Term
| Differentiate among the components of a compensation system |
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Definition
4 elements
pay form- what you get paid
pay structure- internal structure
pay level- external comparison
pay philosophy |
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Term
| Categorize direct and indirect forms of compensation |
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Definition
Direct- employer provides monetary rewards for work done and performance results achieved. Base pay (salary, wage/hourly) and Variables (commissions, tips, peace-rates, includes incentives)(compensation linked directly to performance)
Indirect- Employees receive the tangible value of the rewards without receiving actual cash. Benefits (insurance, sick, vacation, tuition) in kind (uniforms) |
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Term
| Develop a method for establishing an organization’s pay structure |
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Definition
Point system- looks at compensable factors in a group of similar jobs and places
Ranking method- places jobs in order from highest to lowest value
Classification method- descriptions of each class of jobs written, then each put into a grade
Factor-comparison method- quantitative complex combination of ranking and point methods
broad banding (fewer grades, longer ranges, more flex) |
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Term
| Identify options for correcting problems in the pay structure |
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Definition
Red circle- being paid more than pay grade, review and defer, raise freeze, discuss freeze/restructure
Green circle-making less than someone in their pay grade should be, give a raise don't promote
compression-reduce initial but greater incentives |
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Term
| Outline the key features of the Fair Labor Standards Act (FLSA) |
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Definition
minimum wage- changes depending on where you are, federal (7.25), missouri (7.35, indexed change every year), illinois (8.25)
Child labor provisions
exempt-not covered by FLSA, salary, lose overtime
non exempt- covered, get overtime, hourly
to determine if exempt or not must pass- salary test, duties test( decision making, authority) |
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Term
| Compare and contrast quartile orientations in the pay level |
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Definition
Quartile strategy- employees placed into three categories.
>Meet the market- 2nd quartile, most fall into, balances employer cost pressures and need to attract and retain employees
>Lag the Market- 1st quartile, paying below market levels (shortage in employer's experience, abundance of workers with low skills) downside high worker turnover
>Lead the Market- 3rd quartile, aggressive, attracts and retains workers, have to be more selective with hiring |
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Term
| Detail the components of global compensation |
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Definition
Variation of laws, living costs, tax policies, etc. must be considered
Foreign service hardship premiums
relocation and moving allowances
housing and utilities allowances
cost of living adjustments
tax equalization payments
educational allowance for children
home leave and travel allowances |
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Term
| Determine whether an organization has an effective variable pay system |
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Definition
Pay range evaluations
pay-per-performance |
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Term
| Explain when an organization should use group/team incentives |
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Definition
improves productivity
ties pay to performance
improves customer service or production quality
increases employee retention |
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Term
| Discuss options organizations have for providing profit-sharing |
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Definition
Profit sharing- system to distribute a portion of the profits of an organization to employees. Increases productivity/performance, attracts/retains employees, improves product quality, enhances employee morale
Employee stock plans-plan that gives employee the right to purchase fixed number of shares of company stock at specified price for limited period of time. |
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Term
| Categorize benefits by type |
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Definition
employer pays 30-49% on top of salary
benefits can be competitive advantage
mandated/security- unemployment insurance, workers comp, economic security
insurance-health, dental, optimetics, disability, life
pay for time not worked
retirement
misc. |
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Term
| Advise an organization on how to compensate its sales force |
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Definition
commission
straight commission- all the risk is on employees, performance orientation
Salary plus system-one part salary, commission above that
Draw/advance- company guarantees X money and all commission but first X dollars is the company's to pay back
salary- relationship |
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Term
| Discuss options for providing time off benefits |
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Definition
basic PTO- vacation and sick
contingent- jury duty, bereavement
procedures- scheduling (priority, limits), documentation (what level is required, doctors note, death certificate) |
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Term
| Compare and contrast what benefits you receive for no longer working |
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Definition
Social security- since the inception payroll taxes risen 15.3%, Medicare taxes doubled to 2.9%
Pension Plans- Not required to offer, Defined-Benefit (employees promised a pension amount based on age and service), Defined-Contribution (employer makes an annual payment to employee's pension account) Cash Balance (benefits based on accumulation of annual company contributions plus interest credited year year)
401K |
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Term
| Describe HR’s options for providing retirement efforts |
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Definition
Retirement Equity in pension plans- Arizona Governing Committee v. Norris (forced pension plan administrators to use unisex mortality tables
Qualified domestic relations order- ERISA, agreement made by divorcing couple that identifies who gets assets in a retirement plan
Pension protection act 2006- requirements must be met by employers (must disclose assets and liabilities of pension plans, increase funding to cover unfunded liabilities)
Early retirement- giving workers option of retiring early |
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Term
| Advise an organization on how it should provide employee benefits |
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Definition
it a competitive advantage
workforce attraction and retention
benefits management
benefits communication |
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Term
| Discuss concerns with the provision of health insurance |
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Definition
what services- dental, eye
who covered- dependents and full time
how to provide- the trend is to shift cost to employees,
other options |
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Term
| Outline the key features of the FMLA |
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Definition
provides for 12 weeks of leave per 12 months- what determines a year
does not guarantee paid time
need documentation for all days
if for child (or someone else) has to be someone who can't take care of themselves
if no policy it goes to the employee |
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Term
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Definition
traditional -80/20 lots of freedom
