Term
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Definition
| refers to the monetary and non monetary rewards employees receive in exchange for the work they do for an organization |
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Term
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Definition
| the hourly wages and salaries paid to employees, as well as any incentives including merit raises and bonuses or commissions |
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Term
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Definition
| The benefits and services employees receive, such as their health care, vacations, lunches, company paid training, etc. |
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Term
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Definition
| the sum of all the aspects of a compensation package (base pay, incentives, benefits, perks, etc.) and to signal to employees that they are receiving more than just base pay |
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Term
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Definition
| Communicates information to employees about what is valued within the organization, enhances the likelihood of consistency in pay across the organizational units, and helps attract, motivate, and retain employees |
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Term
| Goal Behind Total Rewards |
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Definition
| to motivate employees by helping them understand everything they are receiving from the organization in exchange for the work they do |
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Term
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Definition
| The theory that employees compare their input (work effort) and outcome (wages) levels with those of other people in similar situations to determine if they are being treated the same in terms of pay and other outcomes |
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Term
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Definition
| Occurs when each job in a company is valued appropriately relative to every other job in terms of its ability to help the firm achieve its goals |
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Term
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Definition
| The systematic process of establishing the relative worth of the jobs within the company |
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Term
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Definition
| Type of job evaluation that involves reviewing job descriptions and listing the jobs in order, from highest to lowest worth to the company |
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Term
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Definition
| a type of job evaluation that involves developing broad descriptions for groups of jobs that are similar in terms of their tasks, duties responsibilities, and qualifications for the purpose of assigning wages |
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Term
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Definition
| A quantitative method of job evaluation that involves assigning point values to jobs based on compensable factors to create the relative worth hierarchy for jobs in the company |
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Term
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Definition
| Aspects of jobs, such as skill, effort, responsibility, and working conditions that exist across jobs in a company, are needed by employees for the firm to achieve its objectives, and for which the company is willing to pay |
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Term
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Definition
| jobs that are used to represent the range of jobs in a company and that can be used for comparison with jobs in other companies for the purpose of establishing pay rates. |
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Term
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Definition
| Grouping jobs with comparable points together to reflect hierarchy of jobs within a company for the purpose of establishing wage rates |
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Term
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Definition
| A quantitative type of job evaluation that involves ranking benchmark jobs in relation to each other on several factors, such as mental requirements, physical requirements, skill, responsibility and working conditions, then assigning a portion of the hourly rate for each job to each factor |
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Term
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Definition
| ensuring pay rates for hobs in accompany are appropriately aligned relative to pay rates for similar his in the company external labor market |
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Term
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Definition
| The systematic process of assigning monetary rates to jobs so that a firm's internal wages are aligned with the external wages in the marketplace. Used to develop pay policy |
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Term
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Definition
| The market line that represents the relationship between the job evaluation points and the salaries paid for the jobs |
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Term
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Definition
| Approach used to reduce the complexity of compensation system by consolidating a large number of pay grades into a fewer number of "broad" grades (or bands) |
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Term
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Definition
| A systematic process for collecting information about wages in the external labor market |
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Definition
Each grade has a range
-Minimum of range
-Midpoint of range
-Maximum of Range |
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Term
| Skill-based pay and a knowledge-based pay |
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Definition
| systems that require employees to acquire certain skills or knowledge in order to receive a pay increase |
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Term
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Definition
| highly structured pay system that identifies the competencies employees need to master to be eligible for pay raises |
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Term
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Definition
| A method for determining pay for jobs by collecting salary information from the external labor market first rather than starting with the development of an internal structure based on the value of the jobs within the company |
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Term
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Definition
| A theory in which people experience positive consequences after they do something, they are likely to repeat those actions |
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Term
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Definition
| Goals serve as a motivator to focus the efforts of employees when the goals are specific, challenging, and attainable |
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Term
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Definition
| Employees make decisions regarding how to act at work based on which behaviors they believe will lead to their most valued rewards and outcomes |
