HRM FInal

Validity

Correctness of the measure.

Reliability

Consistency of the measure.

Inter-Reliability

Consistency between multiple raters.

Test-Retest

Consistency when the same test is repeated over time.

Compa-Ratio

Actual pay divided by midpoint salary x 100; indicates how an employee's pay compares to the market average.

Employee Stock Option Program (ESOP)

Allows employees to purchase company stock at a reduced rate.

Health Maintenance Organization (HMO)

Offers lower premiums, requires in-network doctors and referrals.

Preferred Provider Organization (PPO)

Higher premiums with no referral needed and more flexibility.

COBRA

Consolidated Omnibus Budget Reconciliation Act - Continued health insurance for up to 36 months after job loss, with full cost paid by the employee.

Employee Retirement Income Security Act (ERISA)

Guarantees pensions and requires company record-keeping.

Vesting

Guarantee of pension or retirement benefits after meeting certain requirements.

Progressive Disciplinary Process

Step-by-step approach to discipline that escalates penalties over time.

Hot Stove Discipline

Immediate discipline that is consistent and impersonal, resembling touching a hot stove.

Simple Ranking

Placing employees in order from best to worst.

Forced Distribution

Assigning employees to categories based on a bell curve.

Paired Comparison

Comparing each employee against every other employee.

Behaviorally Anchored Rating Scale (BARS)

Rating performance based on specific behavioral examples.

Management by Objectives (MBO)

Managers and employees set and evaluate specific, measurable goals. While providing continous feedback.

Similar-to-Me Bias

Favoring employees who are similar to the evaluator.

Contrast Bias

Comparing employees to each other rather than to performance standards.

Distribution Errors

Errors including leniency, strictness, and central tendency in performance ratings.

Rater Bias

Halo and horns effects in performance evaluations.

Fair Labor Standards Act (FLSA)

Covers minimum wage, overtime, child labor laws, and record-keeping.

Exempt Employees

Salaried employees not eligible for overtime.

Non-Exempt Employees

Hourly employees eligible for overtime.

Overtime Pay

Time-and-a-half pay for hours worked over 40 in a week.

Child Labor Laws

Regulations on employment of minors.

Equity Theory

Employees compare their outcome/input ratio to others.

Internal Equity Theory

Comparing pay with coworkers.

External Equity Theory

Comparing pay with employees in other companies.

Unemployment Insurance

Provides income to eligible workers who lose their jobs through no fault of their own.

Workers' Compensation

Insurance providing medical care and income replacement for work-related injuries.

Family Medical Leave Act (FMLA)

12 weeks of unpaid leave for family or medical reasons.

Flexible Spending Account (FSA)

Pre-tax savings for medical expenses, with a use-it-or-lose-it policy.

Defined Contribution Plans

Retirement savings where both employer and employee contribute.

Defined Benefit Plans

Employer-funded pensions with guaranteed benefits.

Pension Benefit Guaranty Corporation (PBGC)

Protects pensions if companies fail.

Craft Unions

Unions for workers with specific skills, like plumbers or bakers.

Critical Incident Theory

Evaluating employees based on key positive or negative job-related events.

Checkoff Policy

Deducting union dues directly from employee paychecks.

Closed Shop

Requires joining the union before being hired.

Union Shop

Requires joining the union after being hired.

Agency Shop

Allows employees to choose not to join the union but requires payment of union fees.

1935 Wagner Act

Legalized unions and collective bargaining.

Right to Work Laws

Employees are not required to join or pay union dues.

Sign-Off Procedure

Union needs 30% of workforce to authorize union election.

National Labor Relations Board (NLRB)

Oversees union elections and enforces labor laws.

FOE Rule

Companies can share Facts, Opinions, and Examples during union organizing.

TIPS Rule

Companies cannot Threaten, Interrogate, Promise, or Spy during union organizing.

Social Security

6.2% of pay goes to social security (OSADHI); benefits can start from age 62. 8% increase each year until 70. 10 years of quarters (40 quarters to qualify for benefits)

benefits covered by law

Includes social security, unemployment, health insurance, workers comp, and FMLA.

Full Retirement Age

The age at which a person may first become entitled to full or unreduced retirement benefits from Social Security, typically between 65 and 67 years depending on the birth year. Before 1955 = 65 after = 67