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. To calculate a compa ratio, you divide an employee's actual salary by the midpoint of their salary range, then multiply by 100 to get a percentage; essentially, it shows how an employee's pay compares to the market average for their position, with a ratio of 1.00 indicating they are paid exactly at the midpoint.

    Formula: Compa Ratio = (Employee's Salary / Salary Midpoint) x 100.

  • ESOP: Employee Stock Option Program - Employees can purchase company stock at a reduced rate.

  • HMO: Health Maintenance Organization - Lower premiums, in-network doctors only, referral required.

  • PPO: Preferred Provider Organization - Higher premiums, no referral needed, more flexibility.

  • COBRA: Continued health insurance for up to 36 months after job loss, full cost paid by the employee.

  • ERISA: Employee Retirement Income Security Act - Guarantees pensions and requires company record-keeping.

  • Vesting: Guarantee of pension or retirement benefits after meeting certain requirements.

  • Exclusive Remedy: Employees cannot sue for workplace injuries if workers' compensation is provided.

  • Progressive Disciplinary Process: A step-by-step approach to discipline that escalates penalties over time.

  • Hot Stove Discipline: Immediate discipline that is consistent and impersonal, like 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. Managers work with EEs, and provide feedback to monitor progress

  • Similar-to-Me Bias: Favoring employees who are similar to the evaluator.

  • Contrast Bias: Comparing employees to each other rather than performance standards.

  • Distribution Errors: Leniency, Strictness, and Central Tendency in performance ratings.

  • Rater Bias: Halo and Horns effects in performance evaluations.

  • FLSA: Fair Labor Standards Act - 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.

  • FMLA: Family Medical Leave Act - 12 weeks of unpaid leave for family or medical reasons.

  • Flexible Spending Account (FSA): Pre-tax savings for medical expenses, use-it-or-lose-it.

  • Defined Contribution Plans: Retirement savings where both employer and employee contribute.

  • Defined Benefit Plans: Employer-funded pensions with guaranteed benefits.

  • PBGC: Pension Benefit Guaranty Corporation - 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: Must join union before being hired.

  • Union Shop: Must join union after being hired.

  • Agency Shop: Can choose not to join union but must pay 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.

  • NLRB: National Labor Relations Board - 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) up to a certain cap (~$175,000). Earliest age to receive benefits is 62 with a 25% reduction, full retirement age (FRA) is between 65-67, and benefits can increase up to 70 years old by 25%. Must earn 40 credits (1 credit = $1,510 earnings per quarter). 8% INCREASE EACH YEAR UNTIL 70

  • benefits covered by the law: social security, unemployment, health insurance, workers comp, FMLA