aPHR Flashcards
Name the major functions of HR.
- Staffing
- Performance management
- Compensation and benefits
- Training and Development
- Employee Relations
- Health, safety, and security
- HR research
Page 1
Name the most common issues treated in HR policies.
-Discipline problems (absenteeism, insubordination, inappropriate behavior)
-Promotions, transfers, and layoffs
-Compensation, pay increases, and benefits
-Holidays, vacations, and sick leave
-Appropriate uses of technology
-Termination
Page 4
What are the three major purposes that HR policies serve?
- Ensure fair and objective treatment to employees
- Help managers make quick, consistent decisions
- Give managers confidence to resolve problems and defend their decisions
Page 4
Name some topics typically covered in employee handbooks.
-A statement of the handbook’s purpose
-A brief history of the company and its products/services
-Mission/vision statement(s)
-Policy statements
-Info. about recruitment, promotion, termination, rehire policies
-Workplace conduct rules, complaint procedures, emergency procedures
-Disclaimer that the handbook is not a legally binding document (FRO)
Page 5
Name some rules that are generally lawful for a company to maintain.
-Civility rules (banning inappropriate conduct/behavior)
-Rules against capturing proprietary/confidential information/knowledge such as photos, logos, videos, etc. of company material w/out prior approval
-Rules against insubordination
-Rules against defamation
Page 6
Name some rules that may warrant scrutiny from the NLRB.
-Broad conflict-of-interest rules that do not specifically target fraud and self-enrichment
-Rules that regard disparagement or criticism of the employer
-Rules regulating the use of the employer’s name
-Rules banning off-duty conduct or participation in outside organizations
-Rules against making false or inaccurate statements
-Rules restricting speaking to the media on company’s behalf
Page 6
Name some rules that are unlawful to maintain.
-Confidentiality rules (re: wages, benefits, or working conditions)
-Rules against joining outside organizations
-Rules against voting on matters concerning the employer
Page 7
What is an HR Generalist?
An HR manager who is required to know understand all of the major personnel functions and how they interact with other business functions.
Page 7
What is an HR Specialist?
A member of the HR department who specializes in a particular HR function like staffing, health/safety, or employee relations.
Page 7
Know the layout of Dave Ulrich’s 2x2 model.
A) Processes (left side) vs people (right side)
B) Day-to-day operational issues (bottom) vs future/strategic issues (top)
-Role 1: Administrative expert (day-to-day; processes)
-Role 2: Employee Champions - safety, employee relations, etc. (people; day-to-day)
-Role 3: Strategic partner - cultural image of HR (future issues; processes)
-Role 4: Change agent - manages organizational designs, performance development (people; future issues)
Define “Advisory Role” and give some examples
Exists when the relationship between HR and the line managers is one of providing advice and counsel, and when the authority for deciding what to do is shared. (Advice regarding discipline/grievance issues, performance problems, job redesign, etc.)
Page 10
Define “Control Role” and give an example.
Exists when the HR department has the authority to make decisions regarding personnel policies and procedures that line managers are required to follow. (Ex.: When HR tells another department to achieve its affirmative action program objectives; a.k.a. “Functional Authority”.)
Page 10
Define “Service Role” and give some examples
Exists when the HR department provides assistance to line managers according to their requests. (Recruiting, record keeping, orientation training, etc.)
Page 10
Define “Balance Sheet”
A statement of financial position that reports a company’s assets, liabilities, and equity as of a specific point in time, such as the end of a company’s fiscal year. (Assets = Liabilities + Equity)
Page 11
Define “Income Statement”
A report of a company’s income, expenses, and profits over a certain period of time.
Page 11
Define “Budget”
A plan that describes expected income and expenses over a period of time.
Page 11
Define “Cash Flow Statement”
A report of the flow of cash in and out of a company, showing changes in the balance sheet and how these changes affect the availability of cash.
Page 11
What are some important functions of a budget?
-Control income
-Establish priorities
-Set performance goals
-Assign responsibilities
-Allocate the use of resources
-Forecast future needs
-Motivate individuals and organizational units
-Improve efficiency
-Monitor and evaluate performance
Page 11-12
Describe “Incremental Budgeting”
The previous budget is basis for the new budget, and an incremental allocation (usually a percentage) is added to/subtracted from the budget across the board.
Page 12
Describe “Top-Down Budgeting”
Upper-level management sets the budget, and gives lower-level managers direction on how to allocate the budgeted resources within their areas.
Page 12
Define “Bottom-Up Budgeting”
Lower-level managers determine the budgets for their individual departments, and submit them for review/approval.
Page 12
Describe “Activity-Based Budgeting”
The organization determines which activities need to take place to meet its goals, and the costs associated with these activities determine the budget.
Page 12
Describe “Formula-Based Budgeting”
Budgets are calculated using a pre-determined formula based on factors like enrollment. (Popular method used in higher education.)
Page 12
Describe “Zero-Based Budgeting”
Budgets start from zero, and managers are required to identify every activity and justify every expense.
Page 12
Define “Competitive Advantage”
What an organization does better than its competitors.
Page 13
Define “Strategy”
The goals and policies designed to achieve competitive advantage in a particular marketplace. (I.e. A company’s game plan.)
Page 13
Define “Vision Statement”
What the company imagines (in detail) that it will become if successful. (If successful, what would the organization look like in ten, twenty years?)
Page 14
Define “Mission Statement”
A statement that explains why an organization exists, whom it serves, and why it should continue. (What’s the organization’s purpose? What business is it in? What values will guide it?)
Page 14
Define “Purpose Statement”
It explains what the organization seeks to accomplish and why it deserves the commitment of members and the support of the public. (Why does your organization exist? How is the world going to be different as a result of the company?)
Page 14
Define “Business Statement” and give a couple of examples.
A statement that identifies the organization’s business activities or functions. (Essentially, “What business are you in?) Examples: A ranch’s business statement might be “To produce and transport Alfalfa”; a construction firm’s business statement might be “To construct affordable housing for first-time homeowners.”
Page 15
Define “Values Statement”
Statements that explain the values and beliefs that members hold in common and try to follow.
Page 15
What are five things that useful mission statements should do?
-Identify the purposes of the organization.
-Differentiate the firm from its competitors.
-Define the company’s business (activities and products).
-Identify/explain the firm’s relationships and obligations to all relevant stakeholders.
-Explain how it will contribute to society and improve lives.
Page 15
Name four important characteristics of generic organizational strategies.
-They promote the org.’s mission and goals.
-They have a long-term focus.
-They have plans of action needed to achieve its mission/goals.
-They recognize external factors, especially competitors’ reactions.
Page 16
Define the “SWOT Method”.
With regard to the strategic management process: -Strengths -Weaknesses -Opportunities -Threats Page 16
What are the six steps of the strategic management process?
- Identify the mission and decide, “What business are we in?”
- Environmental scanning (identifying opportunities and threats)
- Analyze the organization’s strengths and weaknesses.
- Formulate an overall generic strategy for the organization to follow.
- Implement the strategy effectively
- Evaluate/monitor the effects of the new strategy to maintain a competitive advantage
Page 16-17
Define “Environmental Scanning”.
Examining the demographic and social forces influencing the long-term composition of the labor force and the future availability of employees.
Page 16
Define “Core Competency”.
Unique skills or resources that give an organization a competitive edge.
Page 17
Name some common components found in most business plans.
-Executive summary
-Description of the company, and its history, products/services
-Market analysis and marketing plan
-Description of management team
-Budget and financial analysis of resources and needs
-Operations plan describing responsibilities and actions with timetables and realistic, measurable goals
Page 19
What are the three major purposes of budgets?
- Coordination and integration
- Motivation
- Control and evaluation
Page 20
Define “Coordination and Integration”.
The budgeting process of establishing objectives in advance and identifying the steps by which they will be accomplished.
Page 20
Define “Motivation”.
The result of goal setting and feedback, which are involved in the budgeting process.
Page 20
Define “Control and Evaluation”.
When budgets are used to monitor a business’s performance.
Page 20
Define “HR Metrics” (a.k.a. “Workforce Analytics).
Specific indicators that are used to measure progress of achievement with respect to people (how they are recruited, trained, retained, terminated, etc.).
Page 20
Name some frequently used employee measures.
-Job satisfaction and measures of company morale
-Organizational commitment and involvement
-Turnover, retention rates
-Absenteeism rates/sick leave days taken
-Grievance rates
-Exempt terminations (as a percentage of exempt employees)
-Nonexempt terminations (as percentage of nonexempt employees)
Page 21
Name some frequently used productivity measures.
-Input/output ratios
-Revenue per employee
-Cost per employee
-Units produced per employee
-Profit per employee
-OSHA incident rate
-Cost of a new hire
-Time fo fill vacant positions
-Worker Compensation cost per employee
Page 21
Name some frequently used HR process measures.
-HR department expense (as a percent of operating expenses)
-Ratio of total employees to HR employees
-Compensation (as a ratio of company operating expenses)
-Benefits (as a percent of payroll or operating expenses)
-Training expense per employee
-Cost per hire
-HR department expenses per employee
-Compensation (as a percentage of revenue)
-Retiree benefit cost per retiree
-Ratio of job offers made to acceptances - yield ratios
Page 21
What is the equation for “Revenue Factor (Revenue per FTE)” (Full-Time Equivalent employees)?
Revenue / Total Number of FTE
Page 22
What is the equation for “Revenue per Labor Costs”?
Revenue / Total Labor Costs
Page 22
What is the equation for “Human Capital ROI”?
[Revenue - (Operating Expense - (Compensation cost + Benefits Cost))] / (Compensation cost + Benefit cost)
Page 22
What is the equation for “Human Capital Value Added”?
[Revenue - (Operating Expense - (Compensation cost + Benefit Cost))] / Total Number of FTE
Page 22
What is the equation for “HR Expense Factor”?
HR Expenses / Total Employees
Page 22
What is the equation for “Absence Rate”?
[(Number of days absent in the month) / (Average number of employees during the month) x (Number of workdays)] x 100
Page 23
What is the equation for “Turnover Rate”?
[# of separations during the month / Average # of employees during month] x 100
Page 23
What is the equation for “Cost per Hire”?
(External costs + internal costs) / number of hires
Page 23
What is the equation for “Turnover Costs per Employee”?
(Separation Costs + Replacement Costs + Training Costs + Lost Performance) / Number of Replacements
Page 23 -24
What is the equation for “Time to Fill”, and what is the average time-to-fill a position?
Total days elapsed to fill requisitions / Number hired
Average time-to-fill: 36 days
Page 24
What is the equation for “Training Investment Factor”?
Total Training Costs / Headcount
Page 24
What is the equation for “Health Care Costs per Employee”?
Total cost of Health Care / Total Employees
Page 24
What is the equation for “Employee Benefits as a Percent of Payroll”?
Total employer benefits payments / Total gross payroll
Page 24
What is the equation for “HR-to-Employee Ratio”?
(Total number of HR FTEs / Total Number of FTEs in the Organization) x 100
Page 24
Define “Human Resource Outsourcing”.
The practice of contracting with outside specialists to perform selected HR functions.
Page 25
What are three reasons why a company may outsource its HR functions?
- Outside experts can perform HR functions more efficiently, using economies of scale.
- Outside experts can use their expertise and a broader perspective to do the functions better.
- Outside experts are better prepared to keep up with technological and legal changes.
Page 25
What HR functions are commonly outsourced?
-Payroll administration
-Benefits administration
-Record keeping and information systems
-Retirement Counseling
-Outplacement and relocation
-Health and wellness programs
-Testing (drug, psychological, etc.)
-Training and development, (learning system outsourcing (LSO))
-Recruitment, (recruitment process outsourcing (RPO))
Page 25
Define “Professional Employer Organization (PEO)”.
A company that contracts with an employer to manage almost all HR functions by typically co-employing the company’s workers in a relationship in which the PEO is the employer of record (for tax purposes) while the client company directs the employees’ day-to-day activities.
Pages 25-26
Define “Employee Leasing”.
A company that contracts with an employer to manage almost all HR functions by typically hiring an employer’s employees and leasing them back to the employer.
Pages 25-26
What are some things that PEOs are typically allowed to do in their contractual relationships with employers?
-Co-employ workers and assume legal responsibility for certain HR functions for those workers
-Reserve right to direct/control employees and share the responsibility with the employer consistent with the employer’s responsibility for its product or service.
-Pay wages and employment taxes of the employees out of its own accounts
-Report, collect, and deposit employment taxes w/ state and federal authorities
-Establish/maintain a long term relationship with its employees
-Retain right to hire, counsel, fire employees.
Page 26
Define “HRIS”.
Human resource information system. A collection of information about the people working for the organization, usually stored in a computer-based system.
Page 27
Define “Enterprise Resource Planning” (ERP).
A computer-based system that integrates the various processes throughout a business, such as inventory control, order management, production, customer service, accounting, and HR.
Page 27
What are the major uses of an HRIS?
-HR planning
-Diversity reports
-Compensation reports
-Personnel research
-Training-needs assessment
Pages 27-28
What types of information need to be kept up-to-date in an HRIS?
-Employment applications
-Performance evaluations
-Personnel change notices
-Disciplinary actions
-Payroll data
Page 28
Define “Gap Analysis”.
A method that compares the current situation to the desired situation in order to identify the “gap,” or the changes required to reach the desired state.
Page 29
Define “Shared Services Model”.
An alternative to (or type of) outsourcing where HR functions are centralized at service centers to promote HR expertise and to deliver improved company wide services for large, diversified companies.
Page 29
What are some ways to making communications readable?
-Use simple language
-Keep sentences short (<20 words)
-Keep discussion of each issue to < 1 page
-Use wide margins on all sides
-Use graphics whenever it contributes to the explanation
-Keep the communications short (e.g. handbooks to < 30 pages)
Page 31
What are some suggestions for a technology use policy?
-Clearly state that all electronic communications are monitored; no privacy should be expected when using social media at work or on company-owned property.
-Explain that all employer-owned devices are to be used for business purposes; establish guidelines on inappropriate use.
-Explain that privacy of elec. communications can’t be ensured even with passwords, encryptions, etc.
-Establish limits of personal use of technology during work hours.
-Establish consequences of misusing technology; have employees sign acknowledgment of the policy.
-State that one’s personal devices may be wiped clean if terminated.
Pages 31-32
What five decisions are involved in creating an organization?
- Departmentalization
- Delegation of authority
- Coordinating mechanisms
- Division of labor
- Span of control
Page 34
Explain the difference between Functional and Product Departmentalization.
-Functional Departmentalization clusters jobs that are associated with performing a particular function (Accounting, Engineering, etc.)
-Product Departmentalization clusters jobs that work to create a particular product.
Pages 34-35
Define “Centralized Authority”.
When authority to make organizational decisions is held by top managers within the central office.
Page 35
Define “Decentralized Authority”.
When authority to make decisions is given to lower-level managers and supervisors.
Page 35
Define “Integrating Mechanisms”.
Methods for coordinating the activities of an organization that vary in the amount of discretion they allow members. Five methods range from direct supervision to mutual adjustment.
Page 36
What are the five different coordinating mechanisms for worker discretion?
- Direct supervision (supervisor tells workers what to do)
- Standardization of work processes (routine jobs like assembly line)
- Standardization of outputs (workers allowed some discretion as long as the output meets the required specifications)
- Standardization of skills (skilled/trained employees like EMTs)
- Mutual adjustment (salaried/professional jobs)
Page 36
Define “Division of Labor”.
The process of dividing work into specialized jobs that are performed by separate individuals.
Pages 36-37
Name five advantages of specialized labor.
- It increases proficiency by allowing the employee to perform the same repetitive activity.
- Less training is needed to master the job.
- Less time is lost going between different jobs.
- Special tools can be developed to partially or completely automate a certain task.
- Higher output quality.
Page 37
Define “Span of Control”.
The number of subordinates assigned to a supervisor.
Page 37
What four situational variables should be used to determine whether a larger span of control would be appropriate?
- Required amount of contact
- Level of subordinate education/training
- Ability to communicate
- Nature of the task
Page 38
Define “Matrix Structure”.
A blend of two different forms of departmentalization, usually functional and product departmentalization. Matrix structures create dual accountabilities in which workers report to two supervisors, usually a functional leader and a product manager.
Page 38
Define “Matrix Tax”.
The disadvantages of a matrix structure, which include increased role ambiguity, stress, and anxiety.
Page 39
Define “Culture”.
Organizational rules and beliefs that are relatively enduring and resistant to change.
Page 41
Define “Climate”.
Characteristics that are temporary and capable of being changed. (E.g. overall morale)
Page 41
Define “Organizational Climate”.
The characteristics describing an organization that are relatively visible and stable, but amenable to change. (E.g. employee attitudes)
Page 41
Define “Organizational Culture”.
The long-term shared beliefs of an organization.
Page 42
Define “Cultural Artifacts”.
Tangible cultural aspects that can be perceived with our senses, and that reflect the rules and beliefs of the organization’s culture. (E.g. behaviors, language, landscape, logos, furniture, rules that govern behavior in an organization, etc.)
Page 42
Define “Shared Norms”.
Situation-specific rules that are not typically directly visible but can be inferred from the organization’s cultural artifacts. (E.g. If most people report to work a few minutes late then it can be inferred that punctuality is not an important norm.)
Page 42
Define “Cultural Values”.
These are the collective beliefs, ideals, and feelings of members about the things that are good, proper, valuable, and right.
Page 42
What are the four criteria used to examine the usefulness of cultural values?
- Viable? (Feasible/do-able in the current business environment?)
- Balanced? (Is it just as important as other values?)
- Aligned? (Consistent with other values?)
- Authentic? (Do most people believe in it?)
Page 42
Define “Shared Assumptions”.
Assumptions that affect how people think about what happens in organizations.
Page 42
Define “External Adaption”.
How an organization responds to the external environment and the changes that occur in it. (What did the organization do to deal with a crisis? How has the organization changed its strategy, structure, technology, etc. to cope with external changes?)
Page 44
Define “Internal Integration”.
How an organization establishes and maintains effective working relationships among its members.
Page 44
What are six forces that maintain organizational cultures?
- Selection/retention of employees
- Allocation of rewards and status
- Reactions of leaders
- Rites and ceremonies
- Stories and symbols
- Reactions to crises
Page 44
Name and explain four things that leaders can do to increase their personal power and exert greater influence in an organization.
- Spend time on important activities. (Subordinates will know how important an activity is by how much time their leaders spends on it.)
- Change/enhance the setting. (New, more elaborate furnishings means the activity is more consequential and important.)
- Study and interpret history (how things were handled in the past when a similar situation arose).
- Establish a dominant value expressed in a slogan. (To help motivate others)
Page 45
What are the benefits of rites and ceremonies?
-To reward/recognize employees whose behavior reflects the company’s values
-To provide managers an opportunity to reinforce certain values and beliefs.
Page 45
Define “Organizational Myths”.
Significant stories that are told about an organization’s earlier years that impact the way members think about its history (symbolically speaking) even if they are not true. (E.g. Advice from well-tenured employees, etc.)
Page 45
What are the six steps suggested for changing an organization’s culture?
