HRTM 344 Final Exam

culture shock

disillusionment and discomfort that occur during the process of adjusting to a new culture

associated union membership

alternative form of union membership in which members receive discounts on insurance and credit cards rather than representation in collective bargaining

employee stock ownership plan (ESOP)

an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust

union steward

an employee elected by union members to represent them in ensuring that the terms of the labor contract are enforced

family and medical leave act (FMLA)

federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty

employee retirement income security act (ERISA)

federal law that increased the responsibility a pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the Pension Benefit Guarantee Corporation

consolidated omnibus budget reconciliation act (COBRA)

federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff, reduction in hours, or the employee's death

national labor relations act (NLRA)

federal law that supports collective bargaining and sets out the rights of employees to form unions

labor relations

field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflict and seek win-win solutions to disagreements

balance sheet approach

for determining expatriate compensation adjusts the manager's compensation so that it gives the manager the same standard of living in the home country plus extra pay for the inconvenience of locating overseas

incentive pay

forms of pay linked to an employee's performance as an individual, group member, or organization member

scanlon plan

gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard

validation

giving expatriate recognition for the overseas service when this person returns home

gainsharing

group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each gain to employees

vesting rights

guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer

patient protection and affordable care act

health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit

length of service

in the US, the amount of sick leave given to employees is often based on...

commissions

incentive pay calculated as a percentage of sales

profit sharing

incentive pay in which payments are a percentage of the organizations profits and do not become part of the employees base salary

straight piecework plan

incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces

differential piece rates

incentive pay in which the piece rate is higher when a greater amount is produced

short-term incentives

include bonuses based on the year's profits, return on investment, or other measures related to the organization's goals

long-term incentives

include stock options and stock purchase plans

right-to-work laws

state laws that make union shops, maintenance of membership, and agency shops illegal

workers' compensation

state programs that provide benefits to workers who suffer work-related injuries or illnesses, or their survivors

long-term disability insurance

insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life

short-term disability insurance

insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less

unions

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

defined benefit plan

pension plan that guarantees a specified level of retirement income

low uncertainty avoidance

people tend to take each day as it comes

individualism

people tend to think and act as individuals rather than as members of a group; expected to stand on their own two feet rather than be protected by a group

collectivism

people think of themselves mainly as group members; expected to devote themselves to the interests of the community, and the community is expected to protect them when they are in trouble

small power distance

people try to eliminate inequalities

short-term orientation

promote respect for past tradition and for fulfilling social obligations in the present

preparation for the return home

providing information about the employee's community and home-country workplace

craft union

labor union whose members all have a particular skill or occupation

industrial union

labor union whose members are linked by their work in a particular industry

preparation for departure

language instruction and an orientation to the foreign country's culture

high uncertainty avoidance

refers to a strong cultural preference for structured situations; rely heavily on religion, law, and technology to give them a degree of security and clear rules about how to behave; trainees expect a formal instructional environment

summary plan description

report that describes a pension plan's funding, eligible requirements, risks, and other details

contributory plan

retirement plan funded by contributions from the employer and employee

noncontributory plan

retirement plan funded entirely by contributions from the employer

cash balance plan

retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate

defined contribution plan

retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account

stock options

rights to buy a certain number of shares of stock at a specified price

national labor relations board (NLRB)

federal government agency that enforces the NLRA by conducting and certifying representation elections and investigating unfair labor practices

collective bargaining

negotiation between union representatives and management representatives to arrive at a contract defining conditions of employment for the term of the contract and to administer that contract

pension benefit guarantee corporation (PBGC)

federal agency that insures retirement benefits and guarantees retirees a basic benefit if the employer experiences financial difficulties

gainsharing example

Brenden, the HR manager at Baretta & Co, is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Brenden should apply the incentive scheme of...

consent election

House Factory Inc. agrees to allow a union to conduct an organizing campaign. Both parties decide that they will come to a settlement on the time and place of the campaign. In this scenario, which of the following types of elections best describes this type of settlement?

femininity example

Sarah works at an organization that places high emphasis on relationships, service, care for the weak, and preserving the environment. Sarah's workplace would be viewed as one that places emphasis on the qualities that are considered high in...

