HR Exam 4

(final)

comprehensive view of compensation that includes pay, training, health and wellness benefits, PTO with work-life balance, interesting work, culture and motivational aspects of work

total rewards

personal satisfaction that comes from the job itself (i.e., pride, sense of accomplishment)

intrinsic rewards

come from source outside the job and are typically offered by management (i.e., promotions, bonuses)

extrinsic rewards

tied to specific job performance criteria (i.e., group bonuses, merit pay, commission)

performance-based rewards

i.e., salary increase, benefits

membership-based rewards

T/F: Membership-based rewards are offered to ALL employees

true

The Fair Labor Standards Act (FLSA) requires what four things?

Minimum wage, Overtime pay, Record-keeping, Child labor restrictions

what are exempt employees

professional and managerial employees not \n covered under FSLA overtime provisions

what are nonexempt employees

eligible for overtime pay, minimum wage (7.25) or 2.13 if tipped, and reimbursement if tips do not equal minimum wage

T/F: FLSA doesn't recognize internships, but allows \n exceptions to minimum wage for training

true

T/F: people under 14 may not work, even with parental consent

false

T/F: 14 -15 year olds can work in some jobs outside of school hours for limited hours

true

T/F: 16 - 17 year olds can work in non-hazardous jobs for unlimited hours

true

Businesses with government contracts $10,000 and over \n must pay prevailing wage set by DOL

Walsh-Healy Act

Prohibits discrimination in pay on the basis of race, color, \n creed, age, or sex

Civil Rights Act

Requires men and women hired for the same job be paid \n the same; Salaries should be established on the basis of skill, responsibility, effort, and working conditions

Equal Pay Act

T/F: If local supply of labor is less than the demand, wages will decrease

False; it will increase

T/F: If local supply of labor is greater than the demand, wages will decrease

True

T/F: Low unemployment requires employers to raise wages to tempt employees to leave their current employment and apply

true

T/F: High unemployment rates force employers to pay more due to a plentiful supply of workers

FALSE (allows them to pay LESS)

employers can compete for workers in what three ways?

match (pay same as comp), lead (pay more than comp), lag (pay less than comp)

T/F: When the Consumer Price Index (CPI) increases, \n wages must also increase to allow workers to \n maintain their standard of living

true

T/F: Employers with unionized employee tend to pay \n higher wages

true

may require non-union employers in the same area to raise wages

spillover effect

what administration designs cost-effective pay structures that attract, motivate and retain competent \n employees.

compensation administration

what kind of information determines the \n relative value, or rank, of each job in the \n organization

job analysis info

A committee places jobs in a simple rank order from highest (worth highest pay) to lowest

ordering method

Jobs placed in grades to compare their descriptions to the benchmarked jobs. Look for a common denominator (skills, knowledge, responsibility)

classification method

Jobs are rated and allocated points on several criteria. Jobs with similar point totals are placed in similar pay grades. Offers the greatest stability

point method

Used to gather factual data on pay rates for other \n organizations. Information is often collected on \n associated employee benefits as well

compensation surveys

Drawn by plotting job evaluation data (such as job \n points or grades) against pay rates (actual or from \n survey data); indicates if pay structure is logical

wage curves

Designates pay ranges for jobs of similar value. Results \n in a logical hierarchy of wages, in overlapping ranges

wage structure

what are the three building blocks for financial compensation?

base pay

premium pay

variable pay

pay determined by evaluation process. may be paid as salary, hourly wage, piecework.

base pay

pay for dangerous activities, overtime, on-call duty, special skills

premium pay

pay designed to focus priorities on organizational objectives like sales and productivity. includes commission, bonuses, merit pay, competency-based pay, broad-banding, group rewards

variable pay

supervisor and employee committees suggest labor-serving improvements

scanlon plan

formula used to determine bonuses based on labor cost savings

improshare

perks offered to attract, retain, and motivate good managers and may include life insurance, company cars, club memberships

executive perquisites

provide financial windfall if a merger or hostile takeover occurs.

golden parachutes

balance-sheet approach uses what four factors?

base pay

differentials

incentives

assistance programs

T/F: employee benefits are part of the total rewards compensation plan aligned with organizational strategy.

true

T/F: Employee involvement in selecting \n benefits leads to greater satisfaction

true

what percent are benefits of total compensation?

30%

T/F: Benefit and service offerings add about 30% to an organization’s payroll cost.

true

what percent of employees are not aware of the content of their benefit packages?

over 60%

What is financed by equal employee and employer \n contributions, based on a percentage of earnings and provides income for retired workers?

social security

Funded by employers who pay combined federal \n and state tax imposed on taxable wage base, provides workers with some income while involuntarily unemployed

unemployment compensation

how many weeks does unemployment compensation typically cover?