- Conduct a culture audit.
- Assess need for change.
- Unfreeze the current culture.
- Seek support from the cultural elite. (Get input from top management.)
- Implement an intervention strategy. (Make the necessary changes.)
- Monitor/evaluate
Page 47
What are the eight characteristics of an inclusive workplace?
- There is a welcoming workplace culture.
- Equality and human rights policies in force.
- All staff members aware of inclusive values.
- The workforce is representative of the local community/customers.
- All employees encouraged to develop and progress.
- Unnecessary hierarchies/occupational segregation - discouraged.
- The organization takes action to address tensions w/in workplace.
- Inclusive strategies fully supported/promoted by senior staff.
Page 48
Define “Sarbanes-Oxley Act”.
The law requires publicly traded companies and their independent auditors to demonstrate to the SEC that their numbers are accurate, and that they have processes in place to ensure accurate reporting.
Page 49
What are some of the SOX Act implications for HR?
-Section 301: Complaint system and an anti-retaliation statement are to be established/maintained, and are to be communicated to employees, customers, former employees, etc.
-Section 306: No insider trading, and at least 30 days advance notice to employees before blackout periods
-Section 402: No personal loans to members of the board of directors and executives
-Section 404: Annual reports to contain an internal control report of financial reporting, etc.
-Section 406: Anti-fraud code of ethics for executive officers
-Section 806: Whistle blower protection from retaliation
Pages 49-50
Define “Archive Data”.
The type of information contained in HR files.
Page 52
Define “Unobtrusive Measures” and give some examples of them.
Data that are collected in such a way that it does not influence how an employee behaves. (Usually data that the company already has on file)
-(Accident records, affirmative action records, disciplinary records, exit interviews, grievance reports, HRIS, insurance records, etc.)
Page 52
Define “Observations”.
An intrusive measure used to answer some research questions that cannot be answered through other means.
Page 53
Define “Hawthorne Effect”.
The effect that states that the process of observing an employee’s performance often causes the employee to behave differently.
Page 53
In conducting HR research, what four kinds of data are typically available?
- Archive Data
- Observations
- Interviews
- Questionnaires
Page 52
Define “Interviews”.
An HR research method in which broad questions can be asked to gain rich information, especially through focus groups, despite being a time-consuming method.
Page 53
Define “Questionnaires”.
An HR research method that is best-developed by asking questions that are relevant to issues that are most important to the majority of workers.
Page 53
Define “Reliability”.
The consistency of the measure. (E.g. Are the questions on a questionnaire clear?)
Page 53-54
Define “Validity”.
The quality of measure that refers to research instrument’s ability to actually measure or predict what it intends to measure or predict. (E.g. Does a questionnaire measuring company commitment really measure what it is supposed to measure? Are people with high scores more loyal? Do the people who leave have lower scores? Are the scores related to the willingness of employees to defend the company against public criticism?)
Page 54
Define “Normal Distribution”.
The most common frequency distribution in which the scores tend to be concentrated near the middle with fewer scores near the side ends of the distribution (forming a bell-shaped curve).
Page 54
Define “Functional Authority”.
The authority exercised by the HR department when it is authorized to establish policies and procedures and monitor compliance with them. (A.k.a. the “Control Role”)
Page 10
Define “Staff Authority”.
The right and responsibility to advise/assist those who possess line authority. (A.k.a., the “Advisory/Counseling Role”.)
Page 10
What are the major uses of a Human Capital Management System (HCM)?
- HRIS
- Onboarding
- Employee performance
- Position control
- Succession
- Salary planning
- Global Support
- Analytics
What are the major uses of an HR Management System (HRMS)?
- HRIS
- HCM
- Payroll processing
- Time and labor
Define the details of the “Civil Rights Act of 1964, Title VII”.
-The act that prohibits discrimination in employment on the basis of race, color, religion, sex, or national origin.
-Prohibits terminating or refusing to hire someone because of these factors.
-Prohibits limiting, segregating, or classifying employees/applicants for employment opportunities because of these factors.
-Prohibits employment discrimination in training.
-Requires employers compile/maintain records used to determine if unlawful employment practices are being/have been used.
Page 68-69
Define “Bona Fide Occupational Qualification” (BFOQ).
Employers are allowed to discriminate on the basis of religion, sex, or national origin only when these factors are necessary for the operation of a business; the same applies for advertisements and recruiting activities.
Pages 68, 69
What types of employers does Title VII apply to?
It applies to: -Employers with 15+ employees -Employment agencies -Labor organizations -State/local governments -Educational institutions Page 68
Define “Equal Employment Opportunity Commission” (EEOC).
A government agency created by the 1964 Civil Rights Act; it enforces Title VII of the Act, its amendments, and other Acts pertaining thereto.
Pages 68, 73
Explain the six changes made by the Civil Rights Act of 1991.
- Shifting the burden of proof: The burden of proof returns to the employee after a case of discrimination has been demonstrated.
- Particularity: If an applicant claims that the hiring process is discriminatory they must identify the particular discriminatory practice.
- Foreign Practices: Extends protection to U.S. citizens working for U.S. companies abroad unless U.S. laws conflict with local laws.
- Race Norming: Prohibits adjusting test scores, using different cut-off scores, or altering results of employment-related tests based on race, sex, religion or nat. origin.
- Motivating Factors: If a complaining party can demonstrate that any illegal factor (sex, race, etc.) was a “motivating factor” then the employer is in violation of the law.
- Remedies: Jury trials with possibility of punitive/compensatory damages.
Page 69
Per the Civil Rights Act of 1991, what are the monetary limits for punitive/compensatory damages resulting from an employment discrimination lawsuit?
For employers with:
- 15 - 100 employees: $50k
- 101 - 200 employees: $100k
- 201 - 500 employees: $200k
- 501+ employees: $300k
Define “Business Necessity”.
A justification for a business practice that has a discriminatory effect, which can be justified by showing that:
-It is necessary to the safe, efficient operation of the business
-It effectively fulfills the purpose it is supposed to serve
-There are no alternative policies/practices that would serve the same purpose with less discriminatory impact
Page 70
Which factor is never a legitimate BFOQ?
Race is never a legitimate BFOQ.
Page 70
Define “Disparate Treatment”.
A legal foundation for charges of illegal discrimination that is available when employment actions are improperly based on disability, age, race, sex, or national origin. Evidence of a discriminatory motive must be shown.
Page 70
Define “Direct Evidence of Discrimination”.
Evidence that demonstrates an intent to discriminate. (E.g. A statement saying that members of a certain ethnic group are ineligible for employment or advancement.)
Page 70
Define “Cohort Analysis”.
A comparison of the treatment of similarly situated individuals or groups. (E.g. An employer accused of laying off a minority employee should use a cohort analysis to prove that all similarly situated employees were also laid off.)
Page 70
Define “Disparate Impact”.
To have the effect of discriminating. A recruitment or selection procedure is said to have a disparate impact if the activity tends to significantly reduce the number of minorities or females who are accepted for employment; it’s a legal basis for pressing charges of discrimination.
Pages 70-71
Name some examples of “Racial Harassment”.
-Racial epithets
-Derogatory comments
-Verbal harassment
-Graffiti
-Racist jokes
-Name-calling
Page 71
Define “Glass Ceiling”.
Attitudinal and organizational barriers that inhibit the career advancement of women.
Page 71
Per the Supreme Court, accommodation for religious observances should not require an employer to…?
- Sacrifice the rights of other workers to accommodate another employee
- Breach a collective bargaining agreement to provide benefits of special needs that would not be equally enjoyed by others
- Suffer a loss in work unit efficiency in their efforts to accommodate
- Provide more than “de minimus” action (e.g. pay overtime to others, etc.)
Page 73
What are the powers of the Equal Employment Opportunity Commission?
It has the jurisdiction to: -Investigate discrimination charges -Attempt to reconcile the parties -Bring suit in federal court on behalf of an aggrieved employee -Issue notice of “right to sue” Page 73
Define “Right to Sue”.
A notice issued by the EEOC to an aggrieved employee, authorizing the aggrieved employee the ability to sue a company for his/her discrimination claim.
Page 73
Explain the statute of limitations for filing a Title VII claim.
An employee has 180 days to file a discrimination grievance, but it can be extended to 300 days if their state has an agency that also has a law prohibiting the same type of discrimination.
Page 74
Define “Tolling”.
With regard to filing discrimination grievances, tolling refers to the extended amount of claim filing time given to cases in which there is an ongoing pattern of discrimination occurring over an extended period.
Page 74
How does the Lily Ledbetter Fair Pay Act impact the filing of discrimination claims?
The Act resets the 180/300 day clock every time a new paycheck is issued.
Page 74
If an employer is found guilty of discrimination, what decrees for remedies can a court call for?
-Back-pay
-Reinstatement (or promotion if it was denied)
-Stopping of discriminatory practices (not using a testing process, etc.)
-Creation of special recruitment/training programs
-Payment of attorney/court fees
Page 75
Define “Rightful Place”.
When an employee who is the victim of discrimination is made whole, and is restored to his/her job, seniority level, and salary level that they would otherwise have held.
Page 75
What are the common elements of “Make Whole Relief”?
These include: -An award of the position originally denied -Back-pay with interest -Retroactive seniority Page 75
Name some suggestions for properly handling EEOC complaints?
-Never ignore the charges
-Save relevant documents
-Avoid retaliation
-Maintain confidentiality
-Prepare a position statement
-Take advantage of mediation when appropriate
Pages 75-76
What three events must occur for someone to be an “applicant”?
- The employer has acted to fill a particular position.
- The individual has followed the employer’s standard procedures for submitting an application.
- The individual has indicated an interest in the particular position.
Page 76
For government contractors, what four criteria are used to define an internet applicant?
- Individual submits electronic expression of interest in employment
- Contractor considers the individual for employment
- Individual’s expression of interest indicates that he/she has the basic qualifications for the position
- The individual at no point withdraws from the selection process
What types of data should an employer maintain on each applicant?
-Name, sex, and race
-Job applied for
-Date of the application
-The EEO category of the job
-The hiring decision (if rejected, reason should be listed, and the step in selection process when it occurred should noted)
-Individual’s test/interview scores - recorded
-Document how person was referred to the company
Page 76
How long should employers retain employment/termination records?
-Private employers - one year from the date of the HR action
-State/local governments/educational institutions - two years
Page 76
Define “Adverse Impact”.
A selection procedure is said to have an adverse impact if the selection rates for any minority or gender groups are less than 4/5ths of the selection rate for the highest group.
Page 76
Define the “Four-Fifths Rule”.
The selection procedure guideline used by the EEOC that says that a selection procedure is biased if the selection rate for any protected group is less than four-fifths of the selection rate for any other protected group.
Page 76
What are employers expected to do when adverse impact exists?
Either:
-Show that the selection process is valid (related to job performance)
-Stop using the selection process
-Find an alternative process that has less discriminatory effect
Pages 76-77
Define “Adverse Action”.
An action taken to try to keep someone from opposing a discriminatory practice or from participating in a discrimination proceeding. (E.g. termination, refusal to promote, unjustified negative evaluation, etc.)
Page 77
Define “Covered Individuals”.
People who have opposed unlawful practices, participated in proceedings, requested accommodations related to employment discrimination based on race, color, sex, religion, national origin, age, or disability.
Page 77
Define “Protected Activity”.
Includes:
1. Opposition to a practice believed to be unlawful discrimination
2. Participation in an employment discrimination proceeding
Page 77
Define “Executive Orders”.
Orders issued by the President of the United States.
Page 77
Define “Order Number 4”.
-The common name for Executive Order 11246
-Prohibits employment discrimination by federal government contractors and subcontractors
-Requires government contractors to develop affirmative action in hiring/promoting minorities, women, veterans, etc.
Page 78
Define “Office of Federal Contract Compliance Programs” (OFCCP).
A government agency in the Department of Labor that reviews the affirmative action programs of government contractors and monitors their compliance.
Page 78
What are the OFCCP’s strategies?
- Prioritize enforcement by focusing on the worst offenders.
- Encourage employers to do self-audits of their practices.
- Use every available resource to protect as many people as possible from discrimination.
Page 78
Define “First-Tier Subcontractor”.
A subcontractor holding a subcontract with a prime contractor.
Page 78
What does Order Number 4 require with regard to contractors?
Contractors, and their first-tier subcontractors who have 50+ employees and $50k or more in contracts are to develop a written affirmative action program, and establish equal employment opportunity goals.
Page 78
Define “Affirmative Action Program”.
A written document that defines the good faith efforts an employer is making to hire/promote minorities, women, Vietnam era veterans, disabled veterans, and people with disabilities.
Page 78
Define “Utilization Analysis.”
A comparison of the percentage of minorities and women in each job group with their respective availability in the surrounding labor force.
Page 78
Define “Placement Goals”.
Targets that a contractor establishes to address underutilization in any job group and to measure progress toward reaching its affirmative action objectives.
Page 78
Define “Reverse Discrimination”.
Where preferential treatment is shown females and minorities, often to achieve an affirmative action goal.
Page 79
Define “Conciliation”.
An informal process of agreement used by the EEOC for resolving charges of discrimination.
Page 75
Define “Suboptimizing”.
One of the disadvantages of Functional Departmentalization, which results from a lack of communication/cooperation between departments.
Page 35
Define the details of the Age Discrimination in Employment Act (ADEA).
-Protects those who are over 40 from age discrimination.
-Applies to private companies with at least 20 employees.
-Expressly excludes executives/high policy-making employees from coverage, allowing them to be forced into retirement at 65, provided a) an executive has held the position for at least two years immediately prior to retirement, and b) must be entitled to a retirement income of at least $44k/yr exclusive of SSI benefits.
Page 79
What are the few situations in which employers are allowed by ADEA to make adverse decisions against workers over age 40?
-When age is a Bona fide occupational qualification (e.g. hiring a teen model)
-When the decision is based on a valid seniority system (e.g. A younger worker has more seniority in reduction of force)
-When disciplinary action/discharge is based on “good cause”
-When the action is based on “reasonable factors other than age,” like labor costs or budgetary restrictions.
-Must prove “but for” causation (i.e. employee must prove that age was the ONLY reason for employer to take adverse action).
Page 80
What guidelines should Early Retirement Programs follow?
-ERISA coordination (Employees should receive a benefits description summary plan)
-Eligibility requirements (E.g. Managers with 20+ years of service, etc.)
-Incentive (Fair and sufficient to attract enough employees)
-Employee acceptance (Participation must be “knowing and voluntary”)
Page 80-81
What are the criteria required by the Older Workers Benefit Protection Act, regarding the signing of releases?
- Release must be understandable
- Must specify that it covers claims potentially arising under the ADEA, but it cannot require employees to waive their rights to file discrimination with EEOC
- Must exclude from coverage any claims arising after the signature date
- The consideration provided for signing release must be in addition to anything else the employee might expect to receive (no bribes or coercion.)
- Must advise the employee to consult with an attorney about its terms
- Employee must be given at least 21 days to consider signing (45 days if a group termination); must be allowed up 7 days to revoke release after signing it
- For a group termination, the person must be informed of the class affected, eligibility factors, and job titles/ages of those selected for and (excluded from) the program.
Page 81
Define “Age Harassment”.
Demeaning comments and actions directed toward older employees, such as age-related jokes, sarcasm, and derisive labels.
Page 81
Define “Constructive Discharge”.
When an employer intentionally creates a work environment so intolerable as to compel a reasonable employee to quit, and actually results in the employee quitting.
Page 81
Define the details of the Vocational Rehabilitation Act as Amended.
-Prevents discrimination against those with a handicap
-Applies to government contractors/subcontractors with 50+ employees and $50k+ in contracts; should have written affirmative action plans
-Applies to employers who receive federal funding
Page 82-83
Define the details of the Vietnam Era Veterans Readjustment Assistance Act.
-Prohibits discrimination against Vietnam Era veterans in general.
-Applies to federal contractors w/$25k+ in contracts
-Employers w/$150k+ in contracts and 50+ employees to take affirmative action in hiring/advancing qualified and/or disabled Vietnam Era veterans
-Jobs must be listed with nearest state employment office, except for top management jobs, positions filled from within, or jobs lasting less than three days
Page 83
How does the Americans with Disabilities Act apply to employers?
-Protects people with disabilities from discrimination
-Applies all employers with 15+ employees, and requires them to make reasonable accommodations to hire disabled people
Page 83
Define “Person with a Disability”.
An individual who:
1. Has a physical or mental impairment that substantially limits at least one major life activity
2. Has a record of such an impairment, such as cancer or heart disease
3. Is regarded as having such an impairment, such as being a FORMER drug addict or alcoholic.
Page 83-84
Define “Direct Threat”.
-A disease or physical condition that poses a significant risk to the health/safety of the individual or others. (E.g. Highly contagious disease among food preparation workers)
-The ADA does not protect people who pose a direct threat unless reasonable accommodations can reduce the threat.
Page 84
Define “Reasonable Accommodations”.
-Modifications in the job or changes in the work setting that make it possible for an individual with a disability to work successfully
-These changes should not be excessively expense nor should they interfere with normal operations.
-(E.g. Special training/assistance for the disabled, special training for coworkers who interact with the disabled)
-“Good faith interactive dialogue” should be used between employer and disabled employee. (Consulting with the disabled)
Page 84
Define “Otherwise Qualified”.
A disabled individual who is capable of performing the essential functions of a job if necessary barriers created by their disability are eliminated.
Page 85
Define “Essential Functions”.
The major tasks, duties, and responsibilities for which the job exists; they cannot be modified or eliminated without substantially changing the nature of the job.
Page 85
What kinds of questions may an employer ask a candidate during an interview with regard to any disabilities he/she may have?
-Employers may only describe the essential functions of the position, and then ask the applicant if he/she can perform them.
-Candidates are responsible for requesting reasonable accommodations.
Page 85
Once making a conditional job offer, are employers allowed to conduct pre-employment medical exams, or ask an applicant medical-related questions?
Yes, provided that all other candidates who receive job offers are treated the same way.
Page 85
Define “Genetic Information Nondiscrimination Act” (GINA).
-Prohibits discrimination against employees based on their or their family’s genetics/health history such as cancer, heart disease, etc.
Page 86
Define “Uniformed Services Employment and Re-Employment Rights Act” (USERRA).
-Prohibits discrimination against employees who serve in any branch of the military, National Guard, commissioned corps of the Public Health Service, or any other category designated by the President in time or war/emergency.
-Prohibits employers from denying employment, re-employment, retention in employment, promotions, etc. because of service.
-Applies to voluntary and involuntary service, and time spent in duty, training, physical exams, etc.
Page 86
Which employers are subject to USERRA?
-Applies to ALL employers regardless of size or other limiting criteria.
Page 86
Under which conditions does USERRA not apply, or protect employees who are service members?
-An employer is NOT required to re-employ a service member if it’s impossible or unreasonable. (E.g. a plant closed, employee’s department was eliminated.)
-An employer is NOT required to re-employ a service member if his/her job is a temporary position (e.g. holiday/seasonal position).
-USERRA does NOT protect service members who are dishonorably discharged.