Managed care-HMOS (health management organization, least amount of choice) PPOs (preferred provider organizations, if use doc outside of plan you pay more)
Consumer driven plans- high deductible plans, until you pay $X they will only partially pay, preventative care coverage
Health savings account- self funding insurance, like medical 401K (saves up over time
Flexible Spending- put money aside each year (use it or lose it)
Wellness Programs- healthier employees= lower health coverage incentives |
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Term
| Discuss the provision of dependent oriented benefits |
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Definition
Adoption benefits- maternity and paternity benefits
Child-care assistance- referrals, discounts, sick-child programs, after school programs, onsite childcare
elder care assistance |
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Term
| Differentiate between types of unions |
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Definition
AFL-CIO (federal level), international union of operating, engineers (national level), Local 148 (Local level), Union contract
Craft- focused around specific set or workers, skill trade
Industrial- whole industries
IWW- international workers of the world, revolutionary |
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Term
| Categorize union functions by organizational level |
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Definition
National and federal- do a lot of similar things, lobbying, research and support
Local- contract, grievance
Local officers- officer (prez, vp, treasurer), stewards (reps in company), Business agents (employees of union, assist with) |
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Term
| Outline the major provisions of US labor legislation |
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Definition
Wagner- NLRA(national labor relations act) 1935, framework for unions today, establishes, organizing, ULP(employer)
Taft Hartley- LMRA( labor management relations act) 1947, ULP (unions as well), right to work
Landrum Griffin- LMRDA 1959, Union member bill of rights, financial records
These don't cover public sector, railway labor act ( railroads and airlines) |
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Term
| Discuss trends in union organizing |
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Definition
Steady decrease in unionization since the 70s
spike in public because of landrum
other causes- jobs going overseas, jobs shifting in US |
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Term
| Categorize the main reasons that unions organize |
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Definition
Better working conditions
Wages
Poorly treated
Ideology |
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Term
| Explain how unions organize new workers |
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Definition
Grassroots
Only employees within organization
Most happens outside work
Company has the freedom
Card drive- authorizing union to be union rep, need 30% to force election |
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Term
| Outline the union election process |
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Definition
Card Drive
Determine Bargaining Unit- who is a supervisor
Election
Certified for 1 year
Negotiate contract |
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Term
| Describe key features of typical collective bargaining agreements |
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Definition
| Wages and conditions of employment Almost always have: grievance system, no strike clause, management rights/past practice clause (if no policy returns to past practice) Work Security ( non right to work states)- unions almost always try to get, dues checkoff (direct deposit of dues), union required membership (called union shop) |
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Term
| Compare and contrast means of resolving impasses |
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Definition
Disagreements- get over it, grievances (go to arbitration, binding)
Impasses- You can't get past the disagreement, contract negotiations ( goes to mediation, non binding) |
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Term
| Differentiate between types of strikes |
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Definition
Economic
Wildcat
sympathy
ULP
Jurisdictional- members on one union walk to to force employer to assign work to them instead of members of another |
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Term
| Identify the components of risk management |
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Definition
Health/Wellness
Safety
Security
Disasters |
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Term
| Explain how OSHA protects employees |
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Definition
Creates/Enforces standards
Notification- need to know if you are working in dangerous environment
General duty
Record keeping
Inspections |
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Term
| Categorize the components of safety management |
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Definition
Individual approach- reward/incentive, check output/performance
Organizational approach- Safety committees, spot checks
Engineering- Makes things safer (I.e. giving people back braces) |
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Term
| Identify employee health concerns |
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Definition
Health promotions- covered under wellness program
Emotional/mental health- Employee assistance programs
Substance abuse- post hire testing (random), Fitness for duty (tested everyday, typical for repeat offenders), Seen most often for cause (accident, behavior)
Handling positives- Alcohol(ics) covered under american disability act (drug addicts not covered, recovering is covered), should see if accommodations can be made
Environmental Health- Sick buildings ( something in the air makes you sick) |
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Term
| Discuss sources of workplace violence |
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Definition
Criminal- person with no legitimate relationship with business (robbery, shoplifting, trespassing)
Customer- legitimate relationship with business (patients, students, inmates, customers)
Coworker- current/past employee attacks or threatens another employee (contractor, temp)
Domestic- no legitimate relationship with business but has personal relationship with victim commits some form of violence against employee (family member, boyfriend) |
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Term
| Provide options for making a workplace more secure |
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Definition
Security audit- HR conduct comprehensive review of organizational security, survey of area, security available within firm, disaster plans
Controlled Access- control access to facility
Violence Training- everyone should be trained in how to recognize signs of potentially violent employee and what to do. |
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Term
| Describe the process of disaster planning |
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Definition
Organizational assessment- team conducts organizational assessment of how various disasters might affect organization/employees
Human Impact Planning- back up databases, employee contact info, who is responsible for certain duties.
Disaster training- training employees on what to do, (first aid, hazardous materials containment, disaster escape means, employer contact methods, organizational restoration efforts) |
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Term
| Discuss global health and safety concerns |
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Definition
International Emergency Health Services- coverage for international employees, for emergency situations
International Security and Terrorism- employer must regularly check on security conditions in countries where xpats are traveling and working
Kidnapping- kidnap and randsom insurance, covers cost of paying randsom to release kidnapped employees and family members, pays for injuries suffered to kidnap victims |
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