HR Management 9-15

Checkoff Provision

Contract provision under which employer, on behalf of the union, automatically deducts union dues from employee’s paychecks

Labor union Goals

Obtain pay and working conditions that satisfy members, Gives members a voice in decisions that affect them, Membership linked to better compensation and benefits(Two tier wage structures)

Management Goals

Increase the organization’s profits, keep labor costs low and increase output (limit increase in wages and benefits, retain control over work rules and schedules), maintain flexible operations to meet competitive challenges and customer demands.

Unions in Government

Membership among government workers is strong, Government regulations and laws support the right of government workers to organize (Executive Order 10988 established collective bargaining rights), Labor relations different with government workers (Strikes illegal for federal and state workers in most states.

Union Steward

Elected to represent union and ensures that terms of labor contract are enforced

Local unions

Most day-to-day interaction between labor and management involves the local union, member-elect officials and vote on resolutions to strike.

Craft Union

Members have a particular skill or occupation

Industrial Union

Members linked by their work in a particular industry

Labor Relations

Field emphasizing labor-management cooperation, Involves a labor relations strategy, negotiating contracts, and administering contracts

Taft-Hartley Act of 1947

Right-to-work laws: State laws that make union shops, maintenance of membership, and agency shops illegal, Unions believe that all employees who receive union benefits should pay union dues.

Landrum-Griffin Act of 1959

Regulates unions actions with regard to their members, including financial disclosure and conduct of elections

National Labor Relations Board

Conducts and certifies representation elections. Prevents unfair labor practices. The federal government agency that enforces the National Labor Relations Act (Consists of a five-member board, a general counsel, and 52 regional and other field offices,

National Labor Relations Act

Protects the following activities: Union Organizing, joining a union, whether recognized by employer or not, going out on strike, Refraining from activity on behalf of the union (Most employees in private sector covered by NLRA

The process of organizing

Union representatives contact employees, Employees invited to sign Authorization card (30% must sign), If not signed, the NLRB conducts a secret ballot election (consent election, stipulation election) Workers vote for or against union representation.

Decertification

When members vote out existing union

Collective Bargaining

Union and Management representatives negotiate to arrive at a contract defining conditions of employment, typical contracts include provisions for pay, benefits, work rules, and resolution of workers’ grievances, bargaining structure varies by situation

Strike

A collective decision by union members not to work until certain demands or conditions are met

Lockout

Employer excludes workers from workplace until they meet certain conditions

Mediation

Mediation hears view of both sides and facilitates negotiation but has no formal authority to dictate resolution

Fact Finder

Third party reports reasons for dispute, views and arguments of both sides, and possibly recommends a settlement

Arbitration

Arbitrator or arbitration board determines a binding settlement

Contract Administration

Carrying out the terms of the agreement, resolving conflicts over interpretation or violations of the agreement

Grievance Procedure

The process to resolve union-management conflicts, Important means of getting fair treatment in the workplace, Key influence on contract administration success

Labor-Management Cooperation

Traditionally, the two sides viewed as adversaries, More cooperation between labor and management, NLRB supports employees’ involvement in work teams and decision making

Management-established systems

Representatives of employees meet with management to discuss

Worker Center

Nonprofit organization offering members services such as training, legal advice, lobbying and worker advocacy

Social Security

Employers and employees share cost through payroll tax to provide the following benefits in the OASHI program: old age insurance, Survivor’s insurance, Hospital insurance, Supplementary medical insurance

Unemployment Insurance

Federally mandated program administered by states, minimizes unemployment hardship, most funding comes from taxes on employers (Size of unemployment tax imposed on the employer depends on the employer’s experience rating

Workers Compensation

State programs that provide benefit to workers who suffer work-related injuries/illness, or to their survivors, Generally two-thirds of workers’ earning and tax free

Family and Medical Leave Act (FMLA)

Organizations with 50 or more employees must provide up to 12 weeks of unpaid leave: After childbirth or adoption, to care for a seriously ill family member, For an employee’s own serious illness. Same/comparable guaranteed upon employee’s return, Must comply with pregnancy Discrimination Act

Patient Protection and Affordable Care Act

Employers not required by law to provide healthcare, Law is complex and changing; HR professionals must continue to educate themselves on the requirements,Small businesses can buy insurance from SHOP.

