BMGT 3630 TEST 5 CH 11, 12, 13 & 16

Spot bonus

A bonus given at any time for achievements that deserve special recognition.

Other bonus

A bonus given for other various reasons.

Referral bonus

A bonus given for referring someone who is hired.

Retention bonus

A bonus given to keep a valuable employee on staff.

Project completion bonus

A bonus given upon completion of a difficult project.

Hiring bonus

A bonus given when someone accepts a job offer.

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.

Current profit-sharing

A form of profit-sharing where the employer distributes a percentage of profits quarterly or annually to employees.

Deferred profit-sharing

A form of profit-sharing where the employer puts cash awards into trust accounts for the employee's retirement.

Graduated vesting

A form of vesting that involves employees receiving a percentage of vesting over a specified number of years to become fully vested.

Business agent

A full-time union official who operates the union office and assists union members.

Claw back provision

A law that allows a company to recover any incentive-based pay that was paid to CEOs and CFOs within a year for organizational misconduct that results in an earnings restatement.

Say on pay provision

A law that requires publicly listed companies to allow shareholders to vote on executive compensation.

Preferred provider organization

A managed care plan that involves a group of health care providers from different clinics that the insured can choose from and does not require referrals for specialists.

Health maintenance organization

A managed care plan that requires a designated clinic and primary care physician who is the gatekeeper for providing required specialist referrals but they must be within the same clinic.

Three-legged stool

A model showing the three sources of income to fund an employee's retirement.

Performance-based raise

A pay raise linked to individual job performance or results and sometimes excellent effort.

Standardized raise

A pay raise that is an automatic pay raise.

Two-tier wage systems

A pay system involving new employees hired after a specific date being paid a lower wage than employees hired before the date and at the end of the year the wage is brought up to the regular pay rate.

Portability

A pension plan feature that allows employees to move their pension benefits from one employer to another.

Coinsurance

A percentage of a covered service paid by the insurance company once the deductible is met.

Summary annual report

A personal statement that translates benefits into dollar amounts.

Pay ranges

A series of steps or levels within a pay grade.

Seniority raise

A standardized raise involving periodic base pay increases based on an employee's tenure or length of service in a job or company.

Across the board raise

A standardized raise that involves a specific amount being given to all employees.

Lump-sum increase

A standardized raise that is a one-time payment of all or part of a yearly pay increase that is not added to the base pay.

Market-based increases

A standardized raise that is given when the employee's pay is below the market and the raise is used to make the pay competitive and be at market.

Organizing campaign

A systematic campaign to persuade individuals to join a union.

Open enrollment

A time when employees can change their participation level in various benefit plans and switch between benefit options.

Cliff vesting

A type of vesting that involving having to work a specified number of years to become fully vested.

Third-party administrator

A vendor that provides administrative services to an organization.

Massive kinked bonus

A very large all or nothing bonus.

Dodd-Frank Act of 2010

Act that places regulations on the financial industry in the hands of the government.

Sarbanes-Oxley Act of 2002

Act that prohibits executive from retaining bonuses or profit from selling company stock if they misled the public about the organization's financial health.

Protected concerted activities

Actions taken by employees working together to try to improve their pay and working conditions, with or without a union.

Unfair labor practices

Actions that employers are legally prohibited from taking to prevent employees from unionizing.

401(k) plan

Agreement in which a percentage of an employee's pay is withheld and invested in a tax-deferred account.

Draw

Amount advanced against, and repaid from, future commissions earned by the employee.

National Labor Relations Board

An agency oversees representation elections, supervises the negotiation process between an organization and union, and prosecutes violators or organizations who engage in unfair labor practices.

Federal Mediation and Conciliation Service

An agency to help organizations and unions settle labor contract disputes.

"Hot cargo" agreements

An agreement between an employer and union in which the employer agrees to not work with another entity that the union has a dispute with.

Qualifying event

An event that causes a plan participant to lose group health benefits.

Prevailing wage

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

Pay raise

An increase in an employee's pay.

Benefit

An indirect reward given to an employee or group of employees for organizational membership.

Managed care plans

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

Base pay

Basic compensation that an employee receives, usually as a wage or salary.

Discretionary benefits

Benefits provided to employees that are not required of the organization.

Mandated benefits

Benefits provided to employees that are required of the organization by law.