-If injured in military, they can be given a job that they CAN do.
Page 86
Define “Immigration Reform and Control Act” (IRCA) as Amended.
-Prohibits employers from hiring undocumented workers.
-Requires all new employees to complete and sign a verification form (I-9) to certify their eligibility for employment.
Page 87
What two types of verification are required by the I-9 Form?
-Proof of identity (Driver’s license, state ID card)
-Proof of employment eligibility (Social security card)
(Passport = proof of both)
Page 87
When should I-9 Forms be completed?
-W/in 3 days of date of employment (for employers to complete section 2); section 1 must be completed by employee on 1st day.
-Must be completed BEFORE work is started for jobs lasting less than three days.
-If necessary, employers may file for time extensions.
Page 87
How long should employers retain I-9 forms?
Employers are required to retain I-9 Forms for three years, or for one year passed the employment of the individual, whichever is longer.
(I.e. If they worked for less than 2 years, keep the form for three years after the date you entered in the First Date of Employment field. If they worked for more than 2 years, retain their form for one year after they stop working for you.)
Page 87
How may I-9 Forms be stored?
-Printed format
-Electronic format (with enhanced privacy/security protection)
-In a separate Form I-9 file or with the rest of an employee’s records.
Page 87
What is the legal penalty for employers who unlawfully hire an undocumented worker?
-A maximum of $21,563 for a third offense.
Page 87
What is the legal penalty for failing to comply with the recording-keeping provisions of IRCA?
-A maximum of $2,126 for each individual, regardless if he/she has the right to work.
Page 87
Name some documents that establish both identity and employment authorization.
-U.S. Passport book/card
-Permanent Resident Card or Alien Registration Receipt Card (Form I-551)
-Foreign passport that contains a temporary I-551 stamp or temporary I-551 printed notation on a machine-readable immigration visa
-Employment Authorization Document that has a photo (Form I-766)
-For non-immigrant alien authorized to work for a specific employer incident to status: a foreign passport w/ Form I-94 or Form I-94A bearing the same name as the passport and containing an endorsement of the alien’s nonimmigrant status, as long as the period has not yet expired and the proposed employment is not in conflict with any restrictions or limitations identified on the form
-Passport from the Federal States of Micronesia (FSM) or the Republic of the Marshall Islands (RMI) with Form I-94 or Form I-94A indicating nonimmigrant admission under the Compact of Free Association Between the United States and the FSM or RMI.
-H-1B visas for temporary foreign workers; cannot displace local workers
Pages-87-88
Name some documents that establish identity.
-Driver’s license/federal/state/local government ID card that contains: photo, name, DOB, sex, height, eye color, address
-School ID card with photograph
-Voter’s registration card
-U.S. Military card/draft record
-Military dependent’s ID card
-U.S. Coast Guard Merchant Mariner Card
-Native American tribal document
-Canadian driver’s license
-For minors: school record/report card, clinic/doctor/hospital record, day-card/nursery school record
Page 88
Name some documents that establish employment authorization.
-Social Security Account Number card provided it does not specify that the issuance of the card doesn’t authorize employment in the U.S.
-Birth certificate issued by Department of State
-Original or certified copy of a birth certificate issued by a State, county, etc. that bears an official seal
-Native American tribal document
-U.S. citizen ID card
-ID card for Use of Resident Citizen in the United States
-Employment authorization document issued by the Dept. of Homeland Security
Page 88
What is E-Verify?
-An internet-based system established by the federal government to simplify the process of verifying an employee’s employment eligibility
-It provides either an employment authorization or a tentative non-confirmation (TNC)
Pages 88-89
What is a TNC, and what should an employer do in the event of one?
-A tentative nonconfirmation (TNC) indicates a mismatch in the E-Verify system. If this occurs, an employer should notify the employee of the TNC, and allow the employee to correct any errors or typos.
-Employees will receive a notification of the mismatch directly from the USCIS via email if they provided an email address on their I-9 Form. Employers must enter the email address from the I-9 Form into E-Verify.
Page 89
Define “Skills Inventory”.
The database of employees’ skills and knowledge, which is maintained in the company’s HRIS for making placement/promotion decisions.
Page 91
What information is typically useful in an employee profile?
- Present job category
- Skills/knowledge/experience
- Educational level (degree, certificates)
- Geographical location (if a global/decentralized company)
- Length of service
- Retirement plans
- Time in current position
- Potential for development/interest in promotion
- Wage/salary history
- Performance rating/supervisor evaluations
- Attendance record
- Disciplinary actions
Page 92
What information should be kept in an HRIS for research and EEOC reporting purposes?
-Information regarding each employee’s age, race, religion, sex, national origin, marital status, and number of dependents.
Page 92
What type of information should NOT be included in the HRIS?
Information that is:
-Irrelevant to the organization’s strategic business plan
-An invasion of personal privacy
Page 92
What are the reasons for turnover?
- Retirement
- Death/disability
- Layoff
- Discharge
- Quits
- Promotions to another division
Page 92
What are the major activities involved in succession planning?
- Reviewing information about managerial candidates
- Determining whether a candidate is promotable/competent
- Determining requirements for the position
- Identifying most likely replacements for each management job
- Initiating developmental activities for promising candidates (grooming/training programs, special projects, etc.)
Page 93
Define “Turnover Rate”.
The percentage of employees to leave the organization during a given period of time.
Define “Replacement Chart”.
An organizational chart showing the employees who hold various positions and their most likely replacements.
Page 94
Define “Career Pathing”.
The development of a sequential series of career activities that an individual might pursue during his or her career.
Page 95
Define “Promotion from Within”.
When vacancies in management positions are filled by promoting lower-level managers.
Page 92
Define “Dual Career Ladders”.
Managers can move up two career ladders simultaneously. Moving up the managerial ladder = greater power/decision-making authority, and moving up the technical ladder = greater autonomy in practicing the profession.
Page 95
Define “Bumping”.
The practice that allows senior employees whose jobs are eliminated to “bump” less senior employees and take their jobs.
Page 96
Define “Attrition”.
A reduction in the number of personnel caused by failing to replace people who leave.
Page 96
Define “Shared Work”.
A strategy that allows employers to reduce everyone’s hours and wages and receive partial unemployment benefits to supplement their lost wages.
Page 97
Define “Rolling Layoff.”
A process in which workers rotate in and out of unemployment.
Page 97
Define “Outplacement”.
The services that are provided to employees who are terminated because of corporate restructuring; these may include personal counseling, resume preparation assistance, job interview coaching, etc.
Page 98
Name some steps that organizations can take to minimize the loss of employee loyalty during downsizing.
- Be honest and straightforward about the real issue.
- Explain what’s being done and why.
- Make cuts consistent with historical performance criteria.
- Create a program to help terminated employees find new employment.
- Communicate openly; put central ideas in writing to make them clear.
- Make and communicate the strategies being made to prevent layoffs from occurring again.
- Establish contingency funds and encourage employee participation to minimize the need for distrust.
Define “Tax Equity and Fiscal Responsibility Act” (TEFRA).
The Act that officially recognized the practice of employee leasing, in which companies are allowed to exclude leased employees from their pension plans if the leasing company includes them in its pension plan.
Page 99
What is the primary advantage of employee leasing?
It reduces the costs and tasks associated with HR services.
Page 99
What is the primary disadvantage of employee leasing?
Executives don’t like the idea of giving up control to a third party.
Page 99
What types of firms are ideally suited for employee leasing?
-Firms with 50 or fewer people.
-Non-profit organizations.
Page 99
Define “Job Analysis”.
The analysis of jobs within a company that produces a job description or a job specification.
Page 101
How does a job evaluation differ from a job analysis?
A job analysis focuses on determining a job description/specification, whereas a job evaluation focuses on how much money the job holder should be paid for performing the job.
Page 101
When are job analyses typically performed?
- When the organization is first started, and the job-analysis program is initiated for the first time
- When a new job is created
- When a job is changed significantly as a result of new methods, procedures, or technology
Page 101
Name some of the major uses of job analysis information.
-HR planning (used to develop the job categories)
-Recruiting (used to describe job openings, advertise new jobs)
-Selection (used to identify skills, etc., that serve to determine which candidates to select)
-Orientation (used to tell employees what activities must be performed)
-Evaluation (used identify the standards, perf. objectives that employees are evaluated against)
-Compensation (used to eval. job worth, and aid in developing wage structure)
-Training (used to assess training needs by identifying the activities that employees ought to be able to perform)
-Discipline (used to identify standards of acceptable performance)
-Safety (used to identify safe working procedures)
-Job redesign (used to analyze characteristics of a job that need to be changed in job redesign projects)
-Legal protection (used to identify the essential functions that people with disabilities must be able to perform; can also protect an org. in other disputes like unemployment compensation, etc.)
Page 101-102
What are the objectives that competency models are expected to facilitate?
-Communication of industry needs
-Career exploration and guidance
-Career paths, ladders, and lattices
-Workforce planning
-Curriculum development and evaluation
-HR services to business
-Certification and Licensure
Page 102
Define “Job Description”.
The description of the duties, responsibilities, working conditions, and reporting relationships contained in a job.
Page 103
What are the major items included in a job description?
- Identification (Job number, title, department, etc.)
- Job Summary
- Duties and responsibilities - essential functions, non-essential functions
- Job specifications
Page 103
Define “Essential Functions”.
The major tasks, duties, and responsibilities of a job which are the reason the job exists, and cannot be changed without substantially changing the nature of the job.
Page 103
Define “Non-Essential Functions”.
Tasks that could be modified/re-assigned to others without changing the core nature of the job.
Page 103
Define “Job Specification”.
A listing of the minimum knowledge, skills, education, experience, and abilities required to perform a job.
Page 104
The information contained in a job specification typically falls into one of which three categories?
- General qualification requirements (experience, training, etc.)
- Educational and professional requirements
- Knowledge, skills, and abilities
Page 104
Define “Dictionary of Occupational Titles” (DOT).
A dictionary consisting of more than 13,000 job descriptions compiled by the Department of Labor.
Page 104
Define “Job Identification”.
A label or occupational code number associated with each job; each job in the Dictionary of Occupational Titles has a unique nine-digit identification number.
Page 104
Define “Occupational Information Network” (O*NET).
An internet database designed to replace the Dictionary of Occupational Titles (DOT).
Page 104
For HR managers, what are the major benefits that O*NET provides?
-It has more than 275 standardized descriptors of skills, tasks, etc.
-ONET Questionnaire is available for companies to use to apply ONET descriptors to their own particular situation.
-Its info. can be used to find skill sets to match jobs with the right applicant.
-Its info. and tools can be used for developing training materials.
-Its tools and info. can help to define success factors for promotion/advancement.
-Its info can be used for developing wage and compensation systems.
Page 105
What four methods can be used to gather job analysis information?
- Observations
- Interviews
- Questionnaires
- Employee Recordings
Page 105
What’s one disadvantage of using the observation method to analyze a job?
-Jobs that involve a lot of thinking (professional jobs, etc.) are difficult to analyze, based upon behavior.
Page 106
When interviewing an employee, what useful question should you ask him/her to describe the skills and abilities required of their job?
-“If someone had to replace you, what would he/she need?”
Page 106
Define “Position Analysis Questionnaire” (PAQ).
A standardized questionnaire containing 195 items that are used in a job analysis to create a job description.
Page 106
What are the six major categories of a job that a PAQ measures?
- Information input (Where does the worker get the info used in doing the job?)
- Mental processes (What reasoning, decision-making, etc. involved in the job?)
- Work output (Physical activity in the job? Tools/devices used?)
- Relationships with others
- Job context (In what physical/social context is the work done?)
- Other job characteristics (What other activities, etc. are relevant to the job?)
Page 107
What is the primary use of the information obtained in a PAQ?
-It’s useful in making salary comparisons (between occupations, companies, or even between males and females)
Page 107
Define “Functional Job Analysis” (FJA).
It assumes that all jobs involve basic activities associated with data, people, and things, and that these are the important dimensions for evaluating every job.
Page 108
What are the two sections of a functional job analysis?
-Performance Standards and Training Requirements
-Specific job instructions, reasoning/judgment, mathematical ability, and language abilities
Page 108
What are some examples of “employee recordings”?
-Time log
-Daily diary
-Documenting activities
Page 108
Define “Employment Branding”.
The process of developing and projecting an image that defines a company as an outstanding employer.
Page 110
Define “Employee Value Proposition” (EVP).
A statement that describes what a company has to offer its employees compared to other places of employment.
Page 110
What things should a company’s employment brand and EVP do?
-Communicate its culture, values, and objectives; build the public’s image of the organization.
-Provide an honest picture of the company’s work environment.
-Tie the company’s employment brand to its product brand.
Page 111
What are the steps of the recruiting process?
- Formulating a recruiting strategy
- Searching for applicants
- Screening applicants
- Maintaining an applicant pool
Page 111
Define “Employee Requisitions”.
An authorization to recruit a new employee to fill a job opening.
Page 111
Define “Yield Ratios”.
Ratios that show the number of applicants at one stage of the recruiting process who move on to the next stage.
Page 112
Define “Quality of Hire”.
A metric used to evaluate the effectiveness of a company’s hiring process.
Page 113
Name some commonly used measures in determining quality of hire.
-On-the-job performance
-Retention rate
-Performance appraisal score
-Relationship between interview and performance
-Customer service score
-360-degree feedback score
-Talent scorecard
-Rate of salary increase
-Performance error rates
-Inclusion in succession plan
-Promotion rate
-Promotion frequency
-Average bonus
Page 113
Define “Job-Posting”.
An internal recruiting process in which job vacancies are advertised to present employees so that those who want to be considered for the job vacancy are allowed to apply for the job.
Page 114
Define “Job Bidding”.
An internal recruiting process that allows employees who believe they have the necessary qualifications to apply for a job opening.
Page 114
What are the guidelines for an effective job-posting-and-bidding system?
-Posted where employees are likely to see them
-All full-time promotions and transfers should be posted
-Jobs should be posted for at least a week before recruiting from outside
-Job specification should be included
-Eligibility rules/criteria should be clarified
-All applicants should be informed once a decision is made
Page 114
Define “Nepotism”.
Employment practices that show favoritism to friends or relatives.
Page 116
What are some suggestions for how to succeed in hiring family members?
-Avoid playing favorites
-Require family members to obtain outside experience
-Provide management support for following correct procedures
Page 117
What is the primary disadvantage of offering only web-based options for job applications?
It may have an adverse impact on minorities who may not have access to a computer or the internet.
Page 117
What is the Partnership for Youth Success (PaYS) program?
A recruitment program developed by the U.S. Army in 2000 to help recruits explore their career interests and match them with enlistment options. When released, recruits are promised opportunities to interview with some of the PaYS partner firms.
Page 119
Define “Job Service”.
Public employment agencies operated by each state under the general direction of the federal government that provide job placement, training, counseling, and testing as free services.
Page 119
What is the typical range for the fee charged by a private employment agency?
-10%-20% of the employee’s first year’s salary.
Page 120
Who pays a private employment agency’s fee?
-The employer does if it is the one requesting employees.
-The employee does if he/she is the one seeking assistance in obtaining employment.
Page 120
Define “Headhunters”.
Executive search firms that search for individuals who are able to assume positions of leadership for client organizations.
Page 120
What is the approximate fee charged by most “headhunter” firms?
-Between 30% and 40% of an executive’s annual salary.
Page 121
What is the typical markups for temporary or temp-to-hire employees through a temporary agency?
-45% to 60%.
Page 122
Define “Gig Worker”.
An individual who is hired usually through a website or mobile app to complete a single project.
Page 122
Per the Bureau of Labor Statistics, what are the occupations that may be best suited for gig work?
-Arts and design (musicians, graphic designers)
-Computer and IT (web/software developers)
-Construction (contractors, carpenters, painters)
-Media and Communications (videographers, photographers)
-Transportation (rideshare drivers, delivery drivers)
Page 122
What are some special events that organizations can use to attract potential recruits?
-Job fairs
-Open houses
-Hospitality Suites
Page 122
What are the two primary advantages of resume sharing?
- Reduces recruiting costs
- Convenience for everyone
Page 123
Define “Recruitment Management System”.
A system that tracks applicants as they move through the recruiting process.
Page 125
Define “Applicant Tracking System”.
A system that tracks applicants as they move through the steps of the recruitment and application process.
Page 125
What tasks can applicant tracking and management systems perform?
-Post jobs to corporate and online sites
-Collect applicant information
-Store data for later retrieval/analysis
-Provide tools to screen, assess, and rank applicants
-Track applicants/jobs through recruitment process
-Connect with background-screening providers to verify past education and employment
-Manage schedule of recruitment/selection events
-Notify applicants of progress through process
-Integrate with organization’s HRIS
-Generate reports for effectiveness reviews and government reporting
Page 126
What did the Uniform Guidelines on Employee Selection Procedures do?
-Updated the previous guidelines
-Established more uniform criteria regarding employment discrimination and the procedures required to eliminate discrimination
-They apply to all types of personnel decisions and selection procedures such as tests, etc.
Page 126
What purposes do application blanks serve?
-Assist in preparing for the employment interview
-Provide info subject to verification for reference checks
-Provide info for personnel records
Page 126
What kinds of information do application blanks typically request?
-Vital statistics (name, address, etc.)
-Educational background
-Work history
-Background experiences (professional associations, hobbies, etc.)
Page 127
Define “Patterned Interview”.
A structured interview in which the interviewer asks a series of predetermined questions.
Page 127
What are the advantages of a patterned interview?
-Less biased
-More reliable
Page 128
What types of applicants would a patterned interview style be most suited for?
-Applicants with disabilities
Page 128
Define “Semi-Structured Interview”.
One in which the interviewer determines the major questions beforehand, but allows sufficient flexibility to probe into other areas as needed to evaluate an applicant’s personality.
Page 128
What types of questions might be asked in a semi-structured interview?
-Why did you choose your particular field of work?
-What courses in school did you like best/least? Why?
-What do you hope to be doing in ten years?
Page 128
Define “Behavioral Interviews”.
One in which an applicant describes either past or anticipated future behaviors.
Page 128
What are two types of behavioral interviews?
-Situational interviews
-Targeted-selection interviews
Page 128
Define “Situational Interview”.
One that consists of asking candidates to respond to a series of hypothetical scenarios by deciding what actions they would take.
Page 129
Define “Targeted-Selection Interview”.
One in which the questions focus on what the person has done in previous situations; the interviewer uses the answers to rate the applicant on the critical target dimensions for that position.
Page 129
What are “STAR” components?
-Situation/Task the applicant faced
-Action taken by the applicant
-Result that occurred as a result of the action
Page 129
Define “Non-Directive Interview”.
-An unstructured interview in which the interviewer allows the candidate to discuss whatever he or she wishes to discuss (usually by asking open-ended questions).
Page 129
What types of questions might be asked in a non-directive interview?
-Tell me about yourself.
-What are your future vocational plans?
-Tell me about your experiences on your last job.
-How do you spend your time, and what are your hobbies?
Page 129
How should an interviewer successfully conduct a non-directive interview?