Paid Leave

Average paid leave in U.S. 23 vacation days and 10 paid holiday, Personal days, floating holidays, and PTO options, Major Categories: vacations, holidays, sick leave

Consolidated Omnibus Budget Reconciliation Act

Employers required to allow employees to extend health insurance coverage at group rates for up to 36 months after layoff, reduction in hours, or employee’s death

Life Insurance

Employers may provide life insurance or offer the opportunity to buy coverage at low group rates, Term-life insurance: if employee dies during term of policy, beneficiaries receive a death benefit payment.

Short-term Disability Insurance

Percentage of employee’s salary paid as benefits for six months or less

Long-Term Disability

Percentage of employee’s salary paid as benefits after an initial period and potentially for rest of employee’s life, employers can also offer long-term care insurance

Contributory Plan

Funded by employer and employee

Noncontributory Plan

Funded entirely by employer

Defined benefit Plan

Guarantees specified level of retirement income (Meets requirements of employee Retirement Income Security Act, Aided by the Pension Benefit Guarantee Corporation)

Defined-Contribution Plan

Employer sets up account for each employee; specifies soze of contribution into account (Money Purchase Plan, Profit-sharing and employee stock ownership plans, Section 401k plans)

Cash Balance Plan

Employer sets up account for each employee; contributes percentage of employee’s salary

Vesting Rights

When employees become participants in pension plans and work a specified number of years, they are guaranteed to receive pension at retirement regardless of if they remained with employer

Summary Plan Description

Report that describes pension plan’s funding, eligibility requirements, risks, and other details; Individual benefit statement describes employee’s vested and unvested benefits

Cafeteria-style Plan

Employees can choose the types and amounts of benefits they want from a set of alternatives

Financial Accounting States Board

Sets requirements for companies’ financial statements (Ensures that statements are true picture of financial status)

Incentive Pay

Forms of pay designed to energize, direct, or control employee’s behavior; often linked to employee’s performance as an individual, group member, or organization member, may be in form of a commission or bonus

Piecework Rate

Wage based on the amount an employee produces

Straight Piecework Plan

Employer pays same rate per piece no matter how much worker produces

Differential Piece Rates

Piece rate is higher when a greater amount is produced

Standard Hour Plan

Pays workers extra for work done in less than a present “standard time” Encourages employees to work fast as possible; employees often neglect quality or customer service

Merit Pay

Pay increases linked to ratings on performance appraisals; Uses a merit increase grid (Preformance rating, Compa-ratio)

Sales Comssions

Incentive pay calculated as percentage of sales

Gainsharing

Measures improvements in productivity and effectiveness and distributes portion of each gain to employees

Group Bonuses

Used in smaller groups, reward members of group for attaining a specific goal; usually measured in terms of physical output

Team Awards

Likely to use a broad range of performance measures (Cost savings, Completion project, meeting deadlines

Profit sharing

Payments are a percentage of organizations profits and are not apart pf employees base salary, may encourage employees to think like owners, evidence not clear whether profit sharing is effective in improving performance

Stock Options

Rights to buy a certain number of shares of stock at specified price; traditionally have been granted to executives

ESOP

Employee stock ownership plan; organization distributes shares of stock to all employees by placing them in a trust; most common form of ownership

Balanced Scorecard

Combination of performance measures; directed toward the company’s long- and short-term goals; used as the basis for awarding incentive pay

Short Term Incentives

Bonuses based on ROI, years profits, or other measures related to goals; actual payment of bonus can be delayed to gain tax advantages

Long Term Incentives

Stock options; Stock Purchase Plan; Rationale is that executives will want what is best for the organization because that will cause the value of their stock to grow

Job structure

Relative pay for different jobs within organization

Pay structre

Pay policy resulting from job structure and pay level decisions

Pay level

Average amount the organization pays for a particular job

Equal Employment Opportunity

Differences in pay must not be based on employees age, sex, race, or other protected status; Laws do not guarantee equal pay; there are many legitimate factors that influance a persons earnings

