Hrm 200 Test #3

1. Compensation (money)

2. Benefits (bonuses, vacations)

3. Work-life programs (childcare, gym classes)

4. Performance and recognition (Pay-for-performance, commission)

5. Development opportunities (pay for school, textbooks, etc)

- Legal/labour standards (Pay equity, human rights, canada/quebec pension plan, worker's compensation, employment insurance)

- Union: collective bargaining

- Compensation policies

- Equity: Internal or external

1. Conduct job evaluation

2. Group similar jobs into pay grades

3. Conduct salary survey

4. Price each pay grade using wage curves

5. Fine-tune pay rates

A fundamental aspect of a job (Ex. Skill, effort, working conditions, responsibility)

Classification/grading method

Point method

Factor comparison method

2. Group jobs to be rated

3. Select compensable factors

4. Rank jobs

5. Combine ratings

- Categorize jobs into classes or grades

- Classes contain similar jobs

- Grades contain dissimilar jobs of equal difficulty

Classes contain similar jobs, while grades contain dissimilar jobs of equal difficulty

-Identify compensable factors, and determine the degree to which each factor is present in each job

1. Determine clusters of jobs to be evaluated

2. Collect job information

3. Select and define compensable factors

4. Define factor degrees

5. Determine factor weights

6. Assign point values to factors and degrees

7. Write the job evaluation manual

- Rank jobs according to skill/difficulty factors

- Sum rankings for overall numerical ranking for each job

- Incorporate wage rates

Point: Range of points

Ranking: All jobs within 2-3 ranks

Classification: Jobs in same classes/grades

Factor comparison: Specified range of pay rates

The employer

- Find average pay for each pay grade

- Plot pay rates for each pay grade

- Fit a wage line through points (regression)

Price jobs

Rate of pay that is above the pay range maximum

Individual knowledge, skills, and behaviours that are critical to successful individual or corporate performance

Salary, benefits, short/long-term incentives, perquisites

Eliminate systematic pay discrimination by providing equal pay to both male and female dominated job classes

Systematic discrimination

A plan that links pay productivity, profitability, or some other measure of organizational performance

Individual incentive programs

Group incentive programs

Profit sharing plans

Gainsharing plans

A program with spontaneous awards for an individual's accomplishments

Production standard is set for a specific work group, and members are paid if the group exceeds the set standard

An organization-wide incentive program offering employees with a share of the organization's profits in a specific period

An organization-wide plan designed to reward employees for improvement in organizational productivity

Piecework plans

Standard hour plan

Team/group incentive plan

Key position, salary level cutoff point, salary grade

1. Stock options

2. Book value plan

3. Stock appreciation rights

4. Performance achievement plan

5. Restricted stock plans

6. Phantom stock plans

7. Performance plans

Tradition, unsupervised nature of work, incentives needed to motivate

Salary plan (Fixed salary, occasional bonuses)

Commission Plan (Pay in direct proportion to sales)

Combination plan (Salary + Commission)

- A salary increase awarded to an employee based on individual performance

- Effectiveness is based on the validity of the performance appraisal system

- Sometimes paid as a lump sum without changing the base salary

- Different than a bonus

- Incentives based on results longer than one year

- New equipment and facilities

- Supportive management lifestyle

- Support for research publications

A plan whereby most/all employees share in the company's profits. Different types: Cash plans, deferred profit sharing, or both

Pros: Easy to administer, broad appeal to employees

Cons: Found only to produce a one-time productivity improvement, annual payout not as effective as more frequent payouts

A trust is established to hold shares of company stock purchased for or issued to employees. The trust distributes the stock to employees on retirement, separation from service, or what is stated in the plan

- Can encourage employees to develop a sense of ownership to the firm

Employees share in any extra profits resulting from their cost-cutting suggestions. It divides the payroll expenses by total sales.