merit pay example

Songreen Inc, a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which of the following payment plans if exemplified in this scenario?

health maintenance organization

a health care plan that requires patients to receive their medical care from the HMO's health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis; covers all the patient's visits and procedures, without an additional payment from the patient

cafeteria style plans

a benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want

strike

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

balanced scorecard

a combination of performance measures directed toward the company's long and short term goals and used as the basis for awarding incentive pay

host country

a country (other than the parent country) in which an organization operates a facility

third country

a country that is neither the parent country nor the host country of an employer

femininity

a culture that places a high value on relationships, service, care for the weak, and preserving the environment

masculinity

a culture that values achievement, money making, assertiveness, and competition

employment insurance

a federally mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment

preferred provider organization

a health care plan that contracts with health care professionals to provide services at a reduced fee and gives patients financial incentives to use network providers

employee wellness program

a set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks

third-country national

an employee that is a citizen of one country, working in another country for a company headquartered in a third country; Adrienna works with Arnold and Gunther in Berlin. She's a citizen of Italy

host-country national

an employee who is a citizen of a country in which an organization's branch or plant is located; Arnold works with Gunther in the Berlin office. Gunther is a citizen of Germany

lockout

an employer's exclusion of workers from a workplace until they meet certain conditions

standard hour plan

an incentive plan that pays workers extra for work done in less than a preset "standard time"

multinational company

an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs

international organization

an organization that sets up one or a few facilities in one or a few foreign countries

corporate campaigns

bringing public, financial, or political pressure on employers during union organization and contract negotiation

employee benefits

compensation in forms other than cash

power distance

concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal

mediation

conflict resolution procedure in which a mediator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution

arbitration

conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement

checkoff provision

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

uncertainty avoidance

describes how cultures handle the fact that the future is unpredictable

parent-country national

employee is born and raised in the country of the headquarters; Denise works with Arnold. While Arnold is a citizen of the United States, he has taken an assignment with the company at its foreign subsidiary in Berlin, Germany

flexible spending account

employee-controlled pretax earnings set aside to pay for certain eligible expenses, such as health care expenses, during the same year

expatriates

employees assigned to work in another country

merit pay

system of linking pay increases to ratings on performance appraisals

parent country

the country in which an organization's headquarters is located

large power distance

the culture defines it as normal to maintain large differences in power

international labor relations

the day-to-day decisions about these relations are usually handled by each foreign subsidiary in companies that operate across borders; on an international scale, involve differences in laws, attitudes, and economic systems, as well as differences in negotiation styles

social security

the federal old age, survivors, disability, and health insurance program, which combines old age insurance, survivor's insurance, disability insurance, hospital insurance, and supplementary medical insurance for the elderly

experience rating

the number of employees a company has laid off in the past and the cost of providing them with unemployment benefits

stipulation election

the parties cannot agree on all of these terms, so the NLRB dictates the time and place, ballot choices, and method of determining eligibility

grievance procedure

the process for resolving union-management conflicts over interpretation or violation of a collective bargaining agreement

repatriation

the process of preparing expatriates to return home from a forgein assignment

fact finder

third party collective bargaining who reports the reasons for a dispute, the views and arguments of both sides, and possibly a recommended settlement, which the parties may decline

cross-cultural preparation

training to prepare employees and their family members for an assignment in a foreign country

transnational HRM system

type of HRM system that makes decisions from a global perspective, includes managers from many countries, and is based on ideas contributed by people representing a variety of cultures

union shop

union security arrangement that requires employees to join the union within a certain amount of time after beginning employment

agency shop

union security arrangement that requires the payment of union dues but not union membership

closed shop

union security arrangement under which a person must be a union member before being hired; illegal for those covered by the national labor relations act

maintenance of membership

union security rules not requiring union membership but requiring that employees who join the union remain members for a certain period of time

long-term orientation

value saving and persistence, which tend to pay off in the future

piecework rate

wage based on the amount workers produce

individual's performance rating and their compa-ratio

what two factors are merit pay system decisions are based on?