-Listen carefully
-Limit question
-Don’t argue or interrupt
-Allow pauses in the conversation
-Occasionally rephrase responses encourage the candidate to elaborate more
Page 129
Define “Stress Interview”.
One in which the candidate is subjected to intentionally created stress to observe how well he/she performs in that situation.
Page 130
Define “Group Interview”.
One in which a group of applicants are interviewed at one time.
Page 130
Define “Board/Panel Interview”.
One in which an applicant is interviewed by a group of interviewers at one time.
Page 130
What are ten proposed principles of good listeners?
Good listeners:
1. Look for areas interest
2. Overlook errors of delivery and objectionable personal mannerisms
3. Postpone judgment until they understand the whole story/point
4. Listen for ideas and identify main points
5. Take careful notes
6. Are actively responsive in trying to listen
7. Resist distractions
8. Challenge their minds by trying to learn difficult material
9. Capitalize on mind speed
10. Assist and encourage the speaker by asking for clarifying information and rephrasing ideas
Page 131
What are the two levels of empathic listening?
- Expressed level (restating, paraphrasing content of the response)
- Implied level (attending/addressing what is implied or left unstated)
Page 131
What are some biases created by mental shortcuts during the interviewing process?
-Contrast effect (applicant’s evaluation is partially influenced by previous applicant)
-Anchoring bias (evaluation is made based on first impressions)
-Negative emphasis bias (interviewer is highly influenced by negative information)
-Similarity bias (candidates who remind the interviewer of someone outstanding tend to be viewed more favorably)
-Halo/horn effect (one characteristic of a person (pos. or neg.) strongly influences every other impression that the interviewer has of him/her)
-Cultural noise bias (telling the interviewer what he/she wants to hear)
-Stereotyping (interviewer assumes that a candidate is intelligent, athletic, etc. based upon the candidate’s race, sex, ethnicity, etc.)
-Intuition bias (interviewer trusts his/her intuition more than objective data in evaluating a candidate)
-Ideal employee bias (interviewer uses his/her preconceived notion of an “ideal candidate” to evaluate candidates)
-Confirmation bias (interviewer draws conclusions about a candidate based on early information and then searches for, favors, and remembers info that confirms that conclusion)
-Racial and gender bias (when an interview is used as an opportunity to discriminate against minorities and women)
Page 133 - 134
Define “Achievement Tests”.
Tests that measure how much an individual has already learned.
Page 134
Define “Aptitude/Ability Tests”.
Tests that measure an individual’s capacity for learning.
Page 134
What is the “g-factor”?
The general intelligence factor of a mental ability test.
Page 135
What are the three major categories of aptitude/ability tests?
- Mental abilities
- Mechanical abilities
- Psychomotor abilities
Page 135
What is “psychomotor ability”?
An individual’s skills in making various body movements.
Page 135
What are some specific psychomotor abilities that have been identified and tested?
-Control precision
-Multi-limb coordination
-Reaction time
-Speed of arm movements
-Manual dexterity
-Finger dexterity
Page 135
Define “Assessment Center”.
A selection procedure primarily used for selecting managers in which candidates participate in individual and group exercises and are evaluated by observers.
Page 135
Define “Qualified Privilege Doctrine”.
It allows past employers to share relevant job-related personal information about an applicant with future employers.
Page 136
If a candidate’s social media information is used in the selection process as a background check method, how/when should it be used in the process?
-It’s not a recommended background check method.
-All social media checks should performed at the same point in the application process (normally after interviewed, judged to be viable).
-Decisions to reject applicants due to their social media content should be carefully documented to defend the company’s decision in court.
Page 137
What are some potential indications of academic credential fraud?
-Degrees that are out of sequence
-Degrees obtained in less than normal time
-Degrees located in cities where the applicant wasn’t living
-School address discrepancies
-Schools that charge per degree rather than per credit/course basis
-Schools whose degrees are largely based on credit for work/life experiences
-Unaccredited schools
Page 138
What types of interview questions are employers allowed (and encouraged) to ask an applicant?
-Dates of (and gaps in) employment
-Suspicious entries or omissions
-Are they eligible for rehire?
-Educational background
-Military service/training
-Verification of positions held, titles, salary, etc.
-Incidences of bad behavior
-Criminal background
Page 138
Define “Negligent Hiring”.
A legal theory that makes employers liable for the abusive acts of employees if the employer knew or should have known about the employee’s propensity for such conduct.
Page 138
Define “Consumer Report”.
One that may contain info regarding an individual’s credit standing, character, reputation, personal characteristics, and mode of living.
Page 139
True or false? Before requesting a consumer report, employers are required to obtain signed permission from employees or job applicants.
True.
Page 139
True of false? Disclosures to applicants, informing them that a credit report may be purchased, may be included on the same page as other application information.
False. Disclosures regarding applicant credit checks must be made on a separate piece of paper, and the consumers must sign it.
Page 139
Define “Investigative Consumer Report”.
One that includes info on a consumer’s character, general reputation, personal characteristics, lifestyle, etc, and is obtained through personal interviews with neighbors, friends, or associates of the consumer.
Page 139
What are employers required do before obtaining an investigative consumer report?
-Disclose to the applicant (in writing) that such a report may be obtained
-The notice must be delivered to the subject of the report within 3 days of requesting the report.
Page 139
If a consumer/applicant makes a written request to know the scope/nature of an investigative consumer report about him/herself, how long does the employer have to respond?
The employer has 5 days to respond.
Page 139
What must the employer do if any adverse employment action is based (in whole or in part) on the consumer report?
It must provide:
-A copy of the report to the applicant
-A copy of the applicant’s rights under the Consumer Credit Reporting Reform Act (CCRRA).
Page 139
What are the three criteria employers need to consider when evaluating an applicant’s conviction records to demonstrate business necessity?
-The nature/gravity of the offenses
-Time lapsed since the offense occurred/completion of the sentence
-The nature of the job applied for
Page 140
True or false? Employers can require a physical examination before making an official job offer to an applicant?
False. Employers covered by the ADA can’t require one until AFTER a conditional employment offer is made.
Page 140
True or false? The ADA requires that the results of medical examinations must be collected on separate forms and maintained in confidential files separate from other application materials.
True.
Page 142
If eliminated during the candidate selection process, when should applicants be informed that they are not a candidate for the position?
As soon as the decision is made.
Page 142
Define “Fill Time”.
How long it takes to replace a departing employee or fill a new job opening.
Define “Hard Freeze”.
All open positions will remain unfilled for an indefinite period of time.
Page 96
Define “Soft Freeze”.
Nonessential jobs will remain vacant, but openings will be filled if they are critical to the success of the company.
Page 96
What are the six objectives regarding pay decisions?
- Be legal.
- Be adequate.
- Be motivating.
- Be equitable.
- Provide security.
- Be cost-benefit effective.
Page 157
What does the “compensation maxim” state?
Employees should be compensated:
1. According to the job requirements, and how well they perform the job
2. By labor market conditions (supply and demand) and the organization’s ability to pay.
Page 158
Define “Pay Secrecy”.
A policy that restricts employees from discussing their pay, and limits the amount of information about pay that can be made public.
Page 159
Define “Wage-Level Decision”.
-The decision that answers the question, “How much does one company pay relative to other companies with similar jobs?”
-A wage survey
-Primarily concerns pay adequacy
Page 159
Define “Wage-Structure Decision”.
-The decision that answers the question, “How much is paid for one job relative to other jobs within the same company?”
-Its main purpose is to provide equal pay for jobs of equal worth, and an acceptable set of pay differentials for jobs of unequal worth.
-(e.g. Engineering pay vs. Marketing pay in the same company)
Page 159
Define “Individual Wage Decision”.
The decision that answers the question, “How much money does an employee receive relative to the money received by other employees who perform similar work?”
-(e.g. Engineer vs. engineer at same company)
Page 159
What are three objectives that a sound wage-level policy is expected to achieve?
- Attract adequate supply of labor
- Keep employees satisfied with their compensation
- To avoid costly turnovers
Page 161
Define “Compensation/Wage Survey”.
A survey that collects information about the compensation and benefits of other employees in similar industries or in the same geographical area.
Page 161
What types of organizations conduct wage surveys?
- Government agencies (like the Bureau of Labor Statistics (BLS))
- Professional organizations (Forbes, Glassdoor)
- Individual companies (Chamber of Commerce)
Page 161
What four conditions must be met for surveys done by business associations (Chambers of Commerce, etc.) to be useful?
- Reciprocity (Orgs that conduct surveys must share their wage info)
- Anonymity (Orgs that share their wages must not be identified)
- Low cost (Efficient and inexpensive)
- Timeliness (Info must be current, esp. in times of high inflation)
Page 162
What are the government guidelines for employers to use when exchanging salary data to avoid violating the law?
-Neutral/3rd party manages the exchange
-The exchange involves info that is relatively old (3-18 months)
-Info is aggregated to protect the identity of the underlying sources
-Enough sources are aggregated to prevent competitors from linking particular data to an individual source (at least five organizations)
Page 163
Define “Job Evaluation.”
The method used to determine the relative worth or value of each job in an organization.
Page 164
What are the methods used by job evaluation systems?
-Job ranking (non-analytical)
-Classification (non-analytical)
-Point method (analytical - uses detailed job analysis)
-Factor comparison (analytical - uses detailed job analysis)
Page 165
What is a “whole job” evaluation method?
-A method used to determine the relative worth of jobs from an overall, global assessment of the content of the jobs.
-Examples: Ranking and classification
Page 165
Define “Job-Ranking Method”.
The simplest method of developing a wage structure, which involves ranking jobs from highest to lowest in value.
Page 165
Define “Classification Method”.
A predetermined-grading method in which the job descriptions for each job are compared with a classification scheme that ranks the jobs in a hierarchy of job worth.
Page 165
Define “Point Method”.
-The compensable factors of key jobs are used to develop the wage curve. Points are assigned to each factor, and the total points are associated with a specific pay level.
-Most frequently used job evaluation method
Page 165
What are the six steps for developing the point method?
- Identify key jobs.
- Identify job factors used to determine compensable factors.
- Weigh job factors according to their contribution to the overall worth of the job.
- Divide each job factor into degrees that range from high to low, and assign points to each degree.
- Assign degrees to the job factor of each key job, and calculate the total points for each job by summing the points assigned for each factor.
- Develop a wage curve using key jobs.
Pages 165-166
Define “Key/Benchmark Jobs”.
-Equitably paid jobs that are used in the point method to develop a wage structure. Key jobs are used to develop a wage curve, which is used to determine pay levels of other jobs.
-Sometimes called benchmark jobs
Page 165
Define “Compensable Factors”.
The factors associated with the different jobs that justify paying one job more than another.
Page 165
Define “Wage Curve”.
The line on a wage structure graph that shows higher levels of pay associated with higher level jobs.
Page 166
Define “Broadbanding”.
Creating wide labor grades so that there are fewer labor grades with more jobs in each one; doing so reduces the number of job classifications but increases the pay range.
Page 166
Define “Factor Comparison Method”.
A method for developing wage structure which involves identifying job factors (mental demands, responsibility, etc.) and assigning monetary amounts to each job on each factor.
Page 166
Define “Hay Guide Chart-Profile Method.”
A job evaluation method that uses three compensable factors - know-how, problem solving, and accountability, to determine how many points should be assigned to different jobs.
Page 166
Define “Job Pricing”.
The process of placing a dollar value on the worth of a job.
Page 167
Define “Pay Range”.
The range of pay associated with each pay grade, which indicates how much individual incentive is associated with the job.
Page 167
Define “Pay grade”.
A cluster of jobs along the hierarchy of job worth that are all paid the same rate of pay.
Page 167
Define “Compa-ratio”.
A number that compares a person’s pay rate with the midpoint of the pay range
-A compa-ratio = wage rate/midpoint of labor grade x 100
Page 168
How can compa-ratios be useful?
They can be used for budgetary control purposes or to investigate pay discrimination claims.
Page 168
Define “Step Increases”.
Pay increases that are based on performance and length of service.
Page 169
Define “Topped Out”.
When employees receive pay increases to the point that their salaries are at the top of their pay ranges, and are no longer eligible for pay increases based on performance; they will only receive higher salaries as the entire wage curve is increased.
Page 169
Define “Red-Circle Jobs”.
Jobs that are either overpaid or underpaid relative to the amount the wage curve indicates ought to be paid for them.
Page 169
What are underpaid jobs sometimes called?
Blue circle or green circle rates.
Page 169
What are five possible solutions to resolve pay issues for red-circle rates?
- Immediately reduce the employee’s wages.
- Notify employee that his/her pay will be gradually reduced over time.
- Hold his/her pay rate constant until cost-of-living/inflation increase the wage curve
- Add more responsibilities to his/her job.
- Promote him/her if qualified for a promotion.
Page 170
What are the factors used in the individual wage decision-making process?
-Performance
-Experience
-Seniority
-Potential
Page 171
Define “Pay-for-Performance”.
A pay system that ties pay to performance levels.
Page 172
Define “Merit Pay”.
Increases in an employee’s basic wage level based upon performance levels.
Page 172
What is a lump-sum merit increase?
One-time rewards in recognition of outstanding performance, which do not change the employee’s base pay; they’re usually paid at the end of a quarter or the year.
Page 172
What five conditions must be met before an effective merit pay program can be established?
- Individual differences in job performance must be large enough to be worth the time and effort for management to translate the differences into pay terms.
- The pay range should be wide enough to allow for the pay differentiation.
- Differences in individual job performance should be measurable.
- Supervisors/managers must be competent of evaluating employees.
- Management must be committed, and employees must be receptive to making distinctions among employees based on performance.
Page 173
Define “Sales Commission”.
A form of incentive pay often used to pay salespeople.
Page 174
What are the five different types of commission pay?
-Straight
-Bonus
-Salary plus
-Tiered
-Variable
Pages 174-175
What’s the difference between Bonus Commission and Salary Plus Commission?
Bonuses are typically based on meeting established sales quotas whereas salary plus commission pays commissions based on a percentage of one’s total sales.
Page 174
What’s a variable commission, and when is it used?
-It’s a type of commission system that pays different percentages for different types of sales.
-Used primarily for selling harder-to-sell items/services or when selling in a new/difficult market.
Page 175
Define “Bonus”.
The incentive pay that individuals may receive for outstanding performance; it’s not part of their base pay.
Page 175
Name six types of bonuses.
-Signing
-Performance
-Project
-Referral
-Retention
-Year-End/Holiday
Pages 175-176
What type of bonus may an employee be required to return to the company, and why?
-Signing bonuses must be returned if the new employee does not stay with the company for a certain amount of time.
Page 175
What type of bonus may be discretionary or non-discretionary?
-Performance bonus
Page 175
What type of bonus might be tied to a timeline and have certain quality requirements?
-Project bonus
Page 176
What type of bonus may be offered to an employee as an incentive to stay with the company during a merger or acquisition?
-Retention bonus
Page 176
What are some different types of bonuses that some employers may give as a Year-End/Holiday Bonus?
-Cash
-Gift cards
-Food items
-Prizes
Page 176
Define “Piece-Rate”.
The amount of money that an employee receives for performing a particular unit of work.
Page 176
Define “Straight Piecework”.
-An individual incentive plan that provides a fixed rate of incentive pay for each item produced.
Page 176
Define “Differential Piece-Rate Plan”.
-A piece-rate incentive plan that pays a low piece rate for those who produce less than the standard, and a high piece rate for those who meet or exceed the standard.
Page 176
Define “Standard Hour Plan”.
-An individual or group incentive plan that pays a fixed rate per hour in which workers are paid an hourly wage, but the hour is measured in units produced instead of minutes.
-Standard performance is usually set at 60 units of work/hour
-Anything over 60 units = time + 1/2
Page 177
Define “Halsey Premium Plan”.
An incentive plan where the workers receive a guaranteed hourly wage plus a percentage of the wage for any time saved.
Page 177
Define “Skill-Based Pay”.
-A pay system in which an employee’s pay is partially determined by the employee’s skills, which motivates employees to acquire greater skills.
Page 178
Define “Pay-for-Knowledge”.
A program under which employees are paid according to the skills or knowledge they have demonstrated.
Page 178
Why are skill-based/pay-for-knowledge programs important in a labor union setting?
-In union settings with restrictive work rules, workers who are cross trained on different tasks/skills can perform a variety of different jobs without having to be shifted from job to job.
Page 178
What are the three different models used in the design of skill-based pay and pay-for-knowledge programs?
- Stair-step model
- Building blocks model
- Job-point accrual model
Page 178
Define “Stair-Step Model”.
It assumes that knowledge/skills required for a job can be arranged hierarchically/sequentially, such that more complex knowledge builds on earlier skills/knowledge
Page 178
Define “Building Blocks Model”.
A skill-based/pay-for-knowledge model that the various skills/knowledge are discrete, and capable of being acquired in any order.
Page 178
Define “Job-Point Accrual Model”.
-A skill-based/pay-for-knowledge model that is similar to the building blocks model
-Point values assigned to each skill/knowledge area
-Employees accumulate points when they master a skill/knowledge area
Page 178
What is “differential pay”?
-Additional compensation to make up for difficult/unpleasant differences in the job, which is crucial in making compensation fair.
Page 179
Define “Overtime Pay”.
-Time and one-half pay for hours worked in excess of 40 hours per week.
Page 179
What is “shift pay”?
-Additional pay for less desirable shifts like night shifts or swing shifts.
Page 179
What is hazard pay?
-Additional pay to compensate employees for the added risk that hazardous jobs can pose.
Page 179
What is “on-call pay”?
-Additional compensation paid to employees when they are “on-call”.
Page 179
What is “Call-back pay”?
-Additional compensation paid to employees who are called back to work because of emergencies.
Page 179
Define “Geographical Differentials”.
-Additional compensation paid to those who live in (or are transferred to) locations with a high cost of living.
-a.k.a. “Locality pay”
Page 179
Define “Weekend/Holiday pay”.
-Additional compensation for those who have to work on weekends or holidays, especially if they’re not paid overtime for it.
Page 179
What are some advantages of Group and Team Incentives?
-Less direct supervision needed
-Slow workers are pressured by coworkers to speed up
-Workers are more likely to adapt to/solve problems themselves
Page 180
Define “Profit-Sharing Plan”.
-A program that enables employees to receive a share of the company’s profits in addition to their regular pay.
Page 180
Define “Cash Profit-Sharing Plan”.
-A plan in which payments are made to employees at the end of a period (quarterly, annually, etc.)
-Preferred by small companies
Page 180
Define “Deferred Profit-Sharing Plan”.
-A plan in which an employee’s share is held until a later period, usually retirement.
Page 180
Define “Allocation Formula”.
-The formula used in profit sharing plans that determines how the profit is allocated to individuals
-Normally based on seniority and performance
Page 180
Define “Gainsharing”.
-A pay-for-performance plan such as a Scanlon plan, a Rucker plan, or an improshare plan.
-Most plans are based on improved productivity rather than a % of the profit.
Page 181
Define “Scanlon Plan”.
-A company-wide incentive plan that combines profit sharing with a suggestion system.
