mgt 461 final

Rucker plan

A ratio is calculated that expresses the value of production required for each dollar of total wage bill

Unemployment Insurance

A source of income for workers who have lost their jobs through no fault of their own

Minimum Wage vs. "Living Wage"

At local levels it provides a minimum wage tailored to living costs in an area -Because they are so narrowly tailored, it is speculated that their real intention is to reduce any cost savings a municipality might receive from outsourcing

Rating Approaches

Attribute(adjective) -based approaches (e.g., graphic rating scale) ask managers to make judgments about worker characteristics (e.g., cooperative, creativity, etc.) -Advantage: Relies on a variety of performance dimensions instead of one .-Disadvantage: Attributes predict the person's potential to perform well rather than their actual performance.

Average Cash Compensation

Average cash compensation includes average salary level plus variable compensation payments •The variable component will rise and fall in line with business performance

Implementing benefits program

Communicate about the benefits program claims processing cost containment

Challenges to Pay for Performance Programs

Do only what you get paid for unethical behaviors adversely affects cooperation lack of control difficulties in measuring performance job dissatisfaction and stress

Performance-dimension training

Exposes supervisors to the performance dimensions to be used in rating

Child Labor

FLSA restricts hours and conditions of employment for minors -Persons under 18 cannot work in hazardous jobs -Persons under 16 cannot be employed in jobs involving interstate commerce except for nonhazardous work for a parent or guardian

Equal Pay Act (1963) cont.

Factors other than sex-Shift differentials-Temporary assignments-Bona fide training programs-Differences based on ability, training, or experience-Other reasons of "business necessity"• "Reverse" Discrimination-The group penalized is white males

A compa-ratio less than 1 means that, on average, the rates exceed the intended policy.

False

Agency theory argues that employees prefer risky pay as rewards can be greater than a salary.

False

An advantage of group incentives is that it leads to increased line-of-sight.

False

Comparable Worth

If jobs require comparable skill, effort, and responsibility, the pay must be comparable, no matter how dissimilar the job content may be

Tell-and-Listen interview:

Initially, manager communicates the strong & weak points of the job performance •Second part, the employee's feelings about the appraisal are thoroughly explored

Individual Plans

Merit Pay Lump sum bonuses Individual spot awards individual incentive plans

MISC benefits

PTO, LWOP, Child Care, Partner Benefits and Legal insurance

health and medical benefits

general health, health care: cost control strategies, STD, LTD, Dental and Vision

cost control strategies

motivate employees to change their demand for health care via changes in design or admin of policies

Legally required benefits

social security, unemployment compensation, workers compensation

Workers compensation

employees are eligible even if their actions caused the accident covers work-related injuries covered by state and not federal laws

Problem-solving interview:

stimulate growth and development by discussing the challenges, innovations, satisfactions, and dissatisfactions the employee has encountered since the last appraisal interview

two theories of discrimination behavior

-Disparate treatment•The effort/skill/responsibility must be substantially greater in one of the jobs compared -Disparate impact•Practices that have a differential effect on members of protected groups are illegal, unless the differences are work-related

One objective of the overtime provision of FLSA is to share available work by making the hiring of additional workers a less costly option than the scheduling of overtime for current employees.

True

Performance-standard training provides raters with a standard of comparison or frame of reference for making appraisals.

True

Developing Performance Measures

Valid Measures: -Does your performance measures reflect the actual performance of your employees? •If yes, then measures are valid .•If no, then measures are either deficient or contaminated. Clear (Specific) Performance Measurement Standards

LTD

take over when short-term plans expire.»Usually underwritten by insurance, provides 60 to 70 percent of pay for two years, up to life.

Tell-and-Sell interview:

the ability to persuade an employee to change

Title VII of the Civil Rights Act (1964)

•Prohibits discrimination on the basis of sex, race, color, religion, or national origin in any employment condition

Scanlon plans

Designed to lower labor costs without lowering the level of a firm's activity

Four strategies for better measuring performance

(1) Improving the format; (2) Selecting the right raters; (3) Understanding the way raters process information; & (4) training raters to improve rating skills.

Pay Discrimination

-Access discrimination- the denial of particular jobs, promotions, or training opportunities to qualified women or minorities -Valuation discrimination - looks at the pay women and men receive for the jobs they perform

retirement benefits

401k plan ESOP or profit sharing plan income tax deduction for the firm problematic during recruitment of high-talent executives

Prevailing Wage Laws

Davis-Bacon Act -Walsh-Healey Public Contracts Act -Service Contract Act -National Foundation for the Arts and Humanities Act

Guidelines for conducting the feedback meeting

-Separating Evaluation From Development -Targeting Behaviors Or Outcomes Rather Than The Individual -Being Balanced In Your Appraisal -Encouraging Employee Participation

Evaluating or Appraising Employee Performance

1) Customer satisfaction; (2) Employee internal growth and commitment; (3) Operational efficiency in internal processes; & (4) Financial measures.

