exam 3 ch 11-14 Flashcards

Question

SKILL-BASED PAY

Answer 1

People get paid for the skills they possess  Different skill sets; each employee rated on their skill level at each skill set

Answer 2

is a federal law that governs many compensation practices.  The FLSA, which was passed in 1938, is designed to protect employees.  The law establishes a national minimum wage, regulates overtime, requires equal pay for men and women, and establishes guidelines for employing children.

Answer 3

Exempt and nonexempt employees  Exempt employees: not covered by FLSA regulations  Get paid a salary  Usually not required to keep track of hours worked  Nonexempt employees: covered by FLSA regulations  Get paid on an hourly basis  Have to track hours worked

Answer 4

Executive exemption(primarily manages business or department, surpervises 2 or more employees, hires and fires, exercise discretion professional exemption(performs tasks that require specialized knowledge, produce original and creative work, exercise discretion0 administrative exemption(perforce office or non manual work, performs technical work, assists executives) outside sales(regularly works away from plays of business, spends at least 80 %of time selling)

Answer 5

In July 2009, the minimum wage was $7.25 per hour  Exception: service jobs with tips  $2.13 per hour; and the company must pay them enough so that their total pay (including hourly wage and tips) reaches the minimum wage

Answer 6

represents the blend of rewards employees receive from the organization.  Money paid as wages or salary is the largest component of most compensation packages.  Benefits and short- and long-term rewards make up the rest of the package.

Answer 7

At-risk pay is compensation that can vary from pay period to pay period.  The money is at risk because the employee will not earn it unless performance objectives are met.

Answer 8

s a reward that is based on the personal performance of the employee.  Individual incentives are linked to performance behaviors and outcomes.  Powerful motivators, but may decrease cooperation  Your Exam grades

Answer 9

is a reward based on the collective performance of a team or organization.  Encourages cooperation, but may induce social loafing  Group presentation grades

Answer 10

where employees are paid a fixed amount for each piece of output they produce.  Strong pay-for-performance link  May encourage undesirable behaviors (e.g., risk taking, deviant behaviors)  Suitable when: individual has sole responsibility for product/service

Answer 11

represent a special form of piece-rate compensation that is most often associated with sales.  For each sale obtained, a commission, or percentage of the total amount received, is paid to the salesperson.  Could be combined with a low base salary (why?)  For employee: strong pay-for-performance link; but pay not evenly distributed across months

Answer 12

represent an increase in base salary or hourly rate that is linked to performance  It requires a high-quality performance assessment system  Downside:  Small differences among merit increases  Labor cost

Answer 13

a sum of money given to an employee in addition to normal wages on a fixed schedule, such as at the end of the year.  Sometimes bonuses are unplanned and given when high performance is observed.  Less costly than merit pay increase  Flexible (can be given when exceptional performance is observed)

Answer 14

provides a payment when a team reaches a specific goal.

Answer 15

provides payment when high performance is observed. With discretionary rewards, no goal is set to achieve a specific outcome.

Answer 16

occurs when groups of workers receive a portion of the financial return from reducing costs and improving productivity.  Specify a benchmark for productivity  Especially relevant for manufacturing companies

Answer 17

occurs when employees receive incentive payments based on overall organizational profits.  Can be deferred payment (after certain years of employment)  Problems:  Employees feel little control over company profit  Dissatisfaction when there is no profit

Answer 18

transfer corporate stock to individual employees.  stock options: the right to buy company stock at a given price on a future date and could be tied to performance or pay grade.  employee stock ownership plans (ESOPs): the organization contributes stock shares to a tax-exempt trust that holds and manages the stock for employees

Answer 19

Base pay: is compensation that is consistent, not at risk, across time periods and not directly dependent on performance.  An hourly wage or annual salary  Employee benefits: are rewards other than monetary salary and wages, typically includes such things as retirement saving and insurance.

Answer 20

Social Security  Unemployment Insurance  Workers’ Compensation  Healthcare Plans

Answer 21

It created a social security system in which workers pay into a fund and then draw from the fund when they retire.  Both the employee and the organization contribute 7.65% of wages and salary up to a certain amount to the social security fund.  Retired and disabled individuals and surviving spouses and dependent children receive a monthly payment.  A mandatory benefit provided to almost all retired and disabled individuals, and surviving spouses and dependent children.