-Typically used in unionized companies, but can be used in any company.
Page 181
Define “Rucker Share-of-Production Plan”.
-A company-wide incentive plan in which compensation is based on a ratio of income to value added by the employees in the production process.
Page 181
What are “Improshare Plans”?
-A pay-for-performance plan in which individual incentives are increased as workers accomplish more work in less time.
-Plans in which IMprovements in PROductivity are SHARED with the employees.
-Can be used in situations where a physical product is not produced.
-E.g. Hotel employees could get bonuses tied to the occupancy rate.
Page 181
Define “The Fair Labor Standards Act”.
It set: -Minimum wage standards -Overtime pay standards -Child labor restrictions -Record-keeping requirements Page 183
Define “Exempt Employees”.
-Employees who are exempt from the overtime requirements of the FLSA, such as outside salespersons or administrative, executive, or professional employees.
Page 184
Define “Nonexempt Employees”.
-Those who are covered by the minimum wage and overtime pay provisions of the FLSA.
Page 184
What four criteria must be met to qualify for the “executive exemption”?
-He/she must be paid at least the established minimum wage per week.
-His/her primary duty must be managing the enterprise or a recognized dept./subdivision of the enterprise.
-He/she must regularly direct the work of at least 2 other FTEs or their equivalent
-He/she must have authority to hire/fire employees or his/her recommendations about the hiring, firing, promotions, etc., of other employees must be given particular weight.
Page 184
What three criteria must be met to qualify for the “administrative exemption”?
-He/she must be paid at least the established minimum wage per week.
-His/her primary duties must be performance of office/non-manual work directly related to the management/general business operations of the employer.
-His/her primary duty includes the discretion and independent judgment with respect to significant matters.
Page 184-185
What are the two classifications of “professional exemptions”?
-Learned professional
-Creative professional
Page 185
What four criteria must be met to qualify for the “learned professional exemption”?
-He/she must be paid at least the established minimum wage per week.
-His/her primary duty must be work that requires advanced knowledge (predominantly intellectual in nature and which requires the consistent exercise of discretion/judgment.)
-The advanced knowledge must be in a field of science or learning.
-The knowledge must be customarily acquired by a prolonged course of instruction.
Page 185
What four criteria must be met to qualify for the “creative professional exemption”?
-He/she must be paid at least the established minimum wage per week.
-His/her primary duty must be work that requires invention, imagination, originality, or talent in a recognized field of artistic/creative endeavor.
-The advanced knowledge must be in a field of science or learning.
-The knowledge must be customarily acquired by a prolonged course of instruction.
Page 186
In addition to minimum pay requirements, what four criteria must the primary job duties of computer systems analysts, programmers, and software engineers consist of to qualify for the “computer employee exemption”?
-The application of systems analysis techniques/procedures (including consulting with users) to determine hardware, software, systems specs.
-Creation, design, development, testing, etc. of computer systems/programs based on/related to user or system design specifications.
-Creation, design, documentation, testing of computer programs related to machine operating systems.
-A combination of these duties which requires the same level of skills.
Page 186
True or false? The computer-employee exemption includes employees whose work is highly dependent upon the use of computers (e.g. engineers, drafters, etc.)
False. However, engineers, drafters, etc. may be covered under other types of exemptions.
Page 186
What two tests must be true to qualify for the “outside sales employee exemption”?
-His/her primary duty must be making sales or obtaining orders/contracts for services or use of facilities for which a consideration will be paid by the client/customer.
-He/she must be customarily and regularly engaged away from their employer’s place(s) of business.
Page 186
Define “Regular Workweek”.
-Consists of seven consecutive periods of 24-hour days.
Page 187
Define “Regular Rate of Pay”.
Includes the basic hourly rate of pay plus any non-discretionary bonuses, shift differentials, production bonuses, and commissions earned.
Page 187
Define “Hours Worked”.
All hours that an employee is permitted to work, plus time when the employee is required to be on the employer’s premises, on duty, or at a designated work station.
Page 188
What is the maximum amount of compensatory time (“comp time”) for public nonexempt employees?
-Public employees: 240 hours
-Police and fire officers: 480 hours
Page 189
True or false? Comp time is not permitted in the private sector?
True
Page 189
What is the minimum wage law for those who receive tips?
They can be paid $2.13/ hour as long as their tips are sufficient to reach the minimum wage rate; employers must explain to tipped employees how their pay is determined.
Page 189
What types of jobs may youths between the ages of 16 and 18 perform?
They may work in non-hazardous jobs for an unlimited number of hours.
Page 189
What types of jobs may youths between the ages of 14 and 15 perform?
They may work:
-Non-manufacturing, non-mining, non-hazardous jobs
-No more than 3 hours on a school day, 8 hours on a non-school day, or 40 hours in a non-school week
-After 7 A.M., but before 7 P.M.
Page 190
What types of jobs may youths between the ages of 12 and 13 perform?
-Non-hazardous farm jobs outside of school hours
Page 190
What types of jobs may youths under 12 perform?
-Non-hazardous jobs on farms with parent’s written consent outside school hours.
Page 190
What type of rule applies to youths of any age?
-They may be employed by their parents at any time and in any job on a farm owned/operated by their parents.
Page 190
What kind of records does the FLSA require employers to keep?
-Personal info
-Day/hour when workweek begins
-Total hours worked each workday/workweek
-Total daily or weekly straight-time earnings
-Regular hourly pay rate for any week when overtime is worked
-Total overtime pay for workweek
-Deductions from/additions to wages
-Total wages paid each period
-Date of payment and pay period covered
Page 190
What four factors have courts used to determine whether the de minimus rule applies?
- Amount of daily time spent on additional work
- Practical administrative difficulty recording the added time
- Total amount of compensable time
- Regularity of the additional work
Page 190
What does the Equal Pay Act prohibit?
-It prohibits employers from paying members of one sex less than members of the opposite sex for performing equal work (same skill, effort, and responsibility under same conditions).
Page 191
What are the four exceptions to an employer’s obligations to pay male and female employees the same wages?
-Bona fide seniority system (wages based on length of service)
-Merit pay system (pay determined by legitimate performance measures)
-System that measures earnings by quantity/quality of production
-Non gender-based differential criteria (regular v. temp employee, locality pay, etc.)
Page 191
Define “Comparable-Worth Controversy”.
One that centers on the issue of whether organizations should be required to establish a common set of criteria for evaluating the worth of jobs and to provide equal pay for jobs of comparable worth.
Page 191
Define “Independent Contractors”.
Independent workers who supervise themselves, pay their own taxes, and are not employees. They also: -Set their own hours -Get paid by the job -Furnish their own tools/equipment -Determine work sequence -Advertise their services -Work for more than one employer -Have the opportunity for both profits and losses Page 192
What is the primary factor that determines the difference between an employee and an independent contractor?
-Economic dependence
Page 192
What are the six factors (derived from Supreme Court precedent) that are used to determine economic dependence?
- Nature/degree of the potential employer’s control
- Permanency of the worker’s relationship w/ employer
- Amount of the worker’s investment in facilities, equipment, or helpers
- Amount of skill, initiative, judgment, or foresight required for the worker’s services
- Worker’s opportunity for profit or loss
- Extent of integration of the worker’s services into the potential employer’s business
Page 192
For tax purposes, what three criteria does the IRS use to evaluate whether someone is an employee an independent contractor?
- Behavioral control
- Financial control
- Type of relationship
Page 193
With regard to “behavioral control”, what factor determines the difference between an employee and an independent contractor?
-The training that the business gives to the worker.
-An employee may be trained to perform services in a particular manner whereas contractors normally use their own methods.
Page 193
With regard to “financial control”, what factors determine the difference between an employee and an independent contractor?
-Extent to which the worker has unreimbursed business expenses
-Extent of the worker’s investment (in tools, etc.)
-Extent to which the worker makes his/her services available to the relevant market (Do they have other customers?)
-How the business pays the worker (workers are typically paid hourly)
-Can the worker make a profit/suffer a loss? (Contractors can make a profit/loss; not employees)
Pages 193-194
With regard to “type of relationship”, what factors determine the difference between an employee and an independent contractor?
-Descriptive written contracts between the parties?
-Does the employer provide the worker benefits?
-Permanence of relationship
-Are the worker’s services a key aspect of business of the company?
Page 194
What form can an organization/worker file to request that the IRS determine whether to classify a worker as an employee or an independent contractor?
-Form SS-8
Page 194
What are five methods used to identify potential management?
- In-basket exercise
- Group discussion
- Individual tests
- Interviews
- Business games
What three benefits are employers required to provide to protect employees’ incomes?
- Social Security
- Workers’ compensation
- Unemployment compensation
Page 196
What are the four basic types of insurance benefits that the Social Security Act provides?
- Old age/disability
- Benefits for dependents of retired, disabled, or deceased workers
- Lump-sum death benefits
- Medicare
Pages 196-197
Define the normal retirement age to collect social security.
-Current age to collect is 66, but scheduled to rise to 67
-It’s possible to retire at 62 with a 13% reduction in benefits.
Page 196
What are the conditions for a worker to be considered “disabled”?
-He/she must have a severe physical or mental condition that prevents them from working and that is expected to last at least 12 months.
Page 196
How many years does it take for a worker to become fully insured in the Social Security system?
-Ten years (40 quarters)
Page 196
What is the maximum Social Security monthly benefit for a worker retiring at full retirement age in 2020?
-$3,011
Page 196
What are the details regarding dependents and spouses of retired or disabled workers receiving Soc. Security benefits?
-Unmarried children under 18 (22 if a full-time student) can receive payments
-A spouse age 62+
-A spouse under 62 if they are caring for the worker’s child.
Page 196
What are the details regarding spouses, dependents, and dependent parents of deceased workers receiving Soc. Security benefits?
-Unmarried children under 18 (19 if still in H.S.)
-A widow/widower age 60+
-Dependent parents age 60+
Pages 196-197
Define “Lump-Sum Death Benefits”.
-A lump-sum Social Security payment made to a worker’s survivors when he/she dies.
-In 2019, the lump-sum payment was $255.
Page 197
Define “Medicare”.
A Soc. Sec. benefit that pays medical expenses of employees over age 65 and permanent disability payments for individuals under age 65.
Page 197
Who can qualify to receive Medicare?
-Those age 65+
-Those under 65 who are disabled for at least 24 months
-Those under 65 (or their dependents) who need dialysis treatment or a kidney transplant due to permanent kidney failure.
Page 197
What is Medicare Plan A?
-The hospital insurance part that covers inpatient hospital care and other related costs.
Page 197
What is Medicare Plan B?
-The medical insurance part that helps to pay the costs of doctor’s services, outpatient hospital services and other things not covered by hospital insurance.
Page 197
Who is eligible to receive Plan A?
-Everyone 65+ who is eligible for Soc. Sec. benefits.
Page 197
What must recipients of Plan B do to receive its benefits?
-Those 65+ must pay a monthly premium based on marital status and income.
Page 197
What is the purpose of Medicare Part D?
-To help seniors with the cost of prescription drugs.
Page 197
Define “Workers’ Compensation”.
-The compensation provided for employees who are injured on the job regardless of who was responsible for the accident.
Page 197
What are the 3 types of worker’s compensation benefits provided by most states?
- Death benefits
- Medical expenses
- Wage replacements
Page 198
What are four possible ways in which workers’ compensations benefits could be funded?
- By a private insurance program
- The company itself (if it’s large/financially strong enough)
- The state’s own exclusive fund, acting as a monopoly insurer of accidents
- A state fund might compete with private insurers to insure companies
Page 198
Define “Experience Rating”.
-A rating computed for each employer that is based on the number of accidents or the number of employees laid off
-Used to adjust the unemployment compensation and workers’ compensation tax rates for each employer.
Page 198
Define “Unemployment Compensation”.
-Money provided by the unemployment compensation funds to temporarily assist employees who are laid off through no fault of their own.
Page 198
Define “Carryover Provision”.
-Allows a certain number of unused vacation days to be carried over to the next year. Any unused days above the limit will be lost.
Page 200
Define “Cash-In Provisions”.
-Allows employees covered by such plans to “cash-in” a certain number of unused vacation days per year. Any unused days above the limit will be lost.
Page 200
Define “Managed Health Care”.
-Refers to a variety of strategies to reduce healthcare costs.
-Also called “managed competition”
Page 203
Define “Fee-for-Service Plans”.
-Health insurance plans that allow employees to decide what services they want, and health care providers charge a fee for the services they render.
-Charges paid by employee and/or the employee’s benefit plan.
Pages 203-204
To keep fee-for-service costs low, what are the four most significant approaches to cost reduction?
- Increase deductible amounts
- Make employees pay higher share of insurance premiums
- Adjusting coinsurance percentage, making employees pay more
- Hold total coverage constant; add benefits only if other are deleted
Page 205
What are the five major kinds of health insurance plans?
- Fee for service
- Preferred provider organizations (PPO)
- Point of service
- Health maintenance organizations
- Group health plans
Page 203
Define “Preferred Provider Organizations” (PPOs).
-Health insurance plans that consist of contractual arrangements between health care providers and an employer or insurance company to provide fee-for-service health care, usually at a discount.
Page 205
Define “Health Purchasing Cooperatives”.
-Health plans that contract with health-care providers to purchase services at a discounted rate.
Page 205
Define “Point of Service”.
-Health plans that are similar to PPOs except for the presence of a gatekeeper who monitors the services rendered.
-Usually the gatekeeper is the PCP.
Pages 205-206
Define “Health Maintenance Organization” (HMO).
-Provides health care services emphasizing preventive medicine at a fixed monthly rate.
Page 206
Define “Group Health Cooperatives”.
-A special kind of HMO consisting of a collection of physicians, hospitals, and clinics that combine to provide health care services for members
-Members pay a capitated monthly fee
-Medical staff are paid a fixed salary instead of by the number of patients they see.
Page 206
Define “Flexible Benefits/Cafeteria Plans”.
-Plans that allow the employees to choose the benefits they desire, subject to limitations and total cost constraints.
Page 206
Define “Flexible Spending Arrangement” (FSA).
-A saving plan that enables participants to pay health and dependent care expenses with pretax dollars deducted from an employee’s income by the employer rather than after-tax dollars.
Page 207
In 2020, what is the maximum amount of money that can be contributed to an FSA from salary reductions?
$2,750
Page 207
How much money may be rolled over from an FSA to the following year?
$500 maximum may be used to pay for expenses incurred the next year.
Page 207
Define “Premium Conversion Plan”.
A medical plan that allows its participants to pay the required premium with pretax dollars.
Page 207
Define “Health Reimbursement Act”.
-Employer-provided reimbursements for medical expenses that are excluded from taxable income, but subject to max dollar limits for a coverage period.
-Unused funds can be rolled over to the next year.
-Funds cannot be used for health insurance premiums.
Page 208
Define “Individual Coverage Health Reimbursement Arrangement” (ICHRA).
-HRAs that allow employers to use pretax dollars to subsidize employee premiums in the individual health insurance market, including public exchanges.
Page 208
Under what condition may employers offer both traditional healthcare plans and ICHRA plans?
-Employer have the option of offering an ICHRA plan to new employees while maintaining traditional group health insurance for employees already on the plan.
Page 208
Define “Health Savings Accounts” (HSA).
-A health plan that allows employees to contribute pretax dollars to an account from which they can pay for health-care costs.
Page 208
What are the requirements for an individual to contribute money to an HSA?
- If he/she is covered under a high-deductible health plan
- He/she cannot be covered under a plan that does not qualify as an HDHP, such as an FSA.
- His/her annual deductible must be at least:
-$1,400 for singles
-$2,800 for families
-$6,900 max out-of-pocket for individuals
-$13,800 max out-of-pocket for families
Page 209
What benefits do employee welfare benefits plans provide for participants and their beneficiaries?
- Medical, surgical, or hospital care
- Reimbursement in case of accidents, disability, or death
- Vacation and sick leave benefits (except those that are paid from the general operating assets of the company)
- Unemployment benefits (e.g. severance)
- Apprenticeship/training programs
- Day care
- Scholarship funds
- Prepaid legal services
Pages 210-211
What compliance challenge do administrators of health and accident plans face?
-They occasionally have a conflict of interest that should require them to alter their decision-making role as a fund fiduciary.
-(i.e. The person watching over the health/accident insurance fund should not be the same person reviewing the health/accident claims.)
Page 211
With regard to health/accident plan administrators, what is a “standard conflict of interest”?
-It occurs when:
1. The plan is self-funded,
2. The company that funds the plan also appoints/compensates the plan administrator,
3. The administrator’s performance reviews/compensation are linked to benefit denials,
And
4. The provision of benefits has a significant economic impact on the company
Page 211
With regard to health/accident plan administrators, what is an inherent conflict of interest?
-It occurs when the administrator is both the insurer and the plan administrator due to the nature of each job.
Page 211
Define “Summary Plan Description” (SPD).
A document required by ERISA for each welfare benefit plan offered by an employer that contains:
1. Plan’s eligibility requirements
2. Summary of benefits
3. Procedures for claims/appeals
4. Circumstances that could result in a loss of benefits
5. Participants’ rights under ERISA
Pages 211-212
What type of clause are employers encouraged to include in their SPDs, and what should it say?
-A “reservation of rights” clause should be included to indicate that the company reserves the right to modify or terminate the plan at its discretion, and it should describe how any amendments made to the plan will be implemented.
-It should identify the individual(s) responsible for making such amendments.
-These clauses should also be included in pension plans.
Page 212
Define “Total Reward Statement”.
-A personalized summary of an organization’s financial commitment for each of its employees.
Page 212
What items may be included in a total reward statement?
-Compensation info
-Health care benefits
-Insurance
-PTO/Vacation
-Retirement
-Costs of employment
-Additional benefits (wellness programs, child care, etc.)
Page 213
Define “Employee Retirement Income Security Act”.
-Legislation designed to ensure that employees covered under private pension plans and employee welfare benefit plans would receive the benefits promised.
-If an employer chooses to have a pension plan, it must comply with strict requirements.
Page 210
Per the Pregnancy Discrimination Act, how must employers’ leave policies treat pregnancy or childbirth?
-They must be treated the same as any other type of personal, temporary disability.
Page 214
How are employers expected to handle pregnant/fertile female applicants who would be unavoidably exposed to substances creating a reproductive hazard in the job that they’re applying for?
-Employers are expected to warn them about the increased risks of birth defects to due exposure, and allow the women decide whether they’re willing to take the risk.
Pages 214-215
Describe the ACA provision for non-exempt employees regarding expressing breast milk.
-They may take unlimited, unpaid breaks to express milk within 12 months of giving birth.
-Employers must provide a private, screened area (not a restroom) for use.
Page 215
Define the “Family and Medical Leave Act”.
-A law that entitles eligible employees to take up to 12 weeks of unpaid leave/year for specified family and medical reasons without losing their job.
-Includes additional time to care for a wounded military service member
Page 215
What are the eligibility requirements for FMLA leave?
-Employee must have worked for a covered employer for at least 12 months (do not have to be consecutive months) and for a minimum of 1,250 hours over the 12 months prior to the start of leave.
