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HRM Final Exam ReviewChapters 11 & 12- Pay Structure : relative pay of different jobs (jobs structure) and how much they are paid (pay level)- Pay Level : average pay, including wages, salaries and bonuses- Job Structure: relative pay of jobs (the range of pay often expressed by salary grades) - Pay Policies: are attached to jobs, not individuals - Compa-ratio: one way to examine the difference between policy and practice is to compute a compa—ratio, which is the ratio between actual pay and the midpoint of the pay range. It is directly assessed with the degree to which actual pay is consistent with the pay policy between actual and intended pay. - Pay Range : different employees in the same job that may have different pay rates- Equity Theory and Fairness : participants pay satisfactions is influenced by how they perceive they are pad relative to someone else. If they feel pay is equitable they are motivated. - Merit Pay : links to performance—appraisal ratings to annual pay increase, Merit pay programs, annual pay increases are usually linked to performance appraisal ratings. The size and frequency of pay increases are most often determinedby performance rating (since better-performing employees should be rewarded more than low performers) and position in range (compa-ratio).- Gain Sharing : programs offer a means of sharing productivity gains with employees are based on group or plant performance that does not become part of the employee’s base salaryo Gain Sharing differs in two key respects. First, instead of using an organization-level performance measure (profits), the programs measure group or plant performance, which is likely to be seen as more controllable by employees. Second, payouts are distributed more frequently and not deferred. In a sense, gain sharing programs represent an effort to pull out the best features of organization-oriented plans like profit sharing and individual-oriented plans like merit pay and individual incentives.- Profit Sharing: under profit sharing, payments are based on a measure of organization performance (profits), and payments do not become a part of base pay. Advantage: profit sharing may encourage employees to think more like owners. Disadvantage: workers may perceive their performances has less to do with profit than top management decisions over which they have little control. It usually is not tied to benefits such as increases is 401(k) contributions. - Incentive Pay: individual incentives reward individual performance but payments are not rolled into base pay and performance is usually measured as physical output rather than by subjective ratings. . Monetary incentives increased production by 30 percent in a study by Locke. Individual incentives are relatively rare. Although individual incentives carry potential advantages, they are not likely to contribute to a flexible, proactive, problem-solving workforce- Pay at Risk: you have the potential to earn a lot of money or you could earn very little money less than paid a flat salaryChapter 13- Consolidated Omnibus Budges Reconciliation Act (COBRA): Requires employers to permit employees to extend health insurance coverage to permit employees to extended health insurance coverage at group rates for upto 36 months following a qualifying event such as termination-The Employee Retirement Income Security Act (ERISA): guarantees that employees, after working a certain number of years, earn the right to a pension upon retirement, referred to as vesting rights. o Obligates employers to describe the plan’s funding, eligibility requirements, risks, and so forth within 90 days after an employee has entered the plan. Besides specifying termination procedures as mentioned, ERISA requires certain guidelines to be met on management and funding. Employers are required to fund future obligations sufficiently. There are a number of reporting and disclosure requirements to the IRS, to the Department of Labor, and to employees. Even if an employee leaves the organization before retirement, the contributions are vested.- Vesting ^^^^- Paid Time Off (PTO): a pto pools all paid time off into one account. This would include sick leave, vacation, holidays, personal days etc. employees can use up to the amount in their PTO account. They do not need toprovide excuses for sick leave. Some pans allow employees to buy days. Some plans allow employees to cash in unused days. Some plans allow employees to give days to other employees - Total Rewards : Fixed pay + Variable pay + Benefits = Total Rewards- Cafeteria Plans : similar concept to PTO, workers given a pool of benefits dollars that they can spend on how they choose. Some restrictions may apply mandated by the employer. Offers maximum flexibility but also increases complexity. - Share The Risk : key concept: a large pool of insured share the costs or losses for everyone in the pool. To make this work you have to have healthy people.- The law of 80:20 : eight percent of all healthcare costs are caused by the 20% most ill employeesChapter 14 & 15Terms:- Closed Shop : is a union security provision under which a person must be a union member- Union Shop : requires a person to join the union within a certain length of time after beginning employment- Agency Shop : is similar to a union shop, but does not require union membership, only that an agency fee be paid.- Right-To-Work Laws: as a function of the Taft-Hartley amend-men to the NLRA, states may decide to make mandatory union membership (or even dues paying) illegal.- Lockout : A lockout is a temporary work stoppage or denial of employment initiated by the management of a company during a labor dispute. A lockout is a temporary work stoppage or denial of employment initiated by the management of a company during a labor dispute.- Check-Off Provision : a union contract provision that requires an employer to deduct union dues from employees’ paychecks. Is an automatic deduction of union dues form an employee’s paycheck- Mediation : has no formal authority to force a solution; acts as a facilitator for parties. A procedure for resolving collective bargaining impasses by which a mediator with no formal authority acts as a facilitator and go-between in the negotiations. Mediation is provided by the Federal Mediation and Conciliation Service. While a mediator has no formal authority to force a solution, he or she acts as a facilitator for the


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KSU MIS 34180 - Final Exam Review

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