HR Quiz #3

general trends in executive/managerial PFP, including short-term and long-term programs

short term: year or less (mainly cash bonuses) long term: more than a year (stock options)

Employee relations issues concerning forces internal to organizations

surveys, employee handbooks, progressive discipline, and grievances Discipline: -verbal -written -put into supervisors file -put into HR file -may execute warning

Steps in designing a PFP system

What will be rewarded? Who will be included? At what level will rewards be made? What will be the rewards? How will I know if it works? How will I measure achievement?

Socialization

What's at stake? New employee satisfaction and commitment Work group satisfaction and commitment Effective early performance Other start-up costs decreased Likelihood of employee remaining Effective socialization should ... Provide information Encourage learning about work group Encourage questions Consist of task and social elements Socialization ends when you've resolved role demands, mastered task, and adjusted to group norms and values

characteristics of effective Pay-for-Performance (PFP) programs and the related individual factors

Worker must value outcomes Outcomes valued relative to other rewards Desired performance must be measurable Worker must be able to control output or quality Worker must be capable of increasing output or quality Worker must believe that increased efforts will result in rewards "Sufficient" reward size Performance measures must be aligned with strategic goals

Ethics Programs

(employee codes of conduct) formally written programs designed to ensure that honest fair ethical respectful actions on parts of employees

External Equity

-Conducting a wage survey: Who to survey, who will survey, what info do we want? -Choosing a pay policy: Lead (ahead), lag (behind), match (as close to market average), hybrid -Basis for market comparison: Benchmark jobs, job families, as many as we can, good sampling -Analyzing market data, reconciling internal with external considerations

Basic provision of Fair Labor Standards Act

-Minimum Wage, Overtime work (in excess of 40 hours in one week) -Child labor: 18 year olds are able to work unencumbered

Know what performance-based pay is, general trends, why it's important to reward performance, and research results relating to Pay-for-Performance

-any pay system in which rewards are based on performance 44% use PFP everywhere 90%+ say their PFP doesn't work Relation to reward performance: -Employee attraction/retention -Motivating, directing, energizing performance -Cost considerations, particularly in services Research results: -Process matters -Must be tailored to specific situation -Good employer-employee relations important -Must be based on firm strategy -Must be perceived as attainable and equitable -Rewards must be "worthwhile"

merit pay plans and why they are a problem

-permanent addition to salary based on performance appraisal (can be subjective)

gainsharing plans, how they work, and the characteristics of successful gainsharing plans

-plans that are structured to reduce amount of labor used to get task done or increase output (do better, do more, do more effectively) -Most gainsharing plans pay out monthly

Job evaluation & methods for evaluating jobs

-systematic, rational assessment of jobs within an organization to determine their relative worth -Point factor plan: most widely used -Ranking and classification also used

Know the general principles about and types of group incentive plans

-teams/group pay contingent upon group performance/outcomes

Know the definition of "compensation" and "intrinsic compensation." Know the components of cash compensation

Compensation: Cash/Employee benefits -Direct = Cash (70% of expenditures are on cash) -Indirect = benefits -Merit Pay: pay for doing a good job -Seniority Pay: pay for staying/longevity pay -Incentive Pay: commissions, goals established and achieved -COLA: Cost of living adjustment -COBRA: individuals right to continue employer's health insurance Intrinsic compensation: physiological benefits

Things organizational management can do to create/encourage a safe, healthy environment

1. Employee training: Conduct safety training Hazards at work Safety rules, regulations Safe, unsafe work behaviors Expanded training for supervisors OSHA's training standards 2. Incentive & award programs: Competition across units Competition against own history Competition using management targets 3. Safety rules and regulations: Employee handbooks Safety rule books Enforcement is key 4. Personnel selection (older people get hurt more than young people) Stating, discussing safety policies, commitment "Accident prone-ness"? Trend towards teams, decentralized decision-making may help

5 categories of employee benefit plans and which types of programs fit within each category

1. Government mandated programs 2. Protection programs (health care, survivor plans, disability plans) 3. Long term capital accumulation (pension, profit-sharing, thrift/savings) 4. Time off pay (vacation, sick, personal, PTO Banks) 5. Employee services and allowances (tuition reimbursement, housing relocation, child family care, employee recognition)

Three main goals of pay systems and the tools and techniques relating to each goal

1. Internal consistency (relationship of salaries in organizations) -More complex jobs and strategically important jobs should be paid more than those who don't have those 2. External: Market place, how jobs are structured in other places in comparison 3. Recognizing contribution: -on what basis will we pay premiums