Page 215
With regard to FMLA leave eligibility, define “covered employer”.
-Public agencies (state and local employers)
-Local schools
-All private-sector employers who employ 50+ employees within a 75-mile radius (including WFH employees who don’t live within the 75-mile radius)
Page 215
When are employees allowed to take unpaid FMLA leave?
-Birth of a new child
-Adoption or foster care of a new child
-To care for a seriously ill spouse, minor child, or parent (not a parent-in-law)
-Employee has a serious health condition
-Spouse, child, or parent of a person on or about to be on active military duty for any “qualifying exigency”
-Spouse, child, parent, or next of kin needs to care for a family member who has a serious illness or injury during military service
Page 215
Define “serious health condition” per FMLA.
An illness, injury, impairment, or physical/mental condition that involves:
-Any period of incapacity or treatment connected with inpatient care
-A period of incapacity requiring absence of more than 3 calendar days from work, school, or other regular daily activities that also involves continuing treatment by (or under supervision of) a health care provider
-Any period of incapacity due to pregnancy or prenatal care
-Any period of incapacity (or treatment therefore) due to a chronic serious health condition (e.g. asthma, diabetes, epilepsy, etc.)
-Permanent/long-term incapacity due to a condition for which treatment may not be effective (e.g. stroke, Alzheimer’s, terminal diseases, etc.)
-Any absences to receive multiple treatments (and recovery therefrom) by a health care provider for a condition that likely would result in incapacity of more than 3 consecutive days if left untreated (e.g. chemotherapy, dialysis, physical therapy, etc.)
Pages 215-216
Under what condition may a parent use FMLA to care for an adult child?
-If they are “incapable of self-care” due to a mental/physical disability that limits one or more of the major life activities.
Page 216
In addition to 12 weeks of FMLA time, how many weeks of military-caregiver leave are allowed for families of service members injured in the line of duty?
-26 weeks
-Spouses who work for the same employer can use no more than 26 weeks combined for this leave.
Page 216
With regard to HIPAA, define “Break in Coverage”.
-A break in coverage longer than 63 days.
-This could subject an employee to a preexisting condition exclusion for the first 12 months of new employment.
-18-Month wait is allowed if a person doesn’t enroll in a health plan during the 1st available enrollment opportunity.
Page 217
What are the HIPAA tax benefits for those who are self-employed?
-They may deduct 80% of their health-care expenses from their taxes.
-Money from IRAs may be used for medical expenses without the 10% tax penalty or if they receive at least 12 weeks of unemployment compensation.
Page 217
Which employers are required to provide affordable health coverage?
-Applicable large employers (ALE) who have at least 50 full-time employees
Page 218
What consequence do ALEs face for not providing affordable health coverage to its employees?
-Applicable large employers have to pay an “A” penalty if even one employee receives a federal subsidy and buys coverage in exchange.
Page 218
Per the Affordable Care Act, define “full-time employee”.
-Any employee who averages 30 or more hours/week, or 130 hours/month.
Page 218
How should a company determine whether to provide health coverage for its part-time employees?
Sum of hours worked by part-time employees in a month/120.
Page 218
What is the equation for the “A” penalty?
# of FTEs employed for the year (minus up to 30) x $2,500 -(As long as at least one FTE receives the premium tax credit) Page 218
Name some of the benefits that health plans are required to provide.
-Ambulatory patient services
-Emergency services
-Hospitalization
-Maternity/newborn care
-Mental health/substance use disorder services
-Prescription drugs
-Rehabilitative services/devices
-Lab services
-Preventive/wellness services
-Pediatric services
-Vision and oral care for children
Page 218
What are some covered “preventive services”?
-Routine immunizations
-Depression screenings
-BP, diabetes, cholesterol tests
-Mammograms/cancer screenings
-Prenatal care
-Wellness visits for babies/children
Page 219
Health-care plans must cover 100% of preventive services except when?
Cost-sharing can be required for out-of-network preventive services.
Page 219
What are the only criteria allowed to determine health insurance premiums?
-Age
-Tobacco use
-Family composition
-Geographic location
Page 219
A plan provides minimum value if it covers at least what percent of the total allowed cost of benefits that are expected to be incurred under the plan?
60%
Page 219
What is the “B” penalty?
-The penalty that employers must pay for each FTE who purchases health coverage through a health exchange because his/her premium is more than 9.5% of his/her household income.
Page 220
What are three methods that can be used to determine an employee’s household income?
- Amount shown on W-2 Form
- Hourly pay rate x 130 hours
- Use federal poverty line for a single individual.
Page 220
The maximum reward or penalty for wellness programs to prevent/reduce tobacco use can be as much as what percent of the individual premium?
50%
Page 220
What is a medical loss ratio?
The percent of premiums that are spent on health expenses versus overhead, salaries, and profits.
Page 221
What is the medical loss ratio for small employers with fewer than 100 people?
80%
Page 221
What is the medical loss ratio for employers with more than 100 employees?
85%
Page 221
An additional Medicare tax of 0.9% is imposed on individuals with annual incomes in excess of how much?
-Individuals: $200k
-Jointly: $250k
Page 221
What is an employer required to report on each employee’s W-2 form if it issued more than 250 W-2 forms in the prior calendar year?
-It is required to report the cost of coverage under its employer-sponsored group health plan.
Plan 221
Per ERISA what are the eligibility requirements to participate in a pension plan?
-Employees who have 2 years of service
-One year of service = 1,000 hours of employment in 12 months
Page 222
Define “Vesting”.
-The employee’s right to receive the money contributed to his/her pension fund by an employer even if he/she terminates employment with the employer.
Page 222
Define “Cliff Vesting”.
-An employee becomes fully vested in a retirement plan after a specified period of time.
Page 222
What is the time limit for “cliff vesting”?
-An employee is fully vested upon the completion of three years of service.
Page 222
Define “Graded Vesting”.
-An employee becomes partially vested in a retirement plan after an initial period of time, then becomes fully vested in an additional percentage each year until fully vested.
Page 222
What is the schedule/time limit for “graded vesting”?
20% Vesting after 2 years of service and then an additional 20%/year thereafter until 100% vesting after six years of service.
Page 222
Define “Portability”.
-The ability to transfer pension monies from one pension fund to another when an employee changes employers.
Page 222
True or false? Portability is not required under ERISA?
True.
Page 222
Define “Contributory Pension Plan”.
-A plan in which both the employees and the employer make contributions to the pension fund.
Page 222
Define “Noncontributory Pension Plan”.
-A plan in which contributions are made solely by the employer.
Pages 222 - 223
Define “Fiduciary Responsibilities”.
-Responsibilities of the person who manages a pension fund.
Page 223
What must employers do whenever a material change is made to their pension plans?
-They must notify their plan participants.
Page 223
Who must receive a detailed annual report about the financing and operation of the pension plan?
-All plan participants
-The secretary of labor
Page 223
Define “Consolidated Omnibus Budget Reconciliation Act” (COBRA).
-A law that requires employers with 20+ employees to extend health insurance group benefits to terminated employees, employees with reduced hours, or their family members.
Page 224
Define “Qualified Beneficiary”.
-An individual who’s eligible for continuation of benefits under COBRA.
-(e.g. Employees, their spouses, or their dependent children)
Page 224
Define “Qualifying Event”.
-An event that triggers the beginning of COBRA coverage.
Page 224
What are the qualifying events that can trigger COBRA coverage?
-Voluntary/involuntary termination of employment, except for “gross misconduct”
-Reduction in work hours that would result in a loss of regular benefits
-Employee death
-Divorce/legal separation from the employee
-Employee becomes “disabled” and entitled to Medicare
-The dependent ceases being a “dependent child” under the plan rules
Pages 224-225
How many additional months of COBRA coverage does a disability allow a beneficiary to receive?
-An additional 11 months, for a total of 29 months?
Page 225
What would allow a beneficiary to receive a total of 36 months of COBRA coverage?
-If the employee becomes disabled, and another qualifying event occurs.
Page 225
What events cause the loss of COBRA coverage?
-The premium is not paid
-The employer terminates group health coverage
-The beneficiary becomes covered under another group health plan
-The qualified beneficiary is entitled to Medicare benefits
Page 225
How many days from the date an employee becomes covered under the benefit plan does a plan administrator have to provide the general notice of COBRA rights to the employee and spouse?
90 days.
Page 225
What is an “Election Notice”?
-A notification by employers to employees within 14 days after a qualifying event that describes the COBRA coverage and the premiums.
Once an employee/former employee receives an election notice describing the coverage and premiums, how many days does he/she have to elect continuation of coverage?
60 days
Page 225
When must employers send a notice of unavailability?
-Whenever the plan administrator denies coverage to a beneficiary, stating why they are not entitled to continuation.
Page 225
What must a Notice of Termination of Continuation do?
-Explain why coverage has terminated
-Provide termination date
-Describe any rights the qualified beneficiary may have to elect alternative group or individual coverage.
Page 225
The cost of group life insurance is taxable income if the amount for which an employee is insured is _?
$50,000
Page 226
Define “Imputed Income”.
-Reimbursements or expenses paid by an employer that are treated as taxable income to the employee, such as excessive moving expenses.
Page 226
What should employers do to test whether “no-additional-cost” services provided to employees should be added to employees’ taxable income?
-They should count any lost revenue as a cost.
-They should not reduce the costs they incur by any amount the employee pays for the service.
Page 226
What is the max amount of money that can be excluded from the employee’s wages for educational expenses?
$5,250
Page 227
With reference to educational assistance, what types of “educational expenses” can be excluded from an employee’s wages?
-Textbooks
-Tuition
-Equipment
-Fees
Page 227
What are “Merit Increase Grids”?
-Guidelines provided by the HR department recommending appropriate pay increases for different performance levels.
Define “Percent of Payroll”.
-A method of calculating costs of employee benefits by expressing the cost as a percentage of the total payroll costs.
Define “Personal Leave”.
-Paid leave that can be used for illness, vacation, or accumulated for early retirement.
What is “Sick Leave”?
-A program that provides employees with the continuation of their regular pay when they are unable to work because of illness.
Define “Social Security”.
-A program designed as a forced savings plan in which employees save money during their working years to provide a pension after they retire.
Define “Variable Pay”.
-Performance-based pay such as individual performance bonuses, executive bonuses, gainsharing, group incentives, profit sharing, and other incentives tied to productivity (as opposed to fixed base pay).
With regard to “tax-free commuter benefits,” what are the monthly limits for transit and parking benefits?
$255 for each
Page 227
Define “Training”.
-The acquisition of specific skills or knowledge for the purpose of performing particular activities or a specific job.
Page 237
Define “Education”.
-The acquisition of general knowledge/information that usually results in a broadening of the responses students are likely to make.
Page 237
What’s the difference between “training” and “education”?
-Training involves learning specific skills/knowledge; tends to narrow the range of responses so that the trainees will respond similarly in a specific situation.
-Education involves knowledge that can be used/applied in many different settings; tends to broaden the range of responses so that those who have obtained a general education will respond to a particular situation in a variety of different ways.
-Training tends to narrow the range of responses so that all employees who have been trained will make the same response in a specific situation.
-(e.g. Teaching someone how to use a computer program vs. teaching someone how to program a computer using basic computer language)
Page 237
Define “Transfer of Training”.
-The process of transferring/applying the skills and knowledge that a trainee received to an actual job situation.
Page 238
What are the three possible transfer-of-training situations?
- Positive transfer-of-training
- Negative transfer-of training
- No observable effect of training
Page 238
Define “Positive Transfer of Training”.
-When the training activities enhance performance in the new situation.
Page 238
Define “Negative Transfer of Training”.
-When the training activities inhibit performance in the new situation.
Page 238
What are the four possible Transfer-of-Training situations?
- Same stimulus environments and learned responses = strong positive transfer of training
- Same stimulus environments, but different learned responses= negative transfer of training
- Different stimulus environments, but same responses = small positive transfer
- Different stimulus environments and different responses = no transfer
Page 238
What method do some trainers recommend using to effectively implement transfer of training?
-Require participants to develop a thorough, written action plan as part of the training program.
Page 239
Define “Apprenticeship”.
-A training technique in which the trainee (apprentice) works with a skilled employee who teaches the apprentice how to perform the job.
Page 240
What is the recommended annual minimum number of hours of related classroom instruction for an apprentice?
144 Hours each year.
Page 240
Define “Internship”.
- A learning experience in which students are able to work for a period of time and apply the information they have learned.
Page 241
Define “Cooperative Education”.
-A learning experience that combines both work and education.
-Students work as employees in an organization under the direction of their supervisors and academic instructors.
Page 241
Define “Job Rotation/Cross Training”.
-A technique that involves transferring trainees to different jobs to broaden their focus and to increase their knowledge.
-An effective management training tool.
Page 241
What is “Action Learning”?
-It involves assigning trainees to real projects or committee assignments and having them learn while doing them.
Page 242
What are four things that an effective coach must do?
- Act as a good model that the trainee can identify with
- Set specific goals to help guide trainee’s behavior.
- Provide timely feedback on performance.
- Provide proper reinforcement and encouragement necessary for performance improvement.
Page 242
What are “Massive Open On-Line Courses” (MOOCs)?
-Internet-based courses and lectures, etc. created by university professors that are usually free of charge and available to students anywhere in the world who have internet access.
-Tuition must be payed to receive credit for the course.
Page 243
What are “Massive Open On-Line Courses” (MOOCs)?
-Internet-based courses and lectures, etc. created by university professors that are usually free of charge and available to students anywhere in the world who have internet access.
-Tuition must be payed to receive credit for the course.
Page 243
Define “Vestibule Training”.
-A training technique in which trainees are placed in a special training room that is a replication of the actual job situation.
Page 244
Define “Case Study”.
-A post test-only design where data are collected only after a training program has been completed.
Page 244
Define “Role Playing”.
-A training technique in which participants are assigned to act out the roles of other people.
Page 245
Define “Role Reversal”.
-A form of role playing in which two or more participants exchange roles and act out a situation.
Page 245
Define “Freeze Framing”.
-A training technique that involves pausing the video replay of a role-playing scenario, and asking the participants (and possibly observers) to critique what is happening.
Page 245
Define “Simulation”.
-A training technique in which the trainee learns to respond in a training environment that is a reproduction of real-life conditions.
Page 246
What is a “Programmed/Experiential Group Exercise”?
-Activities that involve group discussion and decision-making processes.
-Group members learn from participation in the activity and from group discussion about the activity.
Page 246
What is “Outdoor Experiential Training (OET)”?
-Programs that are intended to improve the effectiveness of management skill areas such as teamwork, problem solving, risk taking, self-esteem, and interpersonal communication.
-Examples: Ropes courses, backpacking, rock climbing, etc.
Page 247
Define “Asynchronous Learning Networks”.
-Networks of people involved in anytime-anywhere learning.
-Examples: web-based workshops, courses that require users to use email to discuss assignments.
Page 247
Define “Programmed Instruction”.
-A training technique that arranges the training material in small sequential steps.
-The ideas are presented one at a time to give the trainee a chance to respond to the material, and master it.
Page 248
Define “Computer-Assisted Instruction”.
-A form of programmed instruction wherein the trainee interacts with a computer to learn new information, and answers questions asked by the computer.
Page 248
Define “Linear Sequencing”.
-A training method in which a logical sequence of concepts serves as building blocks for more complex learning.
Page 248
What are five advantages of on-the-job training techniques?
- No special space/equipment usually required
- It’s practical since employees produce/earn while they learn.
- It provides immediate transfer of training.
- It allows employees to practice what they’re expected to do once training ends.
- It allows trainees to interact with their new coworkers, and observe/model their behavior.
Page 249
What are three benefits of formal off-the-job training?
- They allow executives to get away from job pressures, and think for themselves without being pressured by colleagues, etc.
- They provide resources (people and materials) that contribute suggestions and ideas for the executives to consider as they change, grow, etc.
- They challenge executives to increase their development and motivate them to improve.
Page 250
What environmental factors should be considered when selecting a training environment?
-Temperature
-Lighting
-Ventilation
-Sound
-Comfortable chairs
Pages 251-252
What are some typical kinds of training materials?
-Manuals
-Handouts
-Leader Guides
-Audio-Visual Materials
Page 252
When do trainers need to obtain written permission if using copyrighted materials in their training manuals?
-If using more than 250 words from a book-length work
-If using more than 5% of an article from a journal or a book of readings
-If using any part of a poem or a song
Page 254
When is permission NOT needed for copyrighted training materials?
-If the information is in the public domain (e.g. federal government, etc.)
-If the information’s author has been deceased for more than 70 years.
Page 254
Where can permissions for most publications be obtained from?
-Copyright.com (Copyright Clearing Center)
-Broadcast Music Inc. or American Society of Composers and Performers (music or video clips)
-Getty Images or Corbis (images)
Page 254
What are Donald Kirkpatrick’s four criteria for evaluating training programs?
- Reactions
- Learning
- Behavior
- Results
Page 256
Jack and Patricia Phillips propose that organizations develop training evaluation criteria using what objectives?
- Reaction and perceived values
- Learning and confidence
- Application and implementation
- Impact and consequences
- Return on investment
Page 257
Define “Application Objectives” (with regard to training programs).
-Explains how skills gained in a training program will be applied by trainees on the job.
Page 257
Define “Impact Objectives” (with regard to training programs).
-Describe how the application of the new skills by trainees will impact the organization.
Page 257
Define “Utility Analysis” (with regard to training programs).
-A cost-benefit analysis of training.
-(i.e. What’s the ROI from the training?)
Page 257
What two procedures help new employees retain information?
- Receive written information
- Spread the training over time
Page 261
What are the guidelines for developing an effective new employee training program?
- Begin with most relevant information.
- Have mentors/sponsors help new employees learn what is expected of them
- Gradually introduce new employees to members of the work group
- Spread out orientation training over a period of time
- Provide both oral/general info and written/specific info.
Page 262
Define “Onboarding”.
-A systematic approach to fully integrating a new employee into an organization and its culture.
Page 262
Define “Onboarding Portal”.
-An online system that organizes all activities related to successfully integrating a new employee into an organization.
Page 262
What are some onboarding activities that might be done before the employee’s first day?
-Call/email to welcome new employee
-Confirm their start date, when/where to report to work, etc
-Provide access to employee onboarding portal
-Give directions/timeline for completing forms
-Clean/prepare their work area
-Order business cards, nameplate, etc.
-Prepare keys, keycards, badges
-Set up their phone, computer, emails, etc.
-Assign them a mentor
-Notify relevant employees of the new employee’s start date
Page 263
What are some onboarding activities that might be done on the employee’s first day?
-Greet the employee
-Introduce them to others
-Connect them with their mentor
-Provide them with a schedule of the 1st week
-Take them on a tour of facility
-Explain safety/emergency protocols
-Describe how their job fits in the department, and how their job/department contribute to overall mission, etc. of the company
-Arrange lunch for them with their coworkers
-Provide time for them to complete any necessary tasks in onboarding portal
-Ensure that their initial employment paperwork has been completed (I-9, W-4, bank routing info, benefits election, etc.)