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Term
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Definition
| The degree to which employees believe they will be able to achieve the objective |
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Term
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Definition
| Employees believe that achieving the objective will be rewarded |
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Definition
| The degree of value employees place on different rewards |
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Term
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Definition
| Managers can motivate their employers to act in certain ways by aligning their interests with the other interests of the firms other stakeholders |
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Term
| Merit Pay Programs/Merit Pay Increase |
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Definition
Employees receive a compensation adjustment base on results of their performance evaluation
-- Permanently raises base salary and company's costs
--Rewards empl0yees for past performance
--Might appear insignificant when spread out over 52 paychecks |
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Term
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Definition
| One time payment based on an employee's level of performance |
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Term
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Definition
| An individual incentive plan in which employees receive a certain rate of pay for each unit they produce |
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Term
| Differential Piecework Plan |
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Definition
| An individual incentive plan in which the pay employees receive per unit produced or delivered changes at certain levels of output |
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Term
| Piecework Incentive Plans |
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Definition
| Reward employees for future performance |
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Term
| Difficulty of Piecework Incentive Plans |
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Definition
1.Employees make focus only on aspects of the job that they get rewarded for
2. Some taks are difficult to measure |
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Term
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Definition
Pay rate is set based on expected amount of time an employee needs to complete task
-- if employees exceed minimum, they will receive a premium for higher level of work |
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Term
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Definition
An incentive that companies used to encourage their employees to work towards specific outcomes
--Managers give awards "on the spot" when they see certain behaviors exhibited by employees |
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Term
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Definition
| Pays an employee a percentage of the total sales they generate |
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Term
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Definition
| Employees receive a set compensation, regardless of their level of sales (employees may not be as motivated to sell as much as they can) |
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Term
| Mixed Salary/ Commission Plan |
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Definition
| Employees receive a lower base salary (50%) and the remaining is commission based |
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Term
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Definition
All members are rewarded when team reaches or exceeds its target objectives
--Potential for "free riders" who do not work as hard as others |
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Term
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Definition
| Designed to help increase a company's efficiency by reading teams that exceed productivity levels with a share of the gains realized |
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Term
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Definition
| Employees make suggestions for how to improve a firm's productivity and the gains of that efficiency are shared with employees |
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Term
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Definition
| a group based plan based on the number of hours a firm expects to take to reach a certain level of output |
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Term
| Deferred Profit Sharing Plan |
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Definition
| The incentive money paid to an employee is put into a retirement account for the person |
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Term
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Definition
Company profits are shared with employees
--encourages collaboration and teamwork
--paid only when a company is doing well
--may take a while for employee's efforts to translate into profits |
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Term
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Definition
| provides employees the right to purchase shares of their company stock at some established price for period of time |
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Term
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Definition
| Plans that apply widely to a firm;s employees |
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Term
| Employee Stock Ownership Plan (ESOP) |
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Definition
| Company contributes shares of its stock to a trust set up for its employees |
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Term
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Definition
| the trust borrows against the company's future earning and as debit is repaid, employees receive shares of stick from trust |
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Term
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Definition
Multiple plans are used simultaneously
--goal is to maximize the benefits of each plan and minimize the downsides of each |
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Term
| Executive Compensation: Pay and Incentives |
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Definition
| Executive compensation has similar components as other compensation packages but the levels and percentages that each make up of total compensation and more variable |
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Term
| Common Components of Executive Compensation |
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Definition
1. Base Salary
2. Short and long term activities
3. benefits
4. services |
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Term
| Making Incentive Plans Effective |
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Definition
1.Link plan to firms strategic objectives
2. Have clear standards- predetermined levels of performance
3. Sample the full performance domain- all aspects of the job
4. Be attainable
5. Be easy to understand
6. Provide meaningful incentives
7. Evaluate regularly |
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Term
| Labor Market (Incentives) |
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Definition
1.Using incentives to increase diversity
