HR 8,9,10
What are the (six) career paths in the text?
1.Traditional career path 2.Network career path 3.Lateral skill path 4.dual-career path 5.Adding value to your career 6.Demotion 7.Free agent (be your own boss)
What type of retirement plan is are 401(k)? What type of retirement plan is a pension?
401k = Defined Contribution Plan Pension = Defined Benefit Plan
In 2027, what will the age be for receiving Social Security Benefits?
67 years old
What factors have resulted in high health care costs?
Aging population, growing demand for medical care, increasing expensive technology, inefficient administrative process
What are the different types of T&D methods? Under which circumstances is each most effective?
Classroom method-important in in short time e-learning-decreased costs,convince,flexibility case study-sharpen critical thinking skills behavior modeling and tweeting- showing performance Role playing-learn by doing Training games-encourage learner involvement in-basket training-act on information provided on-the-job training-transfer knowledge from highly skilled apprenticeship training-classroom +On job training team training-orchestrate work to complete task(s)
How do coaching and mentoring differ?
Coaching is task oriented. The focus is on concrete issues, such as managing more effectively, speaking more articulately, and learning how to think strategically. This requires a content expert (coach) who is capable of teaching the coachee how to develop these skills. Mentoring is relationship oriented.
What are the different types of company-wide incentive plans and the advantage of each (profit sharing -various types), stock plan-various types)?
Current profit sharing-provides payment to employees in cash or stock as soon as profits have been determined Deferred profit sharing-involve placing company contributions in a irrevocable trust, normally invested in securities and given at retirement,death,or termination combination plans-permit employees to receive payment of part of their share of profits on a current basis while deferring payment of part of their share vesting-an employees acquired nonforfeitable rights to pension benefits company stock-the total equity or worth of the company company stock shares-equity segments of equal value, which increases the number of stock shares held stock options-incentive plan in which employees can buy a specified amount of stock in their company in the future at or below the current market price
What is a customized benefit plan?
Customized benefit plans permit flexibility by allowing each employee to determine the components that best satisfy his or her particular needs. Choose b/w taxable cash and benefits 20 years ago, firms offered uniform package that reflected typical employee
What is the difference between a defined benefit, defined contribution, and hybrid retirement plans?
Defined Benefit Plans - a formal retirement plan that provides the participant with a fixed benefit on retirement. (I.e. Pension Plans) Employer puts money for the rest of life Defined Contribution Plans - is a retirement plan that requires specific contributions by an employer to a retirement or savings fund established for the employee. (I.e. 401k) Stop putting money into account once you stop working. Hybrid Retirement Plans - Mix - Cash balance Plan - plan with elements of both defined benefit and defined contribution plan. More Risk on individual in 401k. More risk on Employer in pension. With this hybrid plan, it levels out the risk
What do the 5 types of specialized insurance discussed in the text cover?
Dental Plans, Vision Plans, Prescription Drug Plans, Mental Health Plans, and Substance Abuse Plan.
How does the economy impact compensation decisions?
Depressed economy generally increases the labor supply, this serves to lower the market rate A booming economy results in greater competition for workers and the price of labor is driven upward
What is direct financial compensation?
Direct compensation includes basic annual salaries or hourly wages paid to workers in return for their services to the company account. It refers to the monetary benefits received for work done for a specific duration like an hour, a week, a month or a year.
What is disability insurance? Survivor's benefits?
Disability insurance- is the industry name for a plan that provides for periodic payments of benefits when a disabled insured is unable to work. The insurance product is designed to replace anywhere from 45 to 65% of your gross income on a tax-free basis should illness keep you from earning an income in your occupation Survivor's benefits- the benefit amount received from Social Security by the survivor will depend on three things: 1) whether the deceased spouse had begun to collect benefits prior to his death; 2) the time at which the deceased spouse first began to collect his Social Security benefits; and 3) the age of the
When is telecommuting appropriate?
Telecommuting is a management strategy for, among other things, improving organizational effectiveness. It is a process that should be encouraged based upon its ability to increase organizational productivity. That is, telecommuting should be implemented as a policy to improve the performance of employees, and not one that is a "benefit" to a particular group. It should be utilized to enhance future job performance and not to reward past accomplishments. This is not meant to suggest that telecommuting is not a tremendous benefit to employees
Davis-Bacon Act of 1931
The Davis-Bacon Act, passed by Congress in 1931, re-quires private contractors to pay "prevailing wages" to employees on all federally funded construction projects over $2000. Most often, the "prevailing wage" corresponds directly to the union wage.
