits Website and Social Media

Adverse selection:

Only higher-risk employees select and use certain benefits

What does HR do to improve productivity. (4)

Organization Restructuring redesigning work Aligning hr Activities Outsourcing analysis

Job design

Organizing tasks, duties, responsibilities, and other elements into a productive unit of work -Influences performance -Affects job satisfaction -Impacts both physical and mental satisfaction

Health Care Reform Legislation

Patient Protection and Affordable Care Act (PPACA) phased in to coverage in 2014 Debate and litigation continues regarding PPACA PPACA specifies 30 hours a week is full time Employer-sponsored health benefits will continue to change

Other Motivators:

Pay and employment security Good managers/leaders Feedback, training, benefits Motivational speakers, T-shirts, mugs, books, and videos

Labor force participation rate

Percentage of the population working or seeking work

Commission:

Percentage of the revenue generated by sales that is given to an agent or salesperson

Active Practice:

Perform job-related tasks and duties during training

Individual Performance Factors

Performance (P) = Ability (A) x Effort (E) x Support (S) -Individual ability to do the work -Effort expended -Organizational support

Management by objectives (MBO):

Performance appraisal method that highlights the performance goals that an individual and manager identify together

types of Organizational Assets (4)

Physical Human Financial Intellectual property

401(k) plan:

Plan allows for a percentage of an employee's pay to be withheld and invested in a tax-deferred account

Orientation:

Planned introduction of new employees to their jobs, coworkers, and the organization

Job satisfaction

Positive feelings and evaluations derived from an individual's employment in a job -Morale: Job satisfaction of a group or organization

Nepotism

Practice of allowing relatives to work for the same employer

Broadbanding:

Practice of using fewer pay grades with much broader ranges than in traditional compensation systems

Succession planning:

Preparing for inevitable vacancies in the organization hierarchy -Retirements, transfers, promotions, turnover

Fair Labor Standards Act (FLSA) -

Primary federal law affecting compensation which is enforced by the Wage and Hour Division of the U.S. Department of Labor Provisions focus on the areas covering: Minimum wage Limits on the use of child labor Overtime provisions (exempt and nonexempt status)

Affirmative action

Proactive employment practices to compensate for historical discrimination against minorities

Turnover

Process in which employees leave an organization and have to be replaced Signs of Possible Turnover

Benchmarking

Process of comparing an organization's business results to industry standards or best practices

Performance Appraisal

Process of determining how well employees do their jobs relative to a standard and communicating that information to them

Recruiting

Process of generating a pool of qualified applicants for organizational jobs -Recruiting connects companies to sources of employees; selection involves picking the best supplier of talent

Succession planning:

Process of identifying a plan for the orderly replacement of key employees

Job Rotation

Process of shifting a person from job to job

Training:

Process whereby people acquire capabilities to perform jobs

retirement plan:

Program established and funded by the employer and/or employees to fund employee's retirement years

Forced distribution:

Ratings of employees' performance levels are distributed along a bell-shaped curve

Disability Discrimination

Rehabilitation Act Americans with Disabilities Act -Enforced by the EEOC Americans with Disabilities Act

Offshoring

Relocation of a business process or operation from one country to another.

Reinforcement: Based on the idea that people:

Repeat responses that give them some type of positive reward Avoid actions associated with negative consequences

Overlearning:

Repeated practice even after a learner has mastered the content

Simulations:

Reproduce parts of the real world so they can be experienced, manipulated, and learning can occur

Portability:

Retirement plan feature that allows employees to move their retirement benefits from one employer to another -Once workers are vested they can transfer their retirement benefits from one employer to another

Challenges with work unit/team incentives

Rewards distributed in equal amounts to all members may be perceived as unfair -Free rider: Member of the group who contributes little -Group size: Individual efforts of employees have little effect on the total performance of the group in large groups

Competency-based pay:

Rewards individuals for the capabilities they demonstrate and acquire -knowledge-based pay(KBP) -skilled-based pay(SBP)

HR perspective on workplace romance

Risky and have great potential for causing conflict

Key performance indicators (KPIs):

Scorecard measures that tell managers how well the organization is performing relative to critical success factors

Workers' compensation:

Security benefits provided to workers who are injured on the job

Retirement issues (areas of adjustment)

Self-direction Need to belong Satisfying achievement needs Personal space Goals

Performance Management

Series of activities designed to ensure that the organization gets the performance it needs from its employees

Career:

Series of work-related positions a person occupies through life

Organizational culture

Shared values and beliefs that give members of an organization meaning and provide them with rules for behavior

Gainsharing:

Sharing with employees greater than expected gains in profits and/or productivity

Error-based examples:

Sharing with learners what can go wrong when they do not use the training properly

Controversy around Exc. Compensation

Should include an element of risk for the executive When organization underperforms, executive payouts should fall

High-potential individuals (HiPos):

Show high promise for advancement in the organization

Undue hardship

Significant difficulty or expense imposed on an employer when making an accommodation for individuals with disabilities

EEOC issued guidelines stating that employers may require workers to

Speak only English at certain times or in certain situations, but the business necessity of the requirements must be justified

HR Metrics

Specific measures of HR practices

Professional employer organizations (PEOs) and employee leasing

Staff is hired by______ and leased to employer Leasing firm pays wages, pays taxes, and handles HRM -Employer signs an agreement with the PEO

Mathematical Methods

Statistical regression Simulation models Productivity ratio Staffing ratios

-Compliance with all applicable laws and regulations -Cost-effectiveness for the organization -Internal and external equity for employees

Strategic decisions can guide the design of compensation practices

Workflow analysis

Study of the way work (inputs, activities, and outputs) moves through an organization inputs(materials, data, etc) equipments(machine, facilities) people(skills, experience) >>go into "work"(which is required to produce output) >>>end up with measurable output

3 types of compensation

Tangible Direct Rewards(60%) Tangible indirect Reward(30%) Intangible Rewards (10%)

Benefit:

Tangible indirect rewards provided to an employee or group of employees for organizational membership

Self-service

Technology that allows employees to: -Change their benefits choices -Track their benefit balances -Submit questions to HR staff members and external benefit providers

Severance benefits

Temporary payments made to laid-off employees to ease the financial burden of unemployment

O*NET

The Occupational Information Network (O*Net) is a comprehensive, interactive database developed by the US Department of Labor to identify and describe important information about occupations, worker characteristics, work skills and training requirements. contains data on 800+ occupations, classified by industry, and includes: -Task statements of importance, relevance, and frequency -Abilities, training, work experiences, and education -Interests, work values, work styles, and job zones

Sex/Gender Discrimination Laws

The Pregnancy Discrimination Act (PDA) Family and Medical Leave Act (FMLA) The Equal Pay Act

Equity

The perceived fairness of what the person does compared with what the person receives for doing it

Organizational mission

The core reason for the existence of the organization and what makes it unique

Employee engagement

The extent to which an employee's thoughts and behaviors are focused on his or her work and their employer's success

On-the-job training (OJT):

The most common training because it is flexible and relevant

whats an example of Outsourcing benefits administration

Third-party administrator (TPA)

Compensation Quartile Strategies

Third: Lead-the-market Second: Match-the-market First: Lag-the-market -where are my quartiles? -what is the percentage of each ?

Open enrollment:

Time when employees can change their participation level in various benefit plans and switch between benefit options typically NOV-DEC

When communicating benefit information, consider:

Timing and Frequency Communication Methods Significant Changes to Benefits Rationale

AAP Objective

To have the company's workforce demographics reflect as closely as possible the demographics in the labor market from which workers are recruited

Critical success factors:

Variables that have a strong influence on the results of the organization

disadvantages of ESOP

Wages and retirement benefit tied to the firm's future performance

Human economic value added (HEVA)

Wealth created per employee

Organizational citizenship

When an employee acts in a way that improves the psychological well-being and social environment of an organization

Disparate impact

When an employment practice that does not appear discriminatory adversely affects individuals with a particular characteristic

Glass cliff

When women and minorities are promoted to top management only when companies are failing

Medicare

a government-operated health insurance for Americans 65 and older -Taxed on both employer and employee

During integration(merger aqc.)

address key HR processes, retain key talent, recognize cultural differences

trait-based information

attitude teamwork initiative creativity values dispositions

Individual Rewards

how to compensate the individuals whose performance may also be evaluated on team achievements

Team Rewards

how to develop compensation programs that build on the team concept

environmental scanning helps in

identifying strengths, weaknesses, opportunities, and threats

Managing a Talent Shortage

increase employee work hours through overtime, outsource to a third party, implement alternative work arrangements, use contingent workers, reduce employee turnover

Green-circled employee

incumbent who is paid below the range set for a job

Levels of Variable Pay

individual employee team/work unit organization wide

HR Functions

strategy and planning equal employment opportunity staffing talent management rewards risk management and worker protection employee and labor relations

Compensation System Design Issues

team rewards vs individual rewards

Leadership development

the activity of providing opportunities for the development of leadership abilities -Modeling -Mentoring -Exc. Ed -Coaching


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