2.Desirability of different rewards |
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Term
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Definition
1. How incentives are managed
2. Incentive plans for virtual workforce |
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Term
| Globalization (Incentives) |
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Definition
1. What is rewarded
2. Acceptability of different rewards |
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Term
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Definition
1. Ethical employee behavior
2. How employees and communities view executive incentive plans |
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Term
| Regulatory Issues (Incentives) |
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Definition
1. Bias and discrimination
2. Stock option backdating |
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Term
| Benefits and Safety Programs |
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Definition
1. Affect employee attitudes
2. Benefits focus on health and wellness
3. Safety programs important for employee and company well-being |
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Term
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Definition
1. Social Security
2. Unemployment Insurance
3. Workers Compensation
4. Affordable Care Act Employer Shared Responsibility Provisions |
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Term
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Definition
1. Put into effect in 1937
2. Funded by employer and employee contributions to provide old age, survivors, disability, and death benefits
3. Goal: to hep individuals and address societal issues;
--supplement but not replace retirement or disability income |
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Term
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Definition
| health insurance portion of Social Security for retirees 65 and older, and disabled workers |
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Term
| Unemployment Insurance (UI) Program |
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Definition
1. Partnership between states and federal government
2. Created by Social Security Act
3. Provides temporary financial assistance when workers involuntarily lose their jobs
4. Tax rats determined by each state |
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Term
| Workers Compensation Insurance |
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Definition
1. Provides cash benefits and medical care to workers with work-related injury or illness
2. Disability payments provided for workers with permanent disabilities
3. Employers pay insurance premiums and deductibles |
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Term
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Definition
| Employers with 50 full time employees must offer affordable health coverage to those employees and their dependents OR be subject to Employer Shared Responsibility payment |
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Term
| Affordable Care Act Coverage |
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Definition
1. Ended preexisting exclusions for children
2. Requires employer health plans to cover young adults up to age 26 on parents plan
3. End lifetime limits on coverage for all ew health insurance plans
4. Provides certain types of preventive care at no cost
5. Limits administrative costs by insurance companies |
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Term
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Definition
Benefits that an employer chooses to offer its employees without being required to do so
--Health, wellness, and welfare
--Life management
--Retirement |
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Term
| Health Maintenance Organization (HMOs) |
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Definition
| a type of managed health insurance program that requires employees to designate a primary care physician and have any visits to a specialist referred by the primary doctor |
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Term
| Preferred Provider Organizations (PPOs) |
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Definition
| Care program in which the employer negotiates with health care providers, usually in a network, for discounts and services for healthcare coverage for employees |
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Term
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Definition
| Minimum amount of employees must pay for health care as determined by their health insurance plan |
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Term
| Point-of-service Plan (POS) |
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Definition
| hybrid of an HMO and PPO where individuals can also receive treatment outside the network but must pay a higher deductible |
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Term
| Health Saving Account (HSA) |
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Definition
| A special account established through employers, banks, credit unions, insurance companies, and other approved financial institutions into which an employee sets aside money pre-tax to help pay for his or her health care options |
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Term
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Definition
1. Self funded Plans
2. Prescription Drug Benefits
3. Vision and Dental Insurance |
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Term
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Definition
1. Designed to keep employees healthy through education and incentives
2. Goal: reduce health care cost
3. Examples: Smoking cessation/weight loss/gym membership
4. May include health risk assessment |
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Term
| Employee Assistance Programs (EAPs) |
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Definition
1.Designed to help employees deal with personal problems that reduce work productivity
2. May include attorney consultation, child-care and elder-care options, budget information, addiction recovery, family counseling |
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Term
| Short-term Disability Plan |
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Definition
| Insurance plan that pays a specified portion of an employee's salary wen the employee is out of work for a limited time due to a disability |
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Term
| Long-term Disability (LTD) |
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Definition
| Plan that typically starts a specified period of time from the time of a disability and pays a portion of the employe's salary until retirement age |
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Term
| Accidental Death and Dismemberment Insurance (AD&D) |
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Definition
| Designed to compensate employees for the loss of a body part or to compensate the employee's family is an employee suffers the loss of a limb or died accidentally at work |
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Term
| Norris-LaGuardia Act of 1932 |
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Definition
1. makes it easier for employees to engage in union-organizing activities
2. Allowed for hearings, granted collective bargaining, union is not responsible for unlawful acts committed by the workers unless instigated of approved from the union |
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Term