- Designed to encourage cooperation, involvement and sharing of benefits

Same as the scanlon plan, but uses payroll divided by the sales minus materials and supplies

- Units of output can be measured

- Clear relationship between employee effort and quantity of output

- Standardized job, regular workflow with few/consistent delays

- Quality is less important than quantity

- Pay for performance

- Link incentives to career development and challenging opportunities

- Link incentives to measurable competencies

- Match incentives to the culture of the organization

- Keep group incentives clear and simple

- Over-communicate

Lack of recognition and praise

Cost-effective

Improves employee attitudes and productivity

Important communication tool

Indirect financial payments used to reward loyalty and tenure

- Employment insurance

- Canada/Quebec Pension Plan

- Worker's compensation

- Vacations and holidays

- Leaves of absence

- Pay on termination of employment

Income benefits for individuals unable to work through no fault of their own

Retirement income, survivor or death benefits, and disability benefits to individuals who contribute to these plans

Income and medical benefits to victims of work-related accidents and illness, regardless of fault

Maternity leave

Paternity leave

Bereavement leave

Compassionate care leave

- Specified in employment standards legislation

- Pay in lieu of notice

- Severance pay

- Pay for mass layoffs

- Life insurance

- Supplementary health care/medial insurance

- Short-term disability/sick leave

- Long term disability

- Additional leaves of advance

- Additional paid vacations and holidays

- Retirement benefits

- Group life insurance

- Accidental death and dismemberment insurance

- Critical illness insurance

Percentage of expenses in excess of the deductible paid for by the insurance plan

- Increase amount paid by employees

- Public a restricted list of drugs covered

- Offer health promotion programs

- Implement risk assessment programs

- Health services spending accounts

- Short-term disability plans pay during entire absence (often at declining percentages of salary)

- Sick leave plans pay for a specified # of days only

Pay for employees with non-work-related long-term illness or injury (unless retirement is necessary)

A program to assist disabled employees with return to work (ex. reduced work hours/duties, workstation modification)

Alcoholism

Absenteeism

Injury

Physical illness

Lost productivity

Defined benefit pension plan: Contains a formula for determining retirement benefits

Defined contribution pension plan: Employer's contribution to the employees' retirement fund is specified

The employer

The company profits credited to employee's account are payable at retirement, termination or death

- Membership requirements

- Benefit formula

- Retirement age

- Funding

- Vesting

- Portability

- Rapid growth of defined contribution plans

- Phased retirement

- Supplemental employee retirement plans

Supplemental employee retirement plans - Plans that provide additional pension benefit required for employees to receive their full pension benefit

Credit unions

Counselling services

Employee assistance prorams

- Subsidized childcare

- Eldercare

- Subsidized employee transportation

- Food services

- Educational subsidies

- Family-friendly benefits

- Loans

- Golden parachutes

- Financial counselling

- Company relocation benefits

- Limousines

- Executive dining room

- Concierge service

Pros: Choose benefits to suit individual needs, meet changing needs of workforce, introduction of new benefits is less costly

Cons: Employees choose wrong plans, increased admin cost, adverse selection

Their salary is protected if the company is a target of acquisition or merger

Laws intended to protect the health and safety of workers by minimizing work-related accidents and illnesses

1. General health and safety

2. Specific industries

3. Specific hazards

1. Right to know about hazards

2. Right to participate in H&S process

3. Right to refuse unsafe work if they have reasonable cause

Joint health and safety committees

Health and safety inspectors

Control of toxic substances

Workplace hazardous materials information system - Canada wide legally mandated system designed to protect workers by providing info about hazardous materials in the workplace

1. Labeling of hazardous materials

2. Material safety data sheets - outlines hazardous ingredients and procedures for safe handling

3. Employee training

- Legislation imposes personal duty on supervisors to ensure safety

- Need to get workers to want to work safely

- Safety commitment begins with top management

1. Chance occurrences (Beyond control)

2. Unsafe conditions

3. Unsafe acts (By employees)

- Improperly guarded equipment

- Defective equipment

- Hazardous procedures

- Unsafe storage

- Improper illumination

- Improper ventiliation

- Some jobs are more dangerous than others

- Work schedule (fatigue)

- Psychological climate (stress)

- Throwing materials

- Operating/working at unsafe speeds

- Rendering safety devices inoperative

- Using unsafe equipment/procedures

- Improper lifting

- Horseplay

- Poor vision

- Age (16-28)

- Difference in perceptual vs. motor skill

Reduce unsafe conditions, and reduce unsafe acts

- Selection and placement

- Training and education

- Positive reinforcement

- Top-management commitment

- Monitoring work overload & stress

Before: Take accident prevention measures

After: Ensure medical attention, be supportive & keep in touch, facilitate return to work