Fair Labor standards act

Federal law establishes minimum wage and requirements for overtime pay and child labor

Exempt Employees

Managers, outside salespeople, and other employees not covered by FLSA requirement

Nonexempt Employees

Employees covered by FLSA requirments for overtime pay

Hourly Wage

Rate of pay per each hour worked

Piecework rate

Rate of pay per each unit produced

Salary

Rate of pay per week, month, or year worked

Pay Policy Line

On graph shows relationship between job evaluation points and pay rates

Pay Grades

Sets of jobs having simila worth or content grouped together to establish pay rates

Pay Ranges

set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade

Pay Differentials

Adjustment to pay rate to reflect differences in working conditions or labor markets, offered in U.S. by geographic location(Common approach move employee higher in pay structure to compensate for higher cost of living)

Delayering

Reducing number of levels in organizations job structure; more assignments combined into single layer called broad band; more emphasis on acquiring experience, not promotion

Skill Based Pay systems

Pay set according to employees level of skills or knowledge; Appropriate where changing technology requires employees to continually widen and deepen their knowledge

Comp-Ratio

The ratio of average pay to the midpoint of the pay range; ensures that pay policies and practices match

Punishment

Following unacceptable behavior with some type of negative consequences

Discipline

The system of rules and procedures for how and when punishment is administered and how severe the punishment should be

Progressive Discipline

Establishes expectations and predictability; applies consequences fairly and consistently; protects against complaints and lawsuits; helps rehabilitate employees with potential

Performance improvement process

People want to succeed at work; people will respond to consistent, ongoing feedback; people make the correct choices about their employment if, as managers, set expectations and provide consistent feedback

Informal conversations

Consistent, daily feedback; communicate expectations; conversations should provide both positive and corrective feedback; “sandwich effect”

Formal reminder

Manager initiates this process when informal conversations have not resulted in behavior performance change; ask associate to recommit to standards; approach is personalized

Documenting Discipline

Include key information; keep records for as long as policy mandates; sign documents; have a witness when appropriate

Voluntary Turnover

Turnover initiated by employees; often when organizations would prefer to keep them; employee retires or moves on to a new opportunity

Involuntary Turnover

Turnover initiated by employer; often when the employees would prefer to stay; job termination

Employee at will Doctrine

Unless otherwise specified in contract, employer and employee may end employment relationship at anytime; implied contracts; discharge cannot violate law or public policy

Psychological contract

Workers feel responsible for advancing own careers; loyalty toward employer less likley; retaining talent can be a challange

Discipline and discharge

Organizations must have a standardize and systematic approach to separation (shouldn’t be left to individual managers, should be based on principles of justice and law

Progressive Discipline

Formal discipline process; consequences more severe with each repeat offense: tardiness and absenteeism, unsafe work practices, poor quality of work, theft, cyberslacking

Hot-Stove Rule

Principle that says discipline should be like a hot stove: Glowing stove gives warning not to touch, anyone who ignores is burned, stove has no feelings to influence which people it burns, stove delivers same burn to all; its immediate

Open door policy

Organizations policy of making managers available to hear about complaints and conflict; works to degree that employees trust management to act

Peer Review

Process for resolving conflict; panel listens to case and works to help parties agree to settlement; panel made of reps from organization at same level as people in dispute

Mediation

Non-binding process; Neutral party from outside organization hears case; helps parties arrive to settlement

Arbitration

Binding process; professional arbitrator hears case and resolves it by making a decision

Employee Assistance Program

Referral service employees can use to seek professional treatment for emotional problems or substance abuse; many EAP’s fully integrated into health benefits plans; managers usually trained to use referral service for employees they suspect of needing help

Outplacement Counseling

Discharged employees likely to feel angry or confused; organizations may provide outplacement counseling to help employees transition from one job to another; goal to help employee address psychological issues caused by losing the job while helping them find a new job

Employee Engagement

Degree to which employees are fully involved in work and strength of commitment to job and company

Job Withdrawal

Set behaviors with which employees try to avoid the work situation physically, mentally, and emotionally