Equal Pay Act of 1963
The Equal Pay Act of 1963 is a United States federal law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex (see Gender pay gap). It was signed into law on June 10, 1963, by John F. Kennedy as part of his New Frontier Program.
What is a gainsharing plan? Scanlon plan?
These plans combine leadership, total workforce education, and widespread employee participation with a reward system linked to group and/or organization performance. The Scanlon plan is a gain sharing program in which employees share in pre-established cost savings, based upon employee effort. Gainsharing is a system of management used by a business to increase profitability by motivating employees to improve their performance through involvement and participation. As their performance improves, employees share financially in the gain (improvement).
What are the characteristics of consumer driven health care plans?
This approach may enable employers to lower the cost of insurance premiums by selecting plans with higher employee deductibles Involves high-deductible insurance coverage combined with a tax-advantaged account like a health savings account (HSA), health reimbursement account (HRA), and flexible spending account (FSA)
What is a flextime? Compressed work week? Job sharing? Two-In-a Box? Part time work?
flextime- system of working a set number of hours with the starting and finishing times chosen within agreed limits by the employee. Compressed work week-allows an employee to work a traditional 35-40 hour workweek in less than the traditional number of workdays. Many compressed work schedule options may be negotiated. For example, a full-time employee scheduled for 40 hours per week could work four 10-hour days instead of five 8-hour days Job sharing- (of two part-time employees) jointly do a full-time job, sharing the remuneration. Two in a box- Organizations and teams look at "co-leading" or "two in a box" strategy, where the Organization gets more than 200% of commitment for that job responsibility
What are the different categories of online higher ed (hybrid, synchronized, asynchronous)?
hybrid- some online and some traditional university setting synchronized-online portal system but still report to most classes asynchronous-series of assignments that need to be completed in a certain time frame
What is Hamburger University?
is a 130,000-square-foot (12,000 m2) training facility of McDonald's, located in Oak Brook, Illinois, a western suburb of Chicago. This corporate university was designed to instruct personnel employed by McDonald's in the various aspects of restaurant management. Corporate university.
What is human capital theory?
is a term popularized by Gary Becker, an economist from the University of Chicago, and Jacob Mincer that refers to the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.
What is the Myer's Briggs Type Indicator?
is an introspective self-report questionnaire designed to indicate psychological preferences in how people perceive the world and make decisions. was constructed by Katharine Cook Briggs and her daughter Isabel Briggs Myers.
What is management development? What skills are needed as managers reach higher levels in the organization?
is the structured process by which managers enhance their skills, competencies and/or knowledge, via formal or informal learning methods, to the benefit of both individual and organisational performance. -mentoring, coaching, reverse mentoring
What is blended training?
it usually refers to a mixing of traditional face-to-face classroom facilitation with computer-based modules — usually self-paced online training.
How does training differ from development?
^
What is meant by broadbanding? Under what circumstances could broadbanding be beneficial?
broadbanding- is a job grading structure that falls between using spot salaries vs. many job grades to determine what to pay particular positions and incumbents within those positions Flat organizations that are flexible, have a higher tolerance for ambiguity, and encourage lateral or cross functional movement would be good candidates for broadbanding
What is the labor market?
the supply of available workers in relation to available work. "a diverse workforce in a tight labor market"
What is reverse mentoring? What is it primarily used to accomplish?
turns the traditional hierarchical approach to mentoring on its head. Rather than having a senior player take a less experienced player "under their wing", reverse mentoring relationships place the more senior person as the primary learner and emphasize the experience of the junior person. -The objective of to is primarily to enable leaders and senior managers to stay in touch with their organisations and the outside world. But the advantages go both ways as more junior personnel have an opportunity to understand and be heard by more senior and experienced people.
What are the primary advantages of vestibule, video media, simulators, and social networking?
vestibule-The workers are trained as if on the job, but it does not interfere with the more vital task of production. video media-flexibility and cost effective simulators-specific realistic lessons on proper operator technique, machine controls, and safe operation social networking-rapidly growing and used informally to gather info when needed/desired
What determines an appropriate pay mix?
works in conjunction with a plan's payout curve to determine leverage — the rate of target cash compensation earned at various levels of performance. High leverage provides sales team members with an opportunity for accelerated pay outcomes as performance exceeds target
Legislation to know:
•
What are different types of legally required benefits exist? Who pays for each?
•
What career planning approaches are possible and the benefits of each?