- Stress management

- Nutrition/weight management

- Smoking programs

- Heart health

- Physical fitness

- Ergonomics

- Substance abuse

- Job stress

- Repetitive strain injuries

- Workplace toxins

- Workplace smoking

- Violence at work

Manufacturing

- Monitor employee behaviour

- Keep a written record of behaviour

- Refer employees to EAP

- In house counselling (EAP)

- Referral to outside agency (AA)

- Discipline

- Discharge

1. Test is rationally connected to performance of the job

2. Test is adopted in honest and good-faith belief that it is necessary for the fulfillment of work-related purpose

3. Test is reasonably necessary to the accomplishment of the work-related purpose

1. Forbid drugs/alcohol in the workplace

2. Require random drug testing only for "safety sensitive jobs"

3. Require mandatory drug testing "for cause" or "post-incident" in certain circumstances

- Work schedule

- Pace of work

- Lack of job security

- Type A personality

- Work/family conflict

- Family problems

- Supervisory monitoring

- Job transfer

- EAP counselling

- Fair treatment

- Control over one's job

Total depletion of physical and mental resources

Caused by excessive striving to meet unrealistic goals

- Break patterns

- Get away from it all periodically

- Reassess goals

- Think about work

- Reduce stress

Customers or strangers rather than co-workers, common in health care or retail

- Institute workplace violence policy

- Identify jobs with high risk of violence

- Heighten security measures

- Improve employee screening

- Provide workplace violence training

2. Making decisions that influence other people's lives

3. Denying a service or request

4. Working alone

5. Handing valuables, guns, drugs, etc.

6. Supervising/disciplining others

7. Interacting with frustrated individuals

8. Working in client's homes

9. Having contact with individuals under the influence of alcohol, illegal drugs, or medication

Ongoing interactions between labour unions and management

An officially recognized association of employees in a similar trade, employed in the same company/industry

View unions as legitimate representative of firm's employees

Desire to avoid a union at all costs

1. To provide a common set of rules for fair negotiations

2. To ensure protection of the public interest by preventing the impact of labour disputes from inconveniencing the public

90%/10%

1. Certification procedures

2. Minimum one year collective agreements

3. Procedures preceeding legal strike/lockout

4. No strikes/lockouts during life of contract

5. Interpretation disputes settle by binding arbitration

6. Prohibition of unfair labour practices

7. Labour relations boards to enforce legislation

Craft union: Workers practicing the same trade

Industrial union: Workers in the same industry

Associations/Public Sector Unions

International, national, and local

1. Canadian labour congress (CLC)

2. Confederation des Syndicats Nationaux (CSN)

3. American federation of labour - Congress of Industrial Organizations (AFL-CIO)

1. Global competition and technological change (work sent offshore, shrinking unions)

2. Privatization and unionization of white-collar employees

3. Innovative workplace practices

1. Employees seek collective representation

2. Union organizing campaign begins

3. Official recognition of the union

4. Collective bargaining

5. Day to day contract administration begins

- Job dissatisfaction

- Lack of job security

- Perceived inequities in pay

- Unfair administration of policies

- Lack of opportunity for advancement

- Lack of influence on work-related decisions

- Belief that unions can improve working conditions

- Stress favourable employer-employee relationship experienced without a union

- Emphasize current advantages in wages, benefits, or working conditions the employee may enjoy

- Emphasize unfavourable aspects of unions: Strikes, union dues

- Initiate legal action when union members and leaders engage in unfair labour policies

1. Employee-union contract

2. Initial organization meeting

3. Formation of in-house committee

4. Organizing campaign

5. Outcome / Issue of certificate and election of committee

- Express views on unions

- State position on remaining non-union

- Prohibit union activity on copany property/time

- Increase wages in normal course of business

- Gather employees to state company's position

A process by which a formal collective agreement is established between labour and management

1. Preparation (gather data, form bargaining terms)

1.5 Develop strategies (develop management proposals and limits of conecssions, consider opponent's goals, make strike plans)

2. Face-to-face negotiations (Bargain in good faith, analyze & resolve proposals, stay within bargaining zone)

3. Obtaining approval for proposed contract

- Gather economic data

- Analyze other collective agreements

- Audit/analysis of grievances

- Review existing contract/union promises

- Conduct wage/benefit surveys, prepare costing

- Contingency planning

Management: Obtain input from supervisors

Union: Obtain company financial info, input from union stewards and members, gather demographic data on members