Golden handcuffs

Bonuses or other benefits which must be repaid to the organization if the executive leaves before the date agreed upon in their contract.

Secondary boycotts

Boycotting an organization that the union members do not have a primary dispute with but is associated with the targeted organization they are in conflict with.

Health savings account

CDH plan involving both the employer and the employee contributing to the fund.

Health reimbursement account

CDH plan that is funded and owned completely by the organization.

Union authorization card

Card signed by employees to designate a union as their collective bargaining agent.

Pay survey

Collection of data on compensation rates for workers performing similar jobs in other organizations.

Mandatory issues

Collective bargaining issues identified specifically by labor laws or court decisions as subject to bargaining.

Permissive issues

Collective bargaining issues that are not mandatory and that relate to certain jobs.

Illegal issues

Collective bargaining issues that would require either party to take illegal action.

Commission

Compensation computed as a percentage of sales in units or dollars.

Golden parachute

Compensation given to an executive if he/she is forced to leave the organization due to a change in ownership, a merger, or an acquisition.

Platinum parachute

Compensation given to an executive if he/she is forced to leave the organization due to unsatisfactory performance.

Variable pay

Compensation linked directly to individual, team, or organizational performance.

Variable pay

Compensation that is tied to performance.

Grievance

Complaint formally stated in writing.

Salary

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

Union busters

Consultants who specialize in combating unionization efforts.

Union security provisions

Contract clauses to help the union obtain and retain members.

Top hat plans

Deferred compensation and a supplemental executive retirement plan.

Summary plan description

Details the rights and benefits associated with a particular plan.

Living wage

Earnings that are supposed to meet the basic needs of an individual in an area.

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 calculated.

Auto-enrollment

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

Union steward

Employee elected to serve as the first-line representative of unionized workers.

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.

Straight piece-rate system

Employees are paid a wage for each unit, with usually a standard output expected.

Differential piece-rate system

Employees are paid a wage per unit up to a standard output and a higher wage for units produced over the standard.

Bargaining unit

Employees eligible to select a single union to represent and bargain collectively for them.

Exempt employees

Employees who are not paid overtime.

Nonexempt employees

Employees who must be paid overtime.

Union

Formal association of workers that promotes the interests of its members through collective action.

Job evaluation

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

Federation

Group of autonomous unions.

National and international union

Group of craft and/or industrial unions.

Market banding

Grouping jobs into pay grades based on similar market survey amounts.

Pay grades

Groupings of individual jobs having approximately the same job worth.

Consumer-driven health plan

Health plan that provides employer financial contributions to employees to help cover their health-related expenses.

Organizational incentives

Incentives given to employees to reward them for performance results of the organization.

Work unit/team incentives

Incentives given to reward an entire work unit or team for its' performance

Individual incentives

Incentives given to reward the effort and performance of individuals.

Red-circled employee

Incumbent who is paid above the range set for a job.

Green-circled employee

Incumbent who is paid below the range set for a job.

Complaint

Indication of employee dissatisfaction.

Benefit

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

No-fault principle

Injured workers receive benefits even if the accident was their fault.

Contributory

Involves both the employee and the employer providing funds for a benefit.

Wage fixing

Involves companies artificially holding down wages or benefits.

Trust gap

Involves employees not trusting top management's intentions because they keep saying employees are important, but yet their pay has steadily decreased and top management's pay keeps increasing.

Solicitation

Involves employees or other unions contacting employees by phone or email to organize a union.

Distribution of leaflets

Involves handing out pamphlets.

Spillover effect

Involves organizations avoiding unionization efforts by offering employees the same wages, benefits, and working conditions that their unionized competitor's do.

Picketing

Involves people congregating outside the organization with signs.

Employee-funded

Involves the employee providing all of the funds for a benefit.

Noncontributory

Involves the employer providing all of the funds for a benefit.

Pay communication

Involves the organization communicating pay information to employees and possibly outsiders as well as allowing or prohibiting discussions about pay information among employees.

Exclusive representation

Involves the union being the only union that represents and bargains collectively for the employees.

Classification method

Job evaluation method involving

Point factor method

Job evaluation method involving looking at compensable factors in a group of similar jobs & places weights or points on each factor

Ranking method

Job evaluation method involving placing jobs in order from highest to lowest based on their value to the organizations.