•
What is a compensation policy? What are the three different compensation policies and their characteristics? What are the consequences associated with each policy?
compensation policy-policies that provide general guidelines for making compensation decisions 1.Market lead-pay higher wages and salaries to attract high quality,productive, employees and thus achieve lower per unit labor costs 2.Market match-pay what most employers pay for same job 3.Market Lag-Pay below market rate because firms poor financial condition or belief that it does not require highly capable employees
Cross training purpose?
educates team members on other team members jobs so that they could fill in when they are absent
What are the components of direct financial compensation?
employee base pay,base pay,cost of living adjustments,seniority pay,performance based pay,person focused pay
What are the steps in the T&D process (Fig 8-1 on page 192)?
1. Determine specific T&D needs 2. Establish specific T&D objectives 3. Select T&D method(s) and delivery system(s) 4. Implement T&D programs 5. Evaluate T&D programs
Dodd-Frank Act of 2010
- will impose a comprehensive and far-reaching regulatory regime on derivatives and market participants. -look up more info
What 3 broad categories of discretionary benefits?
-Health care -Retirement Plans -Life insurance/ disability insuraance
What career development methods exist?
-Manager/employee self-service -Discussion with knowledgeable individuals -Company material -Performance appraisal system -Workshops
What is Organizational development (OD)? What three types of OD interventions covered in the text? What are likely outcomes associated with each?
-the study of successful organizational change and performance --create working enviroments that lead to better working employees --employees meet with supervisors to disscuss problems, investigate causes and recommend solutions -conscious effort to develop effective work groups and cooperative skills throughout the organization
------------------------------------------------------------------------------------
Chapter 8: Training and Development (T&D)
What is a two-tier wage system?
A system is a type of payroll system in which one group of workers receives lower wages and/or employee benefits than another.
What is the primary purpose of training?
Activities designed to provide learners with the knowledge and skills needed for the job
------------------------------------------------------------------------------------
Chapter 9: Direct Financial Compensation
What is the difference between HSAs, HRAs & FSAs?
All under Consumer-Driven Health Care Plans HSA - Health Savings Account - Tax free health spending & Savings account. Available to individuals and families who have qualified high-deductible health insurance policies as determined by IRS. Maximum of $6,550 a year in pretax account. HRA - Health Reimbursement Accounts - allow an employer to set aside funds to reimburse medical expenses paid by participating employees. No limit on employer's contribution and can be rolled over from year to year. FSA - Flexible Spending Account - Health Benefit plan established by employers that allows employees to deposit a certain portion of their salary(BEFORE paying income taxes) into an account that can be used for eligible expenses
What different types of employee services may be offered by an employer?
Child care Educational assistance Food service/subsidized cafeterias Scholarship for dependents Relocation benefits Domestic partner benefits and same-sex marriage Premium pay
What are the components of a total compensation program?
Base pay Bonuses, including any onetime bonuses for that year Value of vacation/PTO/sick days, and any other paid leave Note: Employers should be careful not to double count this item if it's already counted in the base pay figure. If this is the case, it might be better to quantify the PTO benefit, but not assign it a monetary value. Value of employer-paid portions of insurance plan premiums, such as: Health insurance Dental insurance Vision insurance Life insurance Short-term disability insurance Long-term disability insurance Employer contributions to the employee's retirement plan, such as a 401(k) or pension Stock options Value of Employee Assistance Program, on a per-employee basis Annual usage value of an employee's company car (and associated benefits, such as maintenance costs) OR value of the employee's use of a shared company vehicle Value of any other benefits offered, such as: Fitness club membership Cell phone service On-site child care Free or discounted public transportation or parking Tuition assistance Home office benefits, such as Internet service Company-sponsored discounts Per diem payments when traveling
What are the five main components to executive compensation packages?