3 assumptions and the 3 management theories discussed in class that underlie PFP

Assumptions: -People vary in contribution -The variance matters -To attract, retain the best performers, companies must pay for performance Theories: -Expectancy theory: before we take something on, we ask (is it doable, will something happen after I do it successfully, do I value what I am going to get) motivation theory -Goal setting theory: motivation is created/enhance by SMART goals (specific, measurable, achievable, realistic, time value) motivation theory -Equity theory: people want to work for an organization that treats them fairly (equity theory)

Effects of OSHA

Effects of OSHA Major emphasis on health, safety Enforcement, fines increased dramatically Reduced accidents, deaths, injuries Trend in non-reporting?

characteristics of effective Pay-for-Performance (PFP) programs and the related organizational factors

Employer must have culture that supports PFP system Employer must have competent supervisors (capable of measuring performance and using the system) Employer must have a good performance appraisal system Employer must have adequate funding for pay increases Employer must have a fair process Employer must provide training for supervisors and employees on the PFP system Employers must continually evaluate the process and make improvements

Ongoing employee relations issues concerning external forces

Employment at will Whistle blowing Military rights -Uniformed Services Employment & Reemployment Rights Act (USERRA)

Workers Compensation

Federally-mandated insurance program No-fault assumption Benefits Wages and "partial wage replacement" Medical costs Death benefits Relation to ADA Employers may contest claim ... Illness/injury not result of work Employee capable of performing job "Fraudulent Claim" in general "Employee's willful intention to hurt oneself" Employee under influence of drugs or alcohol when accident occurred Employees may still sue ... Employer's "intentional actions:" Knew (and ignored) the danger, mislead employees or concealed truth "Retaliation for filing a workers' compensation claim" Coverage through ... Private insurance companies; State funded programs; Self-insured programs

What are incentive plans and how do they differ from merit pay?

Incentive pay: periodic lump-sum awards that are paid for some countable result (should be established in advance) -works best went performance is measurable and at some level objective -employees need to have level of control as to whether they can do this

Employee vs. independent contractor

Independent contractors: somebody who works for you but isn't employee (someone who comes in to do a particular job for you) -employees are entitled to programs such as 401k, etc.

Organizational Justice

Organizational justice: people feel they are being treating appropriately, what they were hoping before they began working Distributive vs. procedural: occurs at organizational level Distributive: equity and allocation of rewards and punishments Procedural: are there fair rules and polices, who makes the policies, how much do they know about the organization, is it fair Interpersonal vs. information (supervisor level) Interpersonal: am I treated fairly by my supervisor Informational: when I ask a question do I get a complete accurate correct answer? Effects on attitudes and behaviors: above 4 things affect this trickle down effect, based on above

Why does pay for performance fail?

Poor perceived connection between performance and pay PFP pay too low Measurement problems Faulty performance appraisal Union resistance to PFP Poor connection between outcomes rewarded in PFP programs and long-term performance measures, objectives of organization Supervisors who do not take PFP process seriously

contemporary trends in workplace health and safety

Repetitive stress injuries (RSIs) AIDS in the workplace Violence in the workplace Occupational stress and burnout

General trends related to workers health and safety

Safest countries to work: Sweden, Finland, U.K., then U.S. Some countries require safety committees with employee representatives: Netherlands, France, Denmark, Luxembourg Jobs with highest fatalities: Heavy truck drivers, Commercial fishing, loggers, iron workers, refuse collectors, power line workers, roofers Industries with highest fatalities: Agriculture, forestry, fishing & hunting; mining Industries with highest non-fatal injuries: Manufacturing, Health care, Retail Organizations with highest injury rates: Moderate-sized (50-100 employees)

General Provisions of OSHA

Sets standards Record-keeping and reporting requirements Record-keeping forms Workplace inspections Citations and penalties Provides services Protects employee OSHA-related rights

Flexible work arrangements

Telecommuting (working from elsewhere) Flextime (flexibility about kinds of hours worked) "Permanent" part-timers Compressed work weeks

Voluntary and involuntary ways employees leave (or exit) an organization

Termination/Involuntary Turnover Resignation/Voluntary Turnover Downsizing and layoffs -reorganization involving a large organization /-lack of work, last in first out / both about reducing size of workforce Retirement: workers who have fulfilled their years of service Severance: 2 weeks of pay for every year of service -gesture of good will Uncontrollable resignation: something an employee feels they have to do and cant stay with organization (spouse relocation, family crisis, etc.)