| Wagner Act (National Labor Relations Act) |
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Definition
1. 1935
2. MOST IMPORTANT PIECE OF LABOR RELATIONS LEGISLATION
3. Protects the rights of employees and employers
4. Encourages them to collectively bargain
5. Controls their actions so that the economy won't be adversely affected by their actions |
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Term
| Wagner Act gave employees ability to: |
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Definition
1. form or attempt a union at their workplace
2. Join a union, even if its not recognized by their employer
3. Assist in union-organizing efforts
4.Engage in group activities (collective bargaining) such as attempting to modify their wages or working conditions
5. To refuse to do any or all of the above unless a clause requiring employees to join the union exists |
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Term
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Definition
| When two or more non-union employees act together to try to improve working conditions, or when a single employee approaches management after conferring with other employees on their behalf or is acting on behalf of other employees, their actions are covered by NLRA |
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Term
| Unfair Labor Practices (ULP) |
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Definition
1. Violations of the NLRA that deny rights and benefits to employees and can be the result of employer or union activity
2. Conditions on page 494 |
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Term
| National Labor Relations Board |
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Definition
| An agency of the United States government that was created by Congress to administer the NLRA |
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Term
| Two Purposes of National Labor Relations Board |
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Definition
1. Prevent and remedy and unfair labor practices on the part of either labor organizations or employers
2. To decide whether groups of employees want labor union representation so that they could engage collective bargaining |
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Term
Taft-Hartley Act of 1947
(Labor Management Relations Act) |
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Definition
| 1. Protects the rights of the employees and make the NLRB a more impartial referee for industrial relations rather than having it serve as an advocate for organized labor |
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Term
| Provisions of Taft-Hartley Act |
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Definition
1.To promote the full flow of commerce
2. Prescribe the legitimate rights of employees and employers in their relations affecting commerce
3. Provide orderly and peaceful procedures for preventing employees and employers from interfering with the legitimate rights of the other party
4. Protect the rights of individual employees in their relations with labor organizations
5. Protect the rights of the public in connection with labor disputes affecting commerce |
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Term
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Definition
| Laws that prevent workers from having to join a union as a condition of employment, be prevented from joining a union as a condition of employment, be forced to pay dues to a labor union, or be fired for not paying such dues |
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Term
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Definition
| The style of union ship was outlawed under Taft-Hartley and is considered the most extreme form of union membership because it requires workers to join a union before they can be hired and requires employers to go to the union first to hire new employees |
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Term
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Definition
| An arrangement under which all workers except managers in an organizational unit represented by a union have to become members of that union when a certain period of time after being hired or at lest pay the equivalent of union dues |
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Term
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Definition
| A labor union arrangement under which employees cannot be required to join a union but can be required to pay to a union an agency dee for purpose of initiation |
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Term
| National Emergency Strikes |
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Definition
| A strike or lockout prevented by the government because it affects an entire industry, or a substantial part of it, and/or national health and safety are imperiled |
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Term
| Landrum-Griffin Act (1959) |
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Definition
1. The last part of the National Labor Relations Code
2. Protects union members from being abused by inions
3. Outlines the responsibilities of union officers
4. Provides a bill of rights for union members |
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Term
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Definition
| Unions organized to represent the interests of members with specialized craft skills |
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Term
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Definition
| Unions that have traditionally represented semiskilled and unskilled workers in a particular industry |
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Term
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Definition
| A union member that serves as a liaison between the rest f the employees and the leadership of the union |
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Term
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Definition
| Federation of local unions |
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Term
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Definition
| The group of employees designated by the NLRB or identifying by the union and employer together as eligible to participate in a union election |
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Term
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Definition
A.K.A. Signature Card
Document indicating that an employee in INTERESTED in being represented by a union |
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Term
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Definition
| A list of names and addresses that a company must supply of employees who are eligible to vote in the representation election for a union |
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Term
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Definition
| A process whereby a company recognizes a union once the union has produced evidence that the majority of workers have signed authorization cards indicating that they want the union to represent them |
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Term
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Definition
| an arrangement in which a company agrees that it will not express its views bout unionization during the time when signatures are collected |
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Term
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Definition