Factor-comparison method

Job evaluation method that is a combination of the point factor method and the ranking method and involves organizations identifying benchmark jobs and developing their own compensable factors, then ranking all benchmark jobs and compare them to market rates for benchmarking, and then comparing. the remaining jobs to the benchmark jobs

Compensable factor

Job value commonly present throughout a group of jobs within an organization.

Spousal exclusion

Limits spouses enrollment in a company's health insurance plan when their employer offers health insurance.

Meet-the-market strategy

Market competitive strategy where a company target pay ranges so that 50% of other companies pay above and 50% pay below.

Lead-the-market strategy

Market competitive strategy where a company targets pay ranges so that 25% of other companies pay above and 75% pay below.

Lag-the-market strategy

Market competitive strategy where a company targets pay ranges to that 75% of other companies pay above and 25% pay below.

Grievance arbitration

Means by which a third party settles disputes arising from different interpretations of a labor contract.

Total rewards

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

Tangible direct rewards

Monetary or financial incentives provided by companies.

Deductible

Money paid by an insured individual before a health plan pays for any medical expenses.

Tangible indirect rewards

Non-financial incentives provided by companies that can be easily translated into a cash value.

Performance awards

Nonmonetary incentive given to an employee for exceptional performance.

Recognition awards

Nonmonetary incentive given to an employee for their hard work.

Service awards

Nonmonetary incentives given to an employee for their length of service or tenure.

Impasse

Occurs when business agents or the union members do not accept the terms of the labor agreement and so an agreement is not reached.

Pay compression

Occurs when the pay differences among employees across different levels become small.

Pay inversion

Occurs when the pay given to new hires is higher than the pay provided to more senior employees.

Bonus

One-time payment that does not become part of the employee's base pay.

Restricted stock option

Option that indicates that company stock shares will be paid as a grant of shares to individuals, usually linked to achieving specific performance criteria.

Pay secrecy

Pay communication practice where the organization does not provide any pay information to employees and has a pay secrecy policy that prohibits employees from discussing their pay with others.

Pay openness

Pay communication practice where the organization provides pay information to employees and allows employees to discuss their pay with others.

Piece-rate system

Pay system in which wages are determined by multiplying the number of units produced by the piece rate for one unit.

Wages

Payments calculated directly from the amount of time worked by employees.

Employee stock ownership plan

Plan designed to give employees significant stock ownership with their employers.

Flexible spending account

Plan that allows employees to contribute pre-tax dollars to fund medical expense or daycare expenses.

Paid-time-off plan

Plan that combines all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay.

Stock option plan

Plan that gives employees the right to purchase a fixed number of shares of company stock at a specified price, usually at an advantageous price, for a limited period of time.

Yellow dog contracts

Pledges by workers not to join a labor union.

No solicitation policy

Policy that restricts employees and outsiders from distributing literature or soliciting union membership on company premises.

Salting

Practice in which unions hire and pay people to apply for jobs at certain companies to begin organizing efforts.

Broadbanding

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

Codetermination

Practice whereby union or worker representatives are given positions on a company's board of directors.

Conciliation

Process by which a third party assists union and management negotiators to reach a voluntary settlement.

Mediation

Process by which a third party helps the negotiators reach a settlement.

Ratification

Process by which union members vote to accept the terms of a negotiated labor agreement.

Arbitration

Process that uses a neutral third party to make a decision.

Decertification

Process whereby a union is removed as the representative of a group of employees.

Collective bargaining

Process whereby representatives of management and workers negotiate over wages, hours, and other terms and conditions of employment.

Flexible benefits plan

Program that allows employees to select the benefits they prefer from groups of benefits established by the employer.

Dues check-off clause

Provides for the automatic deduction of union dues from the payroll checks of union members.

Community of interests

Reflects the shared interests of the employees involved

Medicare

Retirement benefits in the form of health insurance funded by the employee and the organization.

Social security

Retirement benefits in the form of payments funded by the employee and the organization.

Retirement plan

Retirement program established and funded by the employer and employees.

Pension plan

Retirement program established and funded by the employer.

Cash balance plan

Retirement program in which benefits are determined on the basis of accumulation of annual company contributions plus interest credited each year.

Defined benefit plan

Retirement program in which employees are promised a pension amount based on age and service.

Defined contribution plan

Retirement program in which the employee and possibly employer makes an annual payment to an employee's pension account.