Base salary Bonuses and performance-based pay Stock option plans Perquisites (perks) Severance packages
------------------------------------------------------------------------------------
Chapter 10: Indirect Financial Compensation
Know: ERISA of 1974, COBRA of 1985, OWBOA of 1990, HIPPA of 1996, FMLA of 1993, Pension Protection Act, Patient Protection and Affordable Care-Act of 2010
ERISA of 1974 - (The Employee Retirement Income Security Act) - strengthens existing and future retirement programs. Intended to ensure when employees retire they receive deserved pensions. Does not FORCE the employers to create employee retirement plans. COBRA of 1985 - (The Consolidated Omnibus Budget Reconciliation Act) was enacted to give employees the opportunity to temporarily continue their coverage, which they would otherwise lose because of termination or layoff. Former employee may keep coverage for up to 18 months after loss of job. Individual pays for insurance OWBOA of 1990 - The Older Workers Benefit Protection Act of 1990, an amendment to the Age Discrimination in Employment Act, prohibits discrimination in the administration of benefits on the basis of age, but also permits early retirement incentive plans as long as they are voluntary. Employers must offer benefits to older workers that are equal to or greater than the benefits given to younger workers. HIPPA of 1996 - The Health Insurance Portability and Accountability Act - provides protection for Americans who move from one job to another, who are self-employed, or who have preexisting medical conditions. The prime objective of this legislation is to make health insurance portable and continuous for employees FMLA of 1993 - The Family and Medical Leave Act applies to private employers with 50 or more employees and to all governmental employers, regardless of the number of employees. FMLA provides employees up to 12 weeks a year of unpaid leave in specified situations: Caring for newborn, ill child, parent or spouse or employees own serious health condition. Pension Protection Act of 2006 (PPA) - Strengthens funding rules for defined benefit pension plans. The act seeks to ensure that employers make greater contributions to their pension funds, ensuring pension fund solvency and avoiding a potential multibillion-dollar taxpayer bailout Patient Protection and Affordable Care-Act of 2010 - Often called "Health Care Reform Bill" or "Obama Care": Everyone required to have insurance by 2014 Children can stay on parents' policy to age 26 Insurance companies cannot cancel a policy if the insured gets sick A person cannot be denied insurance simply because of a preexisting condition. No max limit on insurance coverage
What are employee benefits?
Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, or perks) include various types of non-wage compensation provided to employees in addition to their normal wages or salaries
what is salary compensation and under what circumstances does it occur?
Employee compensation: Salary, wages, incentives and commissions. 06 Dec 2009. Compensation describes the cash rewards paid to employees in exchange for the services they provide. It may include base salary, wages, incentives and/or commission. Occurs when less experienced employees are paid as much as or more than employees who have been with the organization a long time due to a gradual increase in starting salaries and limited salary adjustment for long-term employees
Fair Labor Standards Act of 1938, as Amended (What is the difference between exempt and nonexempt employees? What are the four types of exempt employees?)
Employees who qualify as "exempt" are exempt from overtime regulations (and minimum wage laws), whereas "nonexempt" employees must be paid for every hour of overtime they work. The federal Fair Labor Standards Act (FLSA) and the laws of the 50 states regulate what constitutes "overtime." Exempt employees: Administrative,Professional,Computer Employee,Highly Compensated
What characteristics are associated with ranking, classification, factor comparison, and point methods? How do they differ from one another? Which is most popular?
F this question
What are the differences between Fee-for-Service Plans, Managed Care Plans, Specialized Insurance Plans, and Consumer drive plans?
Fee-for-Service Plans - provide protection against health care expenses in the form of a cash benefit paid to the insured or directly to the health care provider after the employee has received health care services. (3 types of expenses: hospital, surgical, and physician charges. These plans pay benefits on a reimbursement basis Managed Care Plans - Plans that emphasize cost control by limiting an employee's choice of doctors and hospitals. Specialized Insurance Plans - Employers often use separate insurance plans to provide specific kinds of benefits and are often referred to as specialized insurance plans. Consumer Drive Plans - refers to the objective of helping companies maintain control over costs while also enabling employees to make greater choices about health care.
What is the most expensive item in an employee benefits package?
Health Care
What are 2 common forms of managed care plans?
Health Maintenance Organizations (HMOs) - Cover all services for a fixed fee, but exercise control over which doctors and health facilities member may use. Provide prepaid benefits. Preferred Provider Organizations (PPOs) - managed-care health organizations in which incentives are provided to members to use services within the system; out-of-network providers may be used at greater cost.
What are the four categories of voluntary benefits?
Health, Wealth accumulation, Security, and unique personal interest or requirements
Be able to determine factor point values when provided a job evaluation worksheet.
In class worksheet
What is orientation? What are its basic purposes?
Initial T&D effort for new employees that informs them about the company, the job, and the work group Purpose to inform on: employment situation, company policies and rules, compensation, corporate culture, team membership, employee development, and socialization.
What is the intent of unemployment payments?
Is to provide an unemployed worker time to find a new job equivalent to the one lost without suffering financial distress
What is the purpose of development?
Learning that goes beyond today's job and has more long term focus. Also helps employees keep pace with the organization as it changes and grows.
What metrics exist for evaluating T&D?
Participant reaction Extent of learning Behavioral change Organizational results Benchmarking
What types of premium pay exist?
Premium pay is additional pay provided to employees for working certain types of hours or under certain types of conditions. Hazardous Pay - I.e. Window washer on a skyscraper in NYC Flight Pay/Combat Pay - (I.e. Military pilot)
The U.S. federal government's General Schedule represents what type of pay program?
Seniority pay
What are the different strategies relating to Sales Representative Compensation? Under what circumstances would each be appropriate?
