HR Mgt Ch 6-10

Going rate model

Analysis of the going rate for a particular job at a particular time is considered when creating the compensation package.

Broadbanding

Broadbanding is similar to a pay grade system, except all jobs in a particular category are assigned a specific pay category

Management Fit Model

Each manager makes a decision about who should be paid what when that person is hired

Expectancy Theory

Employees will put in as much work as they expect to receive

Vesting Period

For a (401)k plan a certain time period, such as a year, before the employer will match the funds contributed

Paired Comparison

Individual jobs are compared with every other job, based on a ranking system, and an overall score is given for each job, determining the highest-valued job to the lowest-valued job

Competency Pay

Rather than looking at specific skills, the competency-based approach looks at the employee's traits or characteristics as opposed to a specific skills set. This model focuses more on what the employee can become as opposed to the skills he or she already has.

Health Maintenance Organization

The HMO will likely have greater coverage than the fee-for-service plan, but it limits the ability of employees to see the doctors they choose. There may be a limited number of physicians and specialists for the employee to see, and going outside the plan and seeing another doctor may result in an out-of-pocket expense for the employee

Qualities for choosing best plan for company

The cost of the plan The type of coverage The quality of the care Administration of the plan

Implied Contract Exception

The discharged employee can prove that the employer indicated that the employee has job security

Good faith and fair dealing

The discharged employee contends that he was not treated fairly. This exception to the employment-at-will doctrine is less common than the first two

Hay profile method

This proprietary job evaluation method focuses on three factors called know-how, problem solving, and accountability; most applicable to management positions

Variable Pay System

This type of system provides employees with a pay basis but then links the attainment of certain goals or achievements directly to their pay

Skill based pay

With a skill-based pay system, salary levels are based on an employee's skills, as opposed to job title. This method is implemented similarly to the pay grade model, but rather than job title, a set of skills is assigned a particular pay grade.

Peer resolution system

a committee of management and employees is formed to review employee complaints or discipline issues

Market Plus Philosophy

a compensation policy that determines the going rate and adds a percentage to the market rate, so pay is higher than the market

Market Minus Philosophy

a compensation policy that determines the going rate and subtracts a particular percentage, so pay is less than the market

Ombudsman

a person is selected (or elected) to be the designated individual for employees to go to should they have a complaint or an issue with a discipline procedure

Arbitration

a person reviews the case and makes a resolution or a decision on the situation

Preferred Provider Organization

allows employees to see a physician outside the network.

Public Policy Exception

an employer may not fire an employee if it would violate the individual state's doctrine or statute

Compensable Factor

aspects of a job that are assigned points in a point factor system

Delayering and banding

cuts down the number of pay levels within the organization

Point-factor System

determines the value of a job by calculating the total points assigned to it

COBRA

equires companies to allow employees to extend their group coverage for up to thirty-six months

Job classification system

every job is classified and grouped based on the knowledge and skills required for the job, years of experience, and amount of authority for that job

Grievance Process

formal way by which employees can submit a complaint regarding something that is not administered correctly in the contract

Reinforcement Theory

if high performance is followed by some reward, that desired behavior will likely occur in the future. Likewise, if high performance isn't followed by a reward, it is less likely the high performance will occur in the future

Pay grade levels

looks at all jobs within the organization and assigns each job a pay level or grade

Equal Pay Act of 1963

makes it illegal to pay different wages to men and women if they perform equal work in the same workplace.

Constructive Discharge

means the employee resigned, but only because the work conditions were so intolerable that he or she had no choice

Interest Based Bargaining

mutual interests are brought up and discussed, rather than each party come to the table with a list of demands

Union

organization of employees formed to bargain with an employer

Fee-for-service plans

people pay for medical expenses out of pocket, and then are reimbursed for the benefit level

Comparable Worth

people should be given similar pay if they are performing the same type of job

Equity Theory

people will evaluate their own compensation by comparing their compensation to others' compensation and their inputs to others' inputs

Collective Bargaining process

process of negotiating an agreement between management and employees

Federal Employees Compensation Act

provides federal employees injured in the performance of their jobs compensation benefits, such as disability

Federal Unemployment Tax Act

provides for payments of unemployment compensation to workers who have lost their jobs

Worker Adjustment and retraining Act

requires organizations with more than one hundred employees to give employees and their communities at least sixty days' notice of closure or layoff affecting fifty or more full-time employees

Turnover

separations during the time period (month)/total number of employees midmonth × 100 = the percentage of turnover

Straight Commission Plan

the employee receives no base pay and entire pay is based on meeting sales goals

Step-review system

the performance issue is reviewed by consecutively higher levels of management, should there be disagreement by the employee in a discipline procedure

Job evaluation

the process of determining the relative worth of jobs to determine pay structure. Job evaluation can help us determine if pay is equitable and fair among our employees

Pay grading

the process of setting the pay scale for specific jobs or types of jobs

Employment at will principle

the right of an employer to fire an employee or an employee to leave an organization at any time, without any specific cause

Mediation

third party facilitates the resolution process, but the results of the process are not binding for either party

Market Compensation Policy

to pay the going rate for a particular job, within a particular market based on research and salary studies.

Fair Labor Standard Act

was established in 1938 and set a minimum wage for jobs, overtime laws, and child labor laws.

Absconding

when the employee decides to leave the organization without resigning and following the normal process