Extrinsic rewards

Rewards that are external to the employee.

Intrinsic rewards

Rewards that are internal to the employee.

Vesting

Right of employees to receive certain benefits from their pension and retirement plans.

Management rights provisions

Rights reserved so that the employer can manage, direct, and control its business.

Unemployment compensation

Security benefits provided to unemployed people in the form of payments.

Workers' compensation

Security benefits provided to workers who are injured on the job in the form of insurance or a fund that provides money for lost wages, medical and rehabilitation services, and possibly training for different work in exchange for mandatory relinquishment of the employee's right to sue the organization.

Open shop

Shop in which workers are not required to join or pay dues to a union.

Union shop

Shop that requires employees to join the union after they are hired.

Maintenance of membership shop

Shop that requires employees to remain union members for the period of the labor contract or be discharged by the organization.

Agency shop

Shop that requires employees who refuse to join the union to pay fees similar or equal to member dues to the union in return for representation.

Closed shop

Shop that requires individuals to join a union before they can be hired.

Preferential shop

Shop that requires the organizations to give current union members preference in employment decisions.

Lockout

Shutdown of company operations undertaken by management to prevent union members from working.

Adverse selection

Situation in which only higher-risk employees select and use certain benefits.

Perquisites

Special benefits, usually noncash items, for executives.

Grievance procedures

Specific steps used to resolve grievances.

Right-to-work laws

State laws that prohibit requiring employees to join unions as a condition of obtaining or continuing employment.

Whipsaw strike

Strike that occurs against one or several employers in an industry or a multi-employer association to put pressure on the employer(s) and competitors to bargain as a group to negotiate an industry-wide contract to equalize pay across organizations.

Wildcat strike

Strike that occurs during a collective bargaining agreement or contract without the approval of union leadership.

Sympathy strike

Strike that occurs when a union chooses to express support for another union involved in a dispute with the organization by striking with them, even though the union has no disagreement with the organization.

Sit down strike

Strike that occurs when employees occupy the workplace but refuse to work or leave the workplace.

"Slowdown" strike

Strike that occurs when employees perform their tasks below performance standards.

Work-to-rule strike

Strike that occurs when employees perform their tasks exactly as they are required but no better.

Economic strike

Strike that occurs when employees refuse to work to obtain some type of economic concession.

Sick-out strike

Strike that occurs when employees strike by calling in sick.

Intermittent strike

Strike that occurs when employees walk out for a relatively short time and then return to work in hopes of receiving higher wages, more hours, and better benefits.

Unfair labor practice strike

Strike that occurs when union members are protesting illegal employer actions or behaviors.

Jurisdictional strike

Strike that occurs when union members walk out to force the organization to employ them instead of members of another union.

Compensation committee

Subgroup of the board of directors that is composed of directors who are not officers of the firm.

Gainsharing

System of sharing with employees greater-than-expected gains in profits and/or productivity.

Profit sharing

System to distribute a portion of the profits of an organization to employees.

Incentives

Tangible rewards that encourage or motivate action.

Self-service

Technology that allows employees to change their benefits choices, track their benefits balances, and submit questions to HR staff members and external benefits providers.

Discretionary effort

The difference between the maximum amount of effort that can be exerted and the minimum amount of effort needed to be exerted to not be fired.

Range spread

The difference between the maximum and minimum of a pay grade or pay range.

Minimum wage

The lowest wage a company can pay an employee.

Common situs picketing

The picketing of an organization that the union members do not have a primary dispute w/ but is associated with the targeted organization they are in conflict with.

Copayment

The portion of medical expenses paid by the insured individual.

Seniority

Time spent in an organization or on a particular job.

Weingarten rights

Union members' right to demand the presence of a union steward in an investigatory meeting that may result in disciplinary action.

Industrial union

Union that includes many persons working in the same industry or company, regardless of jobs held.

Craft union

Union whose members do one type of work, often using specialized skills and training.

Market pricing

Use of market pay data to identify the relative value of jobs based on what other employers pay for similar jobs.

Collusion

Where management and the union join together in involvement.

Conflict

Where management and the union see each other as enemies.

Strike

Work stoppage in which union members refuse to work in order to put pressure on an employer.

Exclusive remedy doctrine

Workers' compensation benefits are the only benefits injured workers may receive to compensate for a work-related injury.