Answer 22

Each state has an unemployment insurance programs that provides protection for workers who lose jobs through no fault of their own.  To qualify:  Must have been employed for a minimum amount of time  Must have been discharged for a reason outside of his/her control  Voluntary turnover, being fired due to one’s own fault – Not covered

Answer 23

Organizations engaged in dangerous work, and those that have high accident rates pay more

Answer 24

Employers with more than 50 employees must provide health insurance for all employees or pay a fine.

Answer 25

ll individuals, except those with very low incomes, are required to have health insurance or pay a fine.  This mandate is no longer effective/included in ACA.  Companies with more than 50 employees must pay a fine unless they provide health insurance coverage to all full-time employees  Small businesses with fewer than 50 employees receive tax credits when they provide health insurance coverage to their employees  Insurance companies cannot cancel or deny coverage to someone who is ill.

Answer 26

Healthcare plans  Supplemental insurance  Life insurance  Disability insurance  Retirement savings  Defined benefit  Defined contribution:  The organization pays a certain amount each month into a retirement savings account for each employee. Pay without work  Compensation paid for time off, such as holidays  Sick leave: compensation paid to employees who are unable to work because they are ill  Paid time off (PTO): cover leave for various reasons, such as vacation, sick days etc.

Answer 27

s an organization representing the collective interests of workers.

Answer 28

The interaction between the organization and the labor union

Answer 29

passed in 1926. The RLA regulated relationships between railroads and unions and still regulates labor relations in the railroad and later the airlines industry. Before that court system saw employment relationships as private agreements

Answer 30

The first piece of legislation in the Labor Code is the Wagner Act, actually titled the National Labor Relations Act.  It specifically gives employees the right to form and join unions and to assist unions in recruiting members and is seen primarily as pro-union legislation.  It created the National Labor Relations Board (NLRB), which enforces the Wagner Act.

Answer 31

threatening employees with loss of jobs or benefits if they join a union threatening to close a plant if a union is organized questioning employees about union activities or memembership spying on union gatherings granting wage increase deliberately timed discourage employees from forming a union

Answer 32

formally known as the Labor- Management Relations Act, was passed in 1947.  Taft-Hartley shifted power back toward management interests by creating a list of unfair labor practices for unions.  The act prohibits labor unions from coercing employees to join and requires unions, like management, to bargain in good faith.

Answer 33

mass picketing in numbers physically bar others from entering the plant threatening bodily injury to other employees threatening that employees will lose their jobs unless they support the union entering a contract with an employer when a majority of employees have not chosen the union fining or expelling members for filing unfair labor charges with the NLRB

Answer 34

ormally known as the Labor- Management Reporting and Disclosure Act, was passed in 1959.  This act regulates the internal workings of unions and protects union members from abuse by corrupt leaders.

Answer 35

Union membership in the United States has been decreasing steadily since the 1950s.  Representation is significantly higher in the public sector, with almost 40 percent of the workforce organized into labor unions.

Answer 36

Wages include things such as minimum salary, bonus payments, and benefits.  Hours focuses on work scheduling and includes holidays, vacation time, and shifts.  Working conditions encompass safety rules, promotions, layoffs, and grievance procedures.

Answer 37

Labor unions tend to increase wages and improve working conditions for  Unionized  Nonunionized workers  The threat of unionization can also help

Answer 38

 The process of agreeing on a labor contract

Answer 39

Failure to reach agreement.A work stoppage can be initiated by either the employer or the union

Answer 40

lockout occurs when an employer shuts down operations during a labor dispute. Members of the union are prohibited from working and are not paid.  strike occurs when union members collectively refuse to perform their jobs.  Picket lines  Striking employees may also encourage consumers or other companies not to purchase the company’s goods or services, which is known as a boycott.

Answer 41

Vertical  Horizontal

Answer 42

Refers to the positioning of an organization’s human resource management strategy to support the competitive business strategy.  Business strategy: being an innovative market leader  HR strategy: lead-the-market pay; highly competitive selection process; etc.

Answer 43

This alignment is concerned with the coordination of parts within the organization.  In human resource management, horizontal alignment refers to the fit of specific practices with other practices.

exam 3 ch 11-14 Flashcards

(72 cards)