26

what are the requirements for receiving unemployment?

involuntary job loss (not fired though)

must have worked minimum # of weeks

applied for unemployment

willing to accept any SUITABLE job

T/F: workers compensation is paid for by the organization, no matter who is at fault

true

Provides for continuation of benefits for up to three years after an employee leaves a job

COBRA

Requires employers and health providers to protect the confidentiality of employee health information

Health Insurance Portability and Accountability Act of 1996

individuals must purchase minimum coverage or pay a fine; employers must provide coverage if they have over 50 employees; enacted to make healthcare more affordable and understandable

Patient Protection and Affordable Care Act (Obamacare)

A type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the organization

Health Maintenance Organizations (HMOs)

Employer or insurer agrees to use provider's network of doctors, hospitals and medical service facilities in exchange for reduced cost

Preferred Provider Organizations (PPOs)

Similar to HMOs and PPOs, but requires employees to select a primary \n physician, but allows greater flexibility for using \n out-of-network services.

Point of Service Plans (POS)

Employer provides a plan with low monthly premiums and high deductibles; less expensive for employer, more expensive for employee

High Deductable Health Plan (HDHP)

Similar to HDHP, but more popular with employees because it includes a Health Savings Account (HSA)

Consumer Driven Health Plans (CDHP)

which plan is most commonly offered?

HMO

PPO

HDHP

CDHP

PPO (55%)

T/F: Long-term disability plans usually replace a portion of the employee’s salary, often 60%

true

law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Employee Retirement Income Security Act \n (ERISA) of 1974

which is not a defined contribution plan?

Money purchase pension plans

profit-sharing plans

SS

IRAs

401k

SS

T/F: PTO is only required in some states

FALSE. not required anywhere in US

what percent of US workers do not take all their vacation time?

70%

how many injuries are reported each year in the US?

approx 3.1M

created in 1970 to establish health and safety standards. authorizes inspections and fines for violations, and requires employers to keep records of illness and injury in the workplace.

OSHA (Occupational Health and Safety Act)

OSHA covers four major categories of employers:

General industry \n Construction \n Agriculture \n Maritime

covers any potentially dangerous or unhealthy workplace condition that isn’t covered by OSHA

general duty clause

OSHA requirements for record keeping:

form 300

records kept for dangerous jobs

incidence rate

work-related injury/illness must be reported

OSHA 6 inspection priorities:

imminent danger

fatalities/catastrophes

employee complaints

referrals

follow-ups

planned investigations

When a complaint is received, OSHA follows a standard procedure to follow

1. inspector presents credentials
2. conference about reason for inspection
3. inspector tours facility
4. closing conference

willful violation

employer ignored regulations

repeated violation

same violation twice

who researches work hazards and sets OSHA standards?

NIOSH

which of these is not a way to protect employees from workplace violence?

better security

train management on dealing with troubled employees

communicate policies on violence

teach employees how to fight

teach employees how to deal with violence

teach employees how to fight

three ways to reduce bullying in the workplace

culture of respect

education

clear policy

why is smoking costly?

increased absenteeism

increased healthcare costs

more hospitalization/longer stays

lost productivity (smoke breaks)

disciplinary/accident rates increase

ways to discourage smoking?

higher healthcare costs for smokers

ban smoking during work hours and on work property

require smokers to quit

Musculoskeletal disorders (MSDs) account for over ___ percent of worker injury and illness

30

Redesigning workplaces with _____ in mind may reduce injuries and costs to employers

ergonomics

Burnout is a function of three concerns:

chronic emotional stress + exhaustion

lowered job productivity

dehumanizing of jobs

Four techniques HR can use to reduce burnout:

identification

prevention

mediation

remediation

an organization of workers, \n acting collectively, seeking to promote \n and protect its mutual interests through \n collective bargaining

union

Only ___% of the private sector workforce \n is unionized

6\.3

Labor contracts typically stipulate these three things:

wages, hours, terms/conditions of employment

4 reasons workers unionize:

higher wages/benefits

greater job security

influence over work rules

dissatisfaction with mgmt

Require that all employees hired into positions covered under the collective-bargaining agreement must join the union

union shops

Prohibit union membership as a condition of employment

right-to-work laws

“Bill of rights” for unions, guaranteeing right to organize and bargain collectively; Also known as the National Labor Relations Act

Wagner act

• Determines bargaining units. \n • Conducts elections. \n • Prevents or corrects unfair labor practices.

National Labor Relations Board (NLRB)

Also known as the Labor-Management Relations Act; Amended Wagner Act to address employer concerns; Specified unfair union labor practices

Taft-Hartley Act

Once the National Labor Relations Board certifies a union, each worker does not have to abide by the negotiated contract

FALSE. they do

____ elections can be held to vote unions out.

representation decertification (RD)

when employers and unions negotiate \\n an agreement in good faith that outlines wages, hours, terms and conditions of employment

collective bargaining

wages, bonuses, and pension plans are ___ rewards.

intrinsic

extrinsic

financial

autonomy

financial

the most significant piece of legislation in the area of employee health and safety is:

OSHA

the ___ is the source of companies’ compensation programs

job evaluation

scallion and improshare are examples of ___ incentives

org.-wide

T/F: EAPs give employees confidential visits with counselors at the company’s expense

True