- Bargaining history between parties

- Laws and administrative rulings

- Other negotiated outcomes

- Public opinion

- Personalities of negotiators

- Economic influences

Distributive: win-lose approach

Integrative: Win-win approach

- Interest-based/mutual gains takes interests of ALL stakeholders into account

Summary of terms and conditions agreed to by negotiators that is submitted to management and union membership for approval

A secret ballot, a formal approval of agreement by union members

They are both assistance by a neutral outside third party. However, conciliation is required prior to a strike, and mediation is usually voluntary

2. Lockout (management action

3. Interest arbitration

- Union recognition

- Union security/checkoff

- No strikes or lockout

- Arbitration

- Management rights (areas in which management may exercise rights without agreement from union

- Employee access to records

- Limitations on use of performance evaluation

- Elder care leave

- Flexible medical spending accounts

- Protection against hazards of technology equipment

- Limitations against electronic monitoring

Union shop

Modified union shop

Open shop

Only union members in good standing can be hired by employer to perform bargaining unit work

In a union shop, you must join the union once you are hired. In a modified union shop, you do not need to join once you are hired, but you must pay dues.

The union membership is voluntary and nonmembers are not required to pay dues

If you voluntarily join a union, you must remain a member for the entire contract

a workplace situation where the payment of trade union dues is mandatory regardless of the worker's union status

Stage 1: Employee gives written grievance to supervisor

Stage 2: Discussion by grievor, HR, union steward

Stage 4: Discussion by senior management and top union officials

Stage 4: Rights arbitration: Arbitrator gives decision

A process for employees where strikes cannot be tolerated to reach agreement (Police, firefighters, etc)

The arbitrator must select one of the final offers submitted by the disputing parties.

The offer likely to be chosen is the one whose final bargaining offer has moved the closest towards a reasonable settlement

1. The arbitrator declares the hearing open and obtains the submission agreement

2. Parties present opening statements

3. Each side presents its case

4. Parties make closing statements

1. The wording of the collective agreement

2. The submission agreement

3. ????????

4. profit

2. Customer service

3. HR

- Deployment of skill where needed

- Spreading knowledge throughout organization

- Identifying and developing talent on a global basis

- Candidate identification, assessment, selection

- Global assignment cost projections

- Specific assignment letters (A contract)

- Compensation, benefits, and tax programs

- Relocation assistance

- Family support

- Culture

- Economic systems

- Labour cost

- Industrial Relations

- The European union

- Expatriate selection process

locals: citizen of country where working

expatriates: non-citizen

home-country nationals: citizens of home/parent country

third-country nationals: non-citizen of parent or host country

ethnocentric: home country management style superior to host country - we know best

polycentric: host country management style most appropriate for host country: they know best

geocentric: best managers may be found anywhere - just get the best

- Relational skills (Respect, courtesy)

- Flexibility (Emotional stability)

- Extra-cultural openness (ex. interest in foreign countries)

- Family situation (children, partner/marriage stability)

- Orientation and training

- International compensation balance sheet

- Incentives

- International EAPs

- Performance appraisal

- International labour relations

- Safety and fair treatment

- Repatriation (bringing 'em back)

- Raise awareness of cultural differences and their impact- Understand our attitudes and their effects on our behaviour- Factual knowledge about target country- Language skills, adjustment and adaptation

- Maintain same standard of living as home

- Base salary

- Overseas/foreign service premium

- Allowances (Housing, education)

- Not stock-based as currency fluctuations may impact stock price more than managerial action

- Tied to performance of foreign subsidiary

- Builds a sense of ownership among local managers

- Attracts and retains overseas managers

- Help with stress of relocation

- Homesickness

- Boredom

- Depression

-Family tension/conflict

- Stipulate difficult level of assignment

- Weight on-site managers' appraisal higher than home-sight manager

- Advice to home-country manager from former expatriate

- Modify performance criteria for overseas situation

- Locals are less autonomous

- Employer associations negotiate (overseas employers get together like unions do here)

- Union recognition and security is less formal

- Grievances and strikes are less frequent

- Less gov't regulation, more direct intervention

- More worker participation

- Kidnap and ransom insurance

- Security systems

- Vary departure and arrival times for work

- Project confident body language (NYC)

- Write repatriation agreements

- Assign a sponsor / mentor

- Provide career counselling

- Keep communication open

- Offer financial support

- Develop reorientation programs

- Build in return trips

- Apply various international HR best practices

- To be globally acceptable

- To develop more effectively

- To implement more effectively