-Review policies, procedures, job duties, expectations, etc.
-Explain how to obtain supplies, materials, etc.
Page 263
What are some onboarding activities that might be done during the employee’s first week?
-Give them his/her first assignment
-Have him/her meet with his/her mentor to address any questions or concerns they may have after attending initial meetings, trainings, etc.
-Explain company’s goal-setting process, annual performance review procedures
-Schedule time for employee to do any necessary tasks/trainings on the onboarding portal
Page 263
What are some onboarding activities that might be done during the employee’s first 90 days?
-Provide feedback regarding their 1st assignment; make additional assignments as needed
-Request feedback from the employee; respond to their ?s/concerns
-Discuss employee’s professional goals
-Have employee/mentor meet regularly to assess his/her needs/progress
-Provide employee chances to meet others in the company
-Schedule time for him/her to complete any tasks/trainings on the onboarding portal
Page 264
What are some onboarding activities that might be done at the employee’s six month mark?
-Conduct a 6-month performance review
-Review his/her progress on performance/professional development goals
-Give them additional assignments that use/stretch their developing skills and competencies
-Have employee/mentor continue to meet regularly
-Schedule time for employee to complete any tasks on the onboarding portal
Page 264
What are some onboarding activities that might be done at the employee’s one year mark?
-Conduct a formal review of their 1st year’s performance
-Celebrate their successes during the 1st year with the company
-Meet with the employee and their mentor to discuss their mentor-mentee relationship
-Discuss his/her professional development goals, identify potential learning/development opportunities
-Schedule time for him/her to complete any necessary tasks/trainings on the onboarding portal
-Request feedback from employee regarding onboarding process
Page 264
Define “Career”.
-The sequence of work-related experiences individuals acquire during the span of their work lives.
Page 265
Define “Career Ladders”.
-Very well-defined career paths.
Page 265
Define “Career Lattice”.
-Career advancement to higher levels within an organization that involves occasional lateral moves to different occupations or departments.
Page 265
Define “Career Plateau”.
- A point in a person’s career when the probability of the person moving up the organizational ladder is very low.
Page 266
What is a “structural plateau”?
-It occurs when people reach the end of their promotion opportunities, and will have to leave the organization to find new opportunities.
Page 266
What is a “content plateau”?
-It occurs when a person has mastered a job and becomes bored with daily activities.
Page 266
What is a “life plateau”?
-It occurs when a person lacks meaning and purpose in life.
-(a.k.a. “Midlife crisis”)
Page 266
How can companies help employees cope with plateaus when there are no opportunities for advancement?
-By providing opportunities for lateral growth.
Page 266
What are three recommended strategies for enhancing one’s employability?
- Managing one’s identity
- Self-training and networking
- Voluntary and marginally paid work
Page 267
Define “Obsolescence”.
A reduction in ability or effectiveness caused by a lack of knowledge or skill due either to forgetfulness or the creation of new knowledge and technology.
Page 267
Define “Career Pathing”.
-Identifying a sequence of jobs through which individuals can expect to progress toward higher levels of management.
Page 268
Define “Mommy/Daddy Track”.
-A flexible career path for mothers and fathers who need greater flexibility in structuring their careers since their primary interests are in the home rather than in their job.
-Example: Allowing new mothers/fathers to work part-time instead of prematurely returning to work full-time after the birth of a baby.
Page 268
Define “Performance Management”.
-The process of improving job performance through performance planning, performance evaluation, mentoring, and continuous feedback.
Page 270
Effective performance management involves what three processes?
- Goal Setting
- Performance Reviews
- Performance Improvement Plans
Page 270
What are some recommended elements of effective goal setting?
Set goals that: -Involve managers and individuals in goal-setting -Are documented (electronically or paper) -Are specific -Are measurable (and results) -Are challenging but attainable -Are relevant to the individual -Have a timeline for results -Are flexible to account for change -Are monitored -Align with company’s business philosophy, vision, mission statement Pages 270-271
What four processes are recommended as a minimum for effective performance reviews?
- Feedback process to employees should be continuous throughout the review period.
- Performance should be judged based upon goals that were originally set.
- Review outcomes should be documented/acknowledged by both parties.
- At least one face-to-face conversation between manager and employee per year.
Page 271
What is a “PIP”?
-Performance Improvement Plan
-A detailed plan that outlines/documents an employee’s deficiencies, and outlines how they need to improve.
-It should be signed by the employee and manager.
Page 271
Define “Leniency-Strictness Effect”.
-An evaluation bias in which some evaluators tend to give mostly favorable ratings to each employee while others tend to evaluate the same performance levels less favorably.
Page 272
Define “Central-Tendency Effect”.
-A type of performance evaluation bias
-Tendency to give average ratings to all employees.
Page 272
Define “Inter-rater Reliability”.
-Different ratings given by two different evaluators observing the same behavior.
Page 272
Define “Sequencing Effect/Contrast Error”.
-An evaluation bias that occurs when an employee’s ratings are influenced by a relative comparison with the previous employee.
Page 272
Define “Zero-Sum Problem”.
-An evaluation bias wherein the number of above-average ratings has to be balanced by an equal number of below-average ratings.
-Thus, some employees are forced to receive low ratings regardless of their performance.
Page 272
Define “Recency Effect”.
-An evaluation bias in which recent events are weighted more heavily in the mind of the evaluator than earlier events.
Page 273
Define “Primacy Effect”.
-An evaluation bias in which the individual’s earliest performance is weighted more heavily in the mind of the evaluator than more recent events.
Page 273
Define “Classification Procedures”.
-An evaluation procedure in which employees are simply placed in different categories (such as outstanding, superior, excellent, good, etc.) describing their overall performance.
Page 273
Define “Forced Distribution”.
-An evaluation method that involves placing quotas on the number of individuals who can be put in each category.
Page 274
What is “Straight Ranking”?
-When an evaluator considers all members in a group and identifies the best one who is ranked number one, then the second best employee is ranked number two, and so on.
Page 275
What is “Alternate Ranking”?
-An evaluation procedure in which employees are ranked by identifying the best and worst employees on a list. These names are then removed from the list, and the best and worst of the remaining names are identified. The process is repeated until everyone on the list has been ranked.
Page 275
What is a “Paired Comparison”?
-An evaluation procedure that ranks employees by comparing each employee with every other employee.
Page 275
What is the formula for computing the number of paired comparisons in a group?
N(N-1)/2
Page 275
Define “Graphic Rating Scales”.
An evaluation procedure used to evaluate both performance-related characteristics and personality characteristics.
Page 276
Define “Rated Ranking”.
-An evaluation procedure that combines a ranking procedure with a rating process.
Page 277
Define “Forced-Choice Technique”.
-An evaluation method that contains pairs of items, both sounding equally desirable, but only one item in each pair is actually descriptive of an outstanding performer.
Page 278
Define “Weighted Checklist”.
-An evaluation method that consists of a list of behaviors that evaluators use to describe the performance of employees
Page 279
Define “Critical-Incidents Method”.
-An supervisor’s/observer’s descriptions of behaviors that are especially effective/ineffective.
Page 280
Define “Free-Form Essay”.
-Essays that supervisors/observers write to describe an employee’s performance.
Page 281
What are the focuses of “Management by Objectives” (MBO)?
- Developing organizational LRPs to shape the org.’s future
- Results-focused, not activity-focused
- Improving individual and organizational competence/effectiveness.
- Increasing involvement of employees in the affairs of the organization.
Page 281
What management functions does “Management by Objectives” involve?
-Developing clear, precise organizational objectives
-Developing individual objectives designed to achieve organizational objectives
-Performance review/measurement
-Taking corrective actions (when needed) to achieve the planned objectives
Page 281
What are the four principles of MBO?
- Goal Setting
- Delegation
- Feedback reviews
- Evaluation
Page 281
Define “Cascading Process”.
-The procedure used in MBO programs whereby top corporate goals are translated into goals for each successively lower level in the organization.
Page 281
Define “Performance Contracts”.
-A recent adaptation of MBO in which employees agree to specific, written standards of conduct and productivity as part of the performance review process.
-The purpose is to increase motivation by rewarding desirable behaviors.
Page 283
Define “BARS”.
-Behaviorally Anchored Rating Scales
-A type of graphic rating scale where each point along the scale is accompanied by a specific behavioral description.
Page 283
Define “BES”.
-Behavior Expectation Scales
-Performance evaluation scale that uses behavioral anchors that describe the kinds of behaviors an employee could be expected to do.
Page 283
Define “BOS”.
-Behavioral Observation Scales
-A rating method similar to BARS that asks the rater to evaluate the frequency of the behavior rather than the quality of the behavior.
Page 284
BOS can help improve what three goal setting attributes?
- Goal clarity
- Goal acceptance
- Goal commitment
Page 284
Define “Retention Rate”.
-The proportion of employees who remained employed during the entire period of time that is being analyzed.
Page 286
In addition to monthly retention rate, what are some other retention rates that companies may use?
Retention rates for: -New-hires -High-performers -Departments -Job-Classes Page 286
What is the formula for calculating retention rate?
# employees who remained the entire month/ # employees at the start of the month x 100 Page 286
Define “Turnover Rate”.
-It includes ALL employees who left the organization during the period, regardless of hire date.
True or false: Employees who are laid off are included in monthly turnover rate calculations in the BNA’s quarterly survey?
-False.
-Turnover rate calculations are only a measure of those who quit or were dismissed.
Page 287
Define “Voluntary Turnover”.
-When employees have the choice to continue working, but choose to resign.
Page 287
Define “Involuntary Turnover”.
-When employees are terminated for reasons beyond their control.
Page 287
In addition to monthly turnover rate, what are some other types of turnover rates that may be calculated?
-Voluntary
-Involuntary
-Regrettable
-Non-regrettable
-Controllable
-Uncontrollable
Page 288
What are the four major turnover cost categories?
- Separation costs (exit interviews, separation pay, UI taxes)
- Replacement costs (recruiting/hiring costs)
- Training costs (orientation/on-the-job training costs)
- Lost performance
Page 289
Define “Stay Surveys”.
-Surveys that companies administer anonymously to reduce turnover caused by employee dissatisfaction.
Page 290
Name some strategies that employers may use to improve retention?
-Recruitment (Use realistic job previews)
-Selection
-Orientation/Onboarding
-Training/Development
-Career development
-Job design (Re-design jobs so that they’re meaningful/motivating
-Compensation
-Benefits (Some are tied to retention like vacation time)
-Flexible work
-Recognition
-Supervisor training
-Retirement
Page 291
What are the HR functions that an organization performs relevant to individual’s employment?
-Recruitment
-Selection
-Orientation/Onboarding
-Position training
-Development/Engagement
-Retention
-Transition
-Succession
-Separation
Page 302
What are the levels of employee engagement?
-Engaged employees
-Not engaged employees
-Actively disengaged employees
Page 304
Define “Engagement Survey”.
-A survey that contains questions that focus on cognitive, emotional, and behavioral components.
Page 304
What is “employee engagement”?
-How committed an employee is to his/her job and employer, and how enthusiastic/energetic he/she is for their work.
Page 304
Define “Employee Relations”.
-The working relationship between an employer and employee throughout the time the individual is associated with the organization.
Page 301
What are some practices that can improve employee engagement?
-Show trust and confidence in employees
-Provide employees the resources they need to excel in their jobs
-Recognize employees for their efforts
-Empower employees to act
-Provide meaningful interactions w/coworkers
-Assign a supportive supervisor
-Help employees balance work/life demands
-Provide training, coaching, etc.
-Solicit/act on feedback from employees
-Involve employees in community service projects
Page 305
How can HR policies/practices destroy employee engagement?
When they: -Limit employees in their work -Treat them unfairly -Ignore creative ideas -Restrict job-related info. -Isolate employees from others -Show lack of trust Page 305
What are the best ways to measure satisfaction?
-Employee interviews
-Employee questionnaires
Page 306
When should exit interviews be conducted?
-As soon as an employee announces he/she is leaving.
Page 306
Who should conduct exit interviews?
-A member of the HR staff who has not been directly involved in daily contact with the departing employee.
Page 306
What two scales are used to measure job satisfaction?
-Semantic Differential Scales
-Likert Scales
Page 307
How should questions be chosen for a Likert-type scale questionnaire?
-A broad sample of employees should be interviewed, and relevant questions should be generated based on the information attained from the interviews.
Page 307
What type of section should be included at the end of a questionnaire?
-Open-ended comments section to receive raw employee feedback.
Page 308
Define “Simple Random Sample”.
-Placing all employees in the sample population and drawing the sample at random.
Page 308
Define “Stratified Random Sample”.
-Categorizing employees into specified groups, such as job classification or organizational level, and then selecting individuals randomly within each group according to the group size.
Page 308
Define “Flextime”.
-An alternative to the standard workweek that allows employees to set their own work hours subject to certain constraints like requiring everyone to work a certain amount of hours per day or week, or be at work during a core period.
Page 309
What are some advantages of flextime?
-It virtually eliminates tardiness
-It reduces absenteeism
-It’s easier to schedule personal time/appointments
-Employees can schedule their work to match their biorhythm
-It reduces traffic congestion
-It provides greater flexibility in handling uneven workloads
-It provides increased customer service due to being open longer
Page 310
What are some disadvantages of flextime?
-Increased communication problems during flexible hours
-Attendance records can become a problem
-Providing supervisions for 12-15 hours a day can become a problem
-Hourly pay problems may occur, especially with overtime hours
-Higher utility costs
Page 310
Define “Compressed Workweek”.
-An alternative work schedule in which employees work more hours per day in exchange for working fewer days per week.
Page 310
What are some advantages of a compressed workweek?
-Lower commuting time/costs
-Increased employee leisure time
-Greater job satisfaction/morale for those who like it
-Lower set-up and clean-up costs on certain jobs
Page 310
What are the disadvantages of a compressed workweek?
-Increased fatigue
-More accidents/safety violations
-Not compatible with most people’s schedules
Page 310-311
What is a “core period”?
-The period of time when employees on flexible work hours must be at work.
Page 309
Define “Regular Part-Time”.
-A work arrangement that enables employees to work less than 35 hours/week.
-Considered a regular rather than a temporary part-time job.
Page 311
What are the disadvantages of regular part-time jobs?
-Creates administrative/scheduling problems
-Increases benefits costs
Page 311
Define “Job Sharing”.
-When a full-time position is split into two part-time positions, and the duties are assigned to two separate employees.
-They split the salary and benefits
Page 311
What is “job pairing”?
-A form of job sharing in which both part-time employees are held responsible for the whole job.
Page 312
What are some advantages of job sharing?
-Increased productivity
-More flexibility in scheduling work assignments
-Lower absenteeism, turnover
-Improved job training
-Ideal alternative for those who can’t do a full-time job (parents, disabled, elderly, etc.)
Page 312
What is the primary advantage of a phased retirement program?
-It can help reduce a surplus of labor for companies involved in downsizing
Page 313
Companies save an average of $__ per year for each employee who commutes at least 50% of the time.
11,000
Page 313
What is the Wagner/NLRA?
-National Labor Relations Act of 1935
-Established the legal right for labor unions to exist.
-Established the NLRB.
Page 315
Per the Wagner Act, what are the five unfair labor practices?
Employers may not:
1. “Interfere with, restrain, or coerce employees in the exercise of their rights under Section 7”.
2. Form company unions.
3. Discriminate against employees based on union membership status/activity (hiring, firing, etc.).
4. Discharge/discriminate against employees who file charges with/give testimony to the NLRB
5. Refuse to bargain in good faith with reps. of the employees.
Pages 315-316
Define the National Labor Relations Board (NLRB).
-Established by the Wagner Act
-It conducts representation elections and determines the bargaining agent.
-Investigates/resolves unfair labor practice charges
Page 316
Define “Representation Election”.
- An election that is held to determine whether the workers want to be represented by a union.
- Conducted by the NLRB.
What are the provisions of the Taft-Hartley Act?
Labor unions:
-Cannot threaten or force employees to join a union, prevent employees from crossing picket lines, retaliating against those who testify against the unions
-Cannot force an employer to discriminate against an employee in any way except for when the employee has failed to pay union fees/dues.
-Must bargain in good faith with employers regarding wages, hours, etc.
-Cannot conduct certain types of strikes/boycotts (force companies to boycott suppliers, etc.)
-Cannot charge excessive initiation fees/dues when all employees are required to join a union shop.
-Cannot force employers to pay for work/services that are not needed (feather bedding).
Page 316-317
What is the process for organizing a labor union?
-At least 30% of the workers must sign authorization cards calling for a union to represent them.
-After the NLRB investigates, it holds an election.
-At least 50% of the vote is necessary to form a union.
-If a union is formed the employer must enter into collective bargaining negotiations with the union reps.
Page 317
What is the process for decertifying a union?
-The same procedure for certifying a union.
Page 317
Define “Grievance”.
-In a unionized company, a work-related complaint of formal dispute that is brought to the attention of management.
Page 319
What are the five steps of the full grievance procedure for unionized companies?
- Complaint submitted to supervisor; if no resolution reached -> Step 2.
- Grievance is in writing; union steward represents the employee, superintendent/industrial relations office represents employer; if union dissatisfied with the decision made -> Step 3.
- Union (plant grievance committee) vs. employer (plant manager/director of industrial relations); if grievance still not settled -> arbitration.
- (This step for large companies) Corporate officers meet with reps of the international union; if unsettled -> Step 5
- Binding arbitration - both sides agree beforehand to accept the 3rd party/arbitrator’s decision.
Pages 320-321
Define “Complaint System”.
-A nonunion company grievance procedure designed to hear and respond to employees’ complaints.
Page 321
What are the five types of complaint systems in non-union companies?
- Grievance Committees
- Ombudsman
- Grievance Appeal Procedures
- Open-Door Policies
- Fact-Finding Methods
Page 321- 323
How do Grievance Committees function?
-Committee members may be appointed by management or elected by employees.
-They hear the evidence and either issue a judgment or (in some companies) make a recommendation to the president.
Page 321
Define “Ombudsman”.
-An impartial employee designated by an organization to hear complaints from members who feel powerless and unable to obtain a fair hearing on their own.
Page 322
How does a non-unionized grievance appeal procedure function?
-Normally conducted by a neutral company executive who hears evidence/makes a judgment
-Usually an informal appeal system that can be stopped by management at any time without a guarantee that the appeal will reach top officers.
-Ultimate appeal usually made to top officers, but does not go to arbitration.
Page 322
Define “Open-Door Policy”.
-A policy that allows all employees, regardless of position, the right to discuss a complaint with top corporate officers without being forced to go through a chain of command.
Page 323
How does the fact-finding method function?
-Normally conducted by an HR executive or an assistant to an executive
-Fact-finders examine problems without conducting formal hearings
-Fact-finders are expected to prepare a recommendation (training, transfer, discipline, or compensation for the victim).
Page 323
What three things must employees believe in order to have an effective grievance procedure?
- Their complaints can be presented without a lot of hassle, embarrassment, or paperwork
- Their complaints will be evaluated fairly by an impartial 3rd party
- They won’t be fired or mistreated for submitting their complaints
Page 323
Define “Whistle blower”.
