HR final
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