Salary Commission Part-Salary, Part-Commission
What are the different types of group incentive plans and the advantage of each?
Scanlon, Multicost Scanlon, Rucker, Gain sharing
What factors influence training and development?
Top management support Shortage of skilled workers Technological advances Global complexity Learning styles Other HR functions
What are stock option plans designed to accomplish?
Traditionally, stock option plans have been used as a way for companies to reward top management and "key" employees and link their interests with those of the company and other shareholders. More and more companies, however, now consider all of their employees as "key."
What are the different types of paid time off? What are the advantages of a PTO bank?
Vacation - I know Sick Pay - Many firms allocate a certain number of paid sick days to employees each year. Paid time-off banks - Certain number of days off provided each year that employees can use for ANY purpose. Sabbatical - See more in the Private Sector. Help reduce turnover and prevent burnout Various Others - Jury Duty, Civic Duties, handle personal affairs, National guard
What is a job structure? Job evaluation? What is the purpose of a job evaluation?
job structure- is the basic overall hierarchy that a business uses to manage the reporting structure for each of the positions within the company. There are four basic types of job structures: departmental, functional, geographical and business unit. Job evaluation-is the systematic process for assessing the relative worth of jobs within an organization. A comprehensive analysis of each position's tasks, responsibilities, knowledge, and skill requirements is used to assess the value to the employer of the job's content and provide an internal ranking of the jobs. What is the purpose of a job evaluation- is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.
What are the various approaches to performance based pay
merit pay-pay increases added to employees base pay based on their level of performance merit bonuses-one time annual financial award, based on productivity that is not added to base pay incentive pay-compensation other than base wages or salaries that fluctuates according to employees attainment of some standard person-focused pay-compensation for developing the flexibility,knowledge,skills to perform a number of jobs effectively
Historically, what factor has had the most significant influence on careers?
not sure but i think mentoring and reverse mentoring
On which levels may T&D needs be determined by conducting analyses?
organization, task, person
What is pay structure? Pay grade? Wage curve? Pay range? (Be familiar with Fig. 9-7, page 244)
pay structure-A pay structure is a collection of pay grades, levels or bands which links related jobs within a hierarchy or series. It provides a framework to implement of reward strategies and policies within an organisation. Pay grade-a grade or level on a pay scale. "workers are to be balloted by the union for a proposed strike over the secretaries' pay grades" Wage curve-A graph that illustrates and compares the local rate of unemployment in a geographical region on a horizontal axis, and the local wage rate of that same region, on a vertical axis Pay range-Salary range is the range of pay established by employers to pay to employees performing a particular job or function. Salary range generally has a minimum pay rate, a maximum pay rate, and a series of mid-range opportunities for pay increases.
What is person-focused pay? Skill-based pay? Competency-based pay?
person-focused pay-plans generally reward employees for acquiring job-related competency, knowledge, or skills, rather than for demonstrating successful job performance. Competency-based pay: two basic types of person-focused pay. skill based pay- is a compensation system that rewards employees with additional pay in exchange for formal certification of the employee's mastery of skills, knowledge, and/or competencies. Skill is acquired and observable expertise in performing tasks. Competency-based pay-structures reward employees based on the skills, knowledge and experience they apply in the workplace rather than their job title or position.
Be familiar with Figure 9-4 relating to determinants of direct financial compensation.
pg 236
What are the different types of individual incentive plans and the advantage of each (piecework, management incentive plans, behavioral encouragement plans, referral plans)?
piecework-employees are paid for each unit they produce management incentive plans-bonuses to managers who meet or exceed objectives based on sales,profit,production,or other measures behavioral encouragement plans-individual incentive pay plans that reward employees for specific such behavioral accomplishments as good attendance referral plans-rewarding individual for referral of new customers or recruiting successful job applicants
Relating to the Dodd-Frank Act, what is say on pay, golden parachute, and clawback policies?
say on pay-Gives shareholders in all but smallest companies an advisory vote on executive pay;Some expect vote will cause greater accountability on executive pay;Votes at least every 3 years golden parachute-Perquisite protecting executives in event another company acquires firm or executive is forced to leave firm for other reasons;At times has been abused;Dodd-Frank Act has disclosure requirements;Requires shareholder advisory vote on certain arrangements clawback policies-Provision allows company to recover compensation if subsequent review indicates payments were not calculated accurately or performance goals were not met Dodd-Frank Act requires companies to develop Clawback policies to recover compensation later deemed excessive
What are the most prominent contextual influences of direct financial compensation?
•labor market, labor unions, economy, inter industry wage differentials, legislation