Administering the Benefits Program

1Who Should be protected or benefited? 2How much choice should employees have among an array of benefits 3how should benefits be financed 4are the benefits legally defensible

COBRA

Consolidated Omnibus Budget Reconciliation Act; law to provide terminated employees or those who lose insurance coverage because of reduced work to be able to buy group insurance for themselves and their families for a limited amount of time.

FMLA

Coverage:-Employers with 50 or more employees •Eligibility:-Must have worked at least 1,250 hours for the employer in the previous year•Qualifying events:-Specified family or medical reasons•Qualifying event coverage:-Unpaid leave up to 12 weeks per year

Fair Labor Standards Act (FLSA)Exempt versus Non-Exempt

Salary basis test:Paid at least $455 per week ($23,660 per annum)ANDJob duties test:Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees

Steps in the Performance Management Process

Step 1: Defining the Job and Performance Criteria-Identifying the Performance Dimensions-Developing Performance Measures •Step 2: Evaluating or Appraising Employee Performance •Step 3: Providing Feedback

PPACA (Patient Protection and Affordable Care Act)

Targets the uninsured with a goal of providing health care coverage to everyone

Employee or Independent Contractor?

Tax law enforced by the Internal Revenue Service (IRS) and the Employee Retirement Income Security Act (ERISA) enforced by the Department of Labor are relevant in classifying the worker as an employee or independent contractor

Performance Dimension

The specific tasks and activities for which employees are responsible .-The Essential Functions of the Job (from the Job Description)

Global Performance Measure

The use of a single score to reflect an individual employee's overall performance.

A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.

True

A problem with incentive pay plans is workers may end up focusing exclusively on behaviors that are rewarded.

True

High performance ratings are nearly always statistically related to high merit increases.

True

If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate.

True

If red circle rates become common throughout an organization, then the design of the ranges and the evaluation of the jobs should be reexamined.

True

In contrast to ranking formats, rating formats require raters to evaluate employees on some absolute standard rather than relative to other employees.

True

The behaviorally anchored rating scales are inexpensive to develop but time-consuming to use.

False

Pay-For-Performance Building Blocks

Does it make sense to use incentives here? Link to your firm's strategic objectives Set complete standards Make sure the program is motivational Be Scientific

Outcome-Based Rating Approaches: Management By Objectives

Emphasizes participatively set goals that are tangible, verifiable, and measurable.-Goal Specificity-Participative Decision Making-An Explicit Time Period-Performance Feedback

Halo error is the error that occurs when an employee is downgraded across all performance dimensions exclusively because of poor performance in one dimension.

False

Scanlon plans are designed to lower labor costs by lowering the level of a firm's activity.

False

Subordinate ratings are more accurate when they are not anonymous.

False

Strategy 2 - Select the Right Raters

Focus on who might conduct the ratings and which of these sources is more likely to be accurate - 360-degree feedback •Assesses employee performance from five points of view: supervisor, peer, self, customer, subordinate •Is flexible •Improves employee understanding and self-awareness •Promotes communication between supervisors and staff •Promotes better performance and results

Rater-error training

Goal is to reduce psychometric errors by familiarizing raters with their existence

HIPPA (Health Insurance Portability and Accountability Act)

Lessens an employer's ability to deny coverage for a preexisting condition -Prohibits discrimination on the basis of health-related status •Stringent privacy provisions added compliance problems for both the HR and information technology people

Minimum Wage

Minimum-wagelegislation is intended to provide an income floor for workers in society's least productive jobs •If state & federal legislation cover same job, the higher rate prevails

Overtime and Hours of Work

Overtime provision of the FLSA requires payment at one-and-a-half times the standard for working more than 40 hours per week

Agency theory

Pay directs and motivates employee performance; employees prefer static wages as opposed to performance-based pay

The Equal Pay Act (1963)

Prohibits wage discrimination on the basis of gender when employees perform equal work in the same establishment.

Performance-standard training

Provides raters with a standard or frame of reference for making appraisals

Pay-for-Performance

an incentive program that rewards employees for meeting specific, individual goals

Salary Level: Top Down

budgeting begins with an estimate from top management of the pay increase budget for the entire organization

Social Security

provides a foundation of basic security for us workers and their families -old age benefits -dependents of retired or disable workers -surviving family members of a deceased worker -lump-sum death payments issue- number of retired workers is rising without a corresponding increase in the number of contributors to offset the cost (money comes from contributions made by employees, employers and the self-employed during working years.)