| The process that labor unions and employers use to reach agreement about wages, benefits, hours worked, and other terms and conditions of employment. If workers are on strike then management can hire new workers only if the case is economic conditions not being met and not if they are being tried for breach of contract. |
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Term
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Definition
| The process that requires parties to meet at a reasonable time and come to the bargaining table ready to reach a collective bargaining agreement |
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Term
| Mandatory bargaining Topics |
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Definition
| Topics that must be negotiated including compensation and benefits hours of employment, and other conditions of employment |
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Term
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Definition
Non-mandatory issues:
--Employee rights
--Managerial Control
-- Benefits for retired union members
Often part of the collective bargaining negotiations |
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Term
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Definition
| Entering into a collective bargaining situation with no intention of reaching an agreement or in some other way violating the protocol for appropriate collective bargaining |
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Term
| Distributive Bargaining Strategy |
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Definition
| Negotiating strategy used when the goals of one party are in direct conflict with the goals of another party and results in a winner/loser |
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Term
| Integrative Bargaining Strategy |
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Definition
| negotiation strategy in which each party cooperates and work to reach a win-win outcome |
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Term
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Definition
| An extension of integrative bargaining in which each party looks for common goals in order to meet the interests of another party |
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Term
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Definition
| The situation in which both parties have made their final offers and are not willing to make further concessions |
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Term
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Definition
| A type of conciliation used when an impasse occurs in a collective bargaining session so that both parties keep working toward an agreement until they can resolve the issues at hand |
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Term
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Definition
| The arrangement whereby an outside party works with each side in negotiation to reach an acceptable agreement |
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Term
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Definition
| A method of resolving disputes in which a third party acts as an intermediary and actually make the decisions about how the issue should be resolved |
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Term
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Definition
| Formal steps that must be followed to settle disputes between labor and management |
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Term
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Definition
| a charge by one or more employees that management has violated their contractual rights |
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Term
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Definition
| the process of terminating union representation resulting in the union no longer representing the employees or engaging in collective bargaining on their behalf |
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Term
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Definition
| Tactical Strategies designed to identify and exploit opportunities to interfere with the normal operation of a business and affect its reputation |
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Term
| Civil Services Reform Act (1978) |
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Definition
Set up the Federal Labor Relations Authority
-- Oversight agency for labor management issues at the federal level |
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Term
Employee Retirement Income and Security Act of 1974
(ERISA) |
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Definition
| a federal law that protects benefits for retirees in the private sector |
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Term
| Defined Benefit Pension Plan |
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Definition
| A pension plan that provides an annuity to eligible employees upon their retirement with the amount paid per year based on a formula that usually includes a company-determined percentage, the number of years worked, and either the last salary or some average of previous years' salaries |
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Term
| Defined Contribution Plan |
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Definition
| A pension plan in which the employer specifies where the money will be deposited and often gives the employee the power to decide how the money will be invested with the retirement income being a function of how well money put into the plan was invested |
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Term
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Definition
also known as cafeteria plans
type of benefit plan that allows employees to choose which benefits they want to purchase forma menu of benefits |
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Term
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Definition
1. Paid Time Off
2. Educational Assistance
3. Child Care and Elder Care
4. Long-Term Care Benefits
5. Life Insurance
6. Financial Planning
7. Legal Services |
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Term
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Definition
| The company will pay for you to go to school or reimburse them for some or all of their of their educational costs |
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Term
| Child Care and Elder Care |
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Definition
| Provides long-term care insurance mainly to the baby boomers to keep the caregivers in the workplace |
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Term
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Definition
| Provides assistance to aging, disabled, and ill persons who need daily help with tasks such as dressing, eating, or bathing for an extended period of time. |
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Term
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Definition
| Provides financial protection, or income, for an employee's family in the event of the employee's death |
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Term
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Definition
| these help employees understand financial literacy and can help them to achieve financial security |
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Term
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Definition
| Typically provides employees with access to attorneys for assistance with everything from estate planning and adoption to legal representation if they are sued, all at a reduced fee |
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