-An individual who observes an illegal or immoral action and makes the information public.
Page 324
What are the provisions of the False Claims Act of 1986?
-It allows whistle blowers who uncover fraud involving the federal government to sue the perpetrator in federal court, and entitles them to a percentage of the funds recouped by the government.
-It allows the aforementioned whistle blower to sue for retaliation if mistreated for suing.
Page 324
Per the False Claim Act, what is “qui tam relator”?
-A whistle blower who uncovers fraud involving the federal government.
Page 324
What is the purpose of imposing time limits when filing a grievance?
-To force both the employer and the union to address the grievances immediately.
Page 324
What should supervisors do to reduce the number of appealed grievances?
-Treat all complaints seriously
-Investigate/handle each case as if it may end in arbitration
-Discuss the grievance with him/her ASAP; give them a full hearing
-Correct the problem if the company is wrong
-Examine the labor agreement carefully; contact HR for clarification
-Collect evidence, witness testimony
-Remain calm
-Examine all evidence before making a decision
-Avoid delays; when all information is in, make/communicate a decision
Page 325
Define “Alternative Dispute Resolution”.
-Methods of resolving disagreements without litigation, including negotiation, mediation, binding arbitration, and rent-a-judge services.
Page 326
Define “Progressive Discipline”.
-A system of discipline where the disciplinary actions become increasingly severe.
Page 327
What are the steps in the progressive discipline process?
- Verbal warning
- Verbal reprimand
- Written reprimand
- Suspension
- Discharge
Pages 327-329
What should a supervisor do if an employee refuses to sign a written reprimand?
-The supervisor and a witness should sign the written reprimand, noting that the employee received a copy, but refused to sign it.
Page 328
What are the guidelines for effectively investigating claims of misconduct?
-Investigate promptly (w/in 1-2 days of complaint; conclude w/in 1-2 weeks
-Appoint an internal impartial investigator to investigate
-All complaints should be in writing
-Interview the complainant, offender, and any one else w/info about the allegations
-Document the entire process (interviews, actions taken, evidence)
-Protect the privacy of all parties involved, but don’t promise confidentiality; communicate no retaliation for registering a complaint
-Review personnel files of offender and complainant for patterns of behavior
-Make/announce decision to both parties once all info has been reviewed
-If evidence of misbehavior -> take disciplinary action
-Advise complainant of disciplinary action; report any retaliatory actions
-Follow up with complainant periodically to ensure behavior has stopped
Pages 329-330
Define “Due Process”.
-Disciplinary actions follow an accepted procedure that protects an employee from arbitrary, capricious, and unfair treatment.
Page 330
Define “Just Cause”.
-Disciplinary action should only be taken for good and sufficient reason.
Page 330
Define “Employment-at-Will Doctrine”.
-The practice that allows employers to hire whomever they want for as long as they want; either party may terminate the employment relationship at any time without prior warning.
Page 332
With regard to “at-will” exceptions, what are some examples of public policy violations?
-Firing someone for choosing to serve on a jury when she could have been excused due to her job.
-Firing someone for refusing to lie to a legislative committee.
Page 333
Define “Implied Contract”.
-An oral or written promise by an employer to continue the employment relationship either indefinitely or for a designated time.
Page 333
Define “Promissory Estoppel”.
-An exception to the employment-at-will doctrine that occurs when an employer makes a promise on which the employer reasonably expects the employee to rely, the employee does rely on it, and, as a result, the employee is injured financially or professionally.
-Ex: Telling an employee that she will keep her job provided she keeps up the good work may alter the “at-will” relationship, and require just cause before she can be terminated.
Page 333
What is “tort”?
-It refers to a wrongful act or injury done willfully, negligently, or in circumstances in which people, their property, or their reputations are harmed.
Page 334
Define “Defamation”.
-Refers to making slanderous or libelous statements about a person that harm the person’s reputation or professional credibility.
Page 334
What three types of evidence must be provided to prove a case of defamation?
- False/malicious statement was made to another person either verbally or in writing
- The person was harmed by the statement
- There was no legitimate business reason for the statement to be made
Page 334
Define “Compelled Self-Defamation”.
-When an employee has to defend him/herself against inaccurate/derogatory reasons for being terminated by his/her previous employer.
Page 334
What are the four types of personal invasion that can create a tort claim?
- Using another’s name or likeness without consent
- Lying about someone in the public eye
- Public disclosure of one’s private information about one’s personal life
- Intruding upon the seclusion of another (e.g. entering a private place like one’s office, desk drawers, etc.)
Page 335
What must an employee do to charge an employer with “intentional infliction of emotional distress”?
-He/she must be able to show severe physical or psychological damage that is directly caused by the employer’s conduct.
Page 335
Define “Fraudulent Misrepresentation”.
-It occurs when an employer intentionally misrepresents the truth, thereby causing severe damage for an employee.
Page 335
What are some typical examples of fraudulent misrepresentation?
-When employers make false promises of employment that cause the employee to turn down other job offers.
-When employers don’t provide promised benefits to terminated employees.
Page 335
Define “Insubordination”.
-When an employee refuses to follow a supervisor’s instructions.
Page 338
In what type of situation do arbitrators usually uphold disciplinary actions involving verbal abuse of supervisors?
-If the language was used to embarrass, ridicule, or degrade a supervisor, and if other employees were present to hear it.
Page 338
Name some unacceptable behaviors that have been proposed for inclusion in anti-bullying policies.
-Constant and unfair criticism
-Excessive teasing
-Yelling, shouting, and screaming
-Insults and behind-the-back put-downs
-Hostile glares and other intimidating gestures
-Malicious gossip
-Hoarding supplies, etc.
-Aggressive emails or notes
-Overt threats, aggression, or violence
Page 338
When is the only time that unsatisfactory performance should be considered a discipline problem?
-When someone is not motivated to do their job (lazy).
Page 339
Define “Voluntary Absenteeism”.
-When an employee intentionally decides to miss work.
Page 341
Define “Involuntary Absenteeism”.
-When an employee misses work for reasons beyond his/her control.
Page 341
What is a planned absence? Give an example.
-An absence that is pre-approved and scheduled in advance.
-Ex: surgeries, PTO, etc.
Page 341
What is an unplanned/incidental absence? Give an example.
-An absence that is usually due to illness, and does not last longer than a week.
-Ex: Getting the flu, caring for a sick dependent child, etc.
Page 341
What is an extended absence? Give an example.
-An absence (usually unplanned) that lasts more than a week, and is typically due to a disability/qualifying event under FMLA.
-Caring for a spouse who is still not well/better from a medical event, etc.
Page 341
What is an intermittent absence? Give an example.
-An absence that lasts a few minutes, hours, or days, and is caused by a previously certified medical condition.
-May be anticipated or unanticipated
-Ex: Follow-up medical appts., reoccurrence of a disability, etc.
Pages 341-342
What is the equation for job absence rate?
# of worker-days lost through job absences during the month x 100 / (avg. # of employees) x (# of workdays) Page 342
What is “Presenteeism”?
-The practice of coming to work when ill and unable to work at full capacity.
Page 342
What are some common signs of alcoholism?
-Consistent tardiness - usually on Monday mornings
-Excessive absenteeism accompanied by excuses of minor illnesses
-Hangover symptoms (headaches, thirst, shaking, procrastination, etc.)
-Deterioration in quality of work
-Off-the-job problems (debts, family discord)
Page 343
What are the two kinds of sexual harassment charges recognized by the courts?
- Quid pro quo
- Hostile environment cases
Page 344
What is a quid pro quo charge of sexual harassment?
-“This for that” charge
-Sexual favors in exchange for job related favors/benefits.
Page 344
What is a hostile environment charge of sexual harassment?
-When a reasonable person finds that the harassing behavior unreasonably interferes w/ his/her work performance by creating an intimidating, hostile, or offensive work environment.
-Ex: Inappropriate touching, offensive jokes, lewd comments, pornographic pictures
Page 345
How can employees file sexual harassment charges w/out having to prove that the harassment caused physical/psychological damage?
-If the employee asks for the environment to be changed, but the employer fails to do so.
Page 345
Employers have a responsibility to prevent a hostile environment by preventing what kinds of behaviors or actions?
-Sexual innuendos/comments
-Jokes of a sexual/offensive nature
-Pornographic pics/media
-Propositioning an individual
-Staring/leering at another person
-Stalking someone
-Touching another person inappropriately
-Actual or threatened rape/assault
Page 345
What is a “preponderance of the evidence” standard?
-Concerning sexual harassment claims, it’s a decision made based on whatever evidence the investigator can find.
-Each party’s demeanor, their motives and past history, consistency/plausibility of their statements, etc.
Page 346
Define “Offboarding”.
The process of terminating an employee’s relationship with the organization.
Page 347
What are some procedures involved in the offboarding process?
-Design a plan to capture their knowledge/expertise before they leave
-Finalize pay/benefits due
-Disable their access to computer systems, emails, etc.
-Collect any company-owned property from them
-Arrange for them to get any personal belongings from their workspace
-Forward their work emails to a coworker
-Conduct an exit interview
-Provide counseling (outplacement services, continuing benefits, retirement)
-Review any non-compete agreements w/employee
-Update directories, phone calls, etc.
Page 347
Before an employee is terminated, what are the steps of the termination review process?
- Are there valid, job-related reasons for termination?
- If termination is due to a specific incident, has it been properly investigated/documented?
- Was the employee aware that his/her performance was unacceptable?
- Is the termination action consistent w/prior treatment of other employees?
- Review their work record, ensure they’ve received all rights they’re entitled to. Explore alternatives such as transfer, demotion, or counseling
- Ensure the employee is not a victim of retaliation for exercising their civil rights (e.g. making a sexual harassment claim).
Page 348
What are six recommended steps for termination interviews?
- Plan the interview carefully and be prepared for it.
- Announced the termination as soon as employee is comfortably seated.
- Describe the decision and the situation leading to it.
- Answer their questions and help them understand why they’re being terminated.
- Explain severance package, pay, benefits, etc.
- Have them sign paperwork, explain return of personal belongings, etc.
Page 349
How long should exit interviews last?
-No more than 15 minutes.
Page 350
When making layoffs, employers are mostly free to base their decisions on the performance/skills of employees, unless these decisions would violate what three things?
- Layoff provisions in a valid union contract
- Termination provisions of their employee handbook
- Any implied promises/verbal commitments that have been made to individual employees.
Page 350
What are acceptable performance-based criteria for laying off people?
-Performance/productivity as recorded in personnel files
-Attendance/tardiness records
-Cooperation w/co-workers and supervisors
-Demonstrated ability to perform crucial operations
-Education/experience
-Elimination of the position or the availability of funding for the position
Page 350
What should companies do before a layoff to prevent charges of age discrimination?
-They should examine the consequences of the planned RIF to determine if it creates any adverse impacts.
Page 350
What are the primary responsibilities of HR during layoffs?
-Prepare instructions for managers
-Prepare individual separation letters
-Prepare written questions and answer (FAQs) for those being laid off
-Prepare contact lists/phone numbers
-Prepare an exit checklist (to collect company property from employees)
Page 351
Define “Release of Claims”.
-A document employees sign in which they agree to waive any legal claims they may have against the employer in exchange for a severance package.
Page 351
Define “Worker Adjustment and Retraining Notification Act” (WARN).
-Requires companies to give 60-days advance notice of plant closings or layoffs that affect large numbers of workers.
Page 352
What types of organizations are covered by WARN?
-Employers with 100+ employees
-Private employers (non and for-profit)
Page 352
What types of employees are not counted in determining the total number of employees affected by a closing or layoff?
-Employees who have worked fewer than 6 month of the previous 12
-Employees who average less than 20 hours/week.
Page 352
Which employees are counted in determining a layoff?
-Those who have been employed at least 6 of the previous 12 months
-Those who work at least 20 hours/week.
Page 352
Per WARN, which employees must be given advance notice of layoffs?
-ALL potentially affected employees, regardless of pay type, full/part time, or length of service.
Page 353
What are the two types of layoff that trigger giving notices?
-Plant Closing
-Mass Layoff
Page 353
Define “Plant Closing”.
-The closing of a site (or 1 or more facilities w/in a site), which will result in an employment loss of 50 or more employees during any 30-day period.
Page 353
Define “Mass Layoff”.
-A mass layoff which does not result from a plant closing, but which will result in an employment loss at the employment site during any 30-day period for 500+ employees, or for 50-499 employees if they comprise at least 33% of the employer’s workforce.
Page 353
Define “Employment Loss”.
Any of the following:
-Employment termination, other than a discharge for cause, voluntary departure, or retirement
-A layoff exceeding 6 months
-A reduction in an employee’s hours of work of more than 50% in each month of any 6-month period.
Page 353
Employers are required to give at least 60 days’ notice of a layoff with what three exceptions?
- Faltering company (applies to plant closings, not mass layoffs)
- Unforeseeable business circumstances
- Natural disaster
Page 354
Per WARN, what must an employer do if it fails to provide appropriate notice of a plant closing or mass layoff?
-It must pay each affected employee back pay and benefits for the period of the violation, up to 60 days, minus any wages/payments paid to the employee during the violation period.
Page 354
What is the civil penalty for employers who fail to provide a layoff notice to the local government, and how may it be avoided?
-A civil penalty not to exceed $500 for each day of violation.
-It may be avoided if the employer satisfies the liability to each employee w/in 3 weeks of giving the order to close or layoff employees.
Page 354
Define “Risk Management”.
-The process of assessing and measuring risk, and developing strategies to protect the financial interests of a company, including safety, workers’ comp., unemployment insurance, security, loss prevention, emergency preparedness, health and wellness, data management, and privacy protection.
Page 361
Define “General Duty Clause”.
The general standard of OSHA that requires each employer to furnish a safe and healthy working environment for its employees.
Page 362
What two classes (types) of employees are especially prone to accidents on the job?
- New employees
- Those over the age of 65
Page 363
What is the formula that the BLS uses to calculate incidence rates?
Incidence rates = N / EH x 200,000
N= # of injuries/illnesses or lost workdays
EH= total employee hours worked by all employees during the calendar year
200,000= 100 employees x 50 working weeks worked by each employee x 40 hours per week
Page 364
Define “Recordable Cases”.
-Cases in which there was an occupational injury or illness, including death, but not including first-aid cases.
Page 364
What four incidence rates are calculated for each industry by the BLS?
- Total recordable cases
- Days away from work
- Days on job transfer/restricted work
- Other recordable cases
Page 364
What is “DART”?
-Incidence rates that are calculated for days away from work, restricted work activity, and job transfers.
Page 364
With regard to work-related injuries/illnesses, how are days away from work counted?
-They are measured in calendar days, and are capped at 180 days.
Page 365
Regarding work-related illnesses/injuries, define “other recordable cases”, and give some examples.
-Cases that involve illnesses/injuries that require medical treatment beyond first aid, but they do not require days away from work.
-Examples: fractured rib or toe, a punctured eardrum, or progressive diseases like cancer or silicosis.
Page 365
All employers, regardless of size and industry classification, must report accidents that result in the death of an employee to the nearest OSHA office within _ hours.
8 hours
Page 366
All work-related in-patient hospitalizations, amputations, and loss of an eye must be reported to OSHA within _ hours.
24 hours
Page 366
What types of occupational injuries/illnesses should being recorded?
If they result in or involve:
-Death
-Loss of consciousness
-Days away from work
-Restricted work activity/job transfer
-Medical treatment beyond first-aid
-Work-related cancer cases, chronic irreversible disease, fractured bones, or punctured eardrums.
-Needlestick injuries or cuts from sharp, contaminated objects
-Cases requiring an employee to be medically removed per an OSHA health standard.
-Positive tuberculosis test after exposure to a known case of active TB.
Page 367
What must be done to properly document recordable injuries and illnesses?
-OSHA Form 301 (or equivalent) must be completed for each recordable injury/illness w/in 7 calendar days.
-The same must be done for Form 300, and summarize the incident on Form 300A at the end of each year.
Page 367
How long must the Log and Summary of Work-Related Injuries/Illnesses be kept?
5 years
Page 367
Workplaces with 250+ employees must electronically submit what information to OSHA?
-Information from the previous year’s forms (300A, 300, and 301).
Page 367
What materials does OSHA require employers to post in a prominent place at work?
-Previous year’s Form 300A no later than February 1st, and it must remained posted until April 30th of that year; it must be available upon request to employees/former employees.
-Job Safety and Health Protection poster
-Copies of OSHA citations for violations of standards.
Page 368
True or false? Safety records should contain a complete record of all safety training programs and self-inspections.
-True
Page 368
What is the fine for alerting an employer of an OSHA inspection in advance?
$7,000 and/or six months in jail.
Page 368
Since OSHA cannot inspect every workplace annually, how does it prioritize which workplaces need to be inspected?
- Imminent danger situations
- Severe injuries and illnesses
- Worker complaints
- Referrals (from other federal, state, local agencies, etc.)
- Targeted inspections (of those w/ high incidence rates)
- Follow-up inspections
Page 369
If contacted by OSHA regarding low-priority hazards, how must an employer react?
-It must respond to OSHA in writing w/in 5 working days, identifying any problems found and describing any corrective actions taken or planned.
Page 369
How much time does an employer have to file an appeal (Notice of Contest) with OSHA after an inspection?
-It has 15 working days after receiving a citation to file a contest/appeal.
Page 369
OSHA will pay up to _% of state safety/health programs’ operating costs if it (OSHA) approves them.
50%
Page 370
Name the five levels of violations of OSHA standards under the Bipartisan Budget Act, and their maximum penalties as of 2019.
- De minimus violations - no penalty
- Other than serious violations - discretionary penalty of $13,260 max; may be reduced by up to 95%
- Serious violations - mandatory penalty of $13,260; may be reduced depending on employer’s history of previous violations.
- Willful violations - up to $132,598/violation and/or up to 6 months in prison if violation results in death. Fine up to $250k for an individual or $500k for a corporation may be imposed for a criminal conviction.
- Repeated violations - up to $132,598/violation.
Page 370
5.
What is the penalty for falsifying safety records?
-Up to $132,598 + six months in jail.
Page 371
What is the penalty for resisting, assaulting, intimidating, or interfering with a compliance officer?
$5k and up to 3 years in prison
Page 371
What is the max penalty for failing to post safety citations?
$13,260
Page 371
What is the max penalty for failing to correct safety violations?
$13,260 for each day the violation continues
Page 371
Define “Hazard Communication Standard” (HCS).
-OSHA standard that requires employers to notify employees when hazardous chemicals are present in the workplace and to train employees to work with them safely.
Page 371
Define “Safety Data Sheet” (SDS).
-Must be maintained by employers for each hazardous chemical that is used, processed, or stored.
Page 371
What procedures should managers follow to stimulate interest in safety and health programs?
- Post OSHA workplace “Job Safety and Health Protection” posters in prominent places
- Hold periodic health/safety meetings with employees
- Show/explain OSHA standards that apply to them
- Prepare a policy statement that clearly declares management’s concern about safety and health
- Include job safety and health topics in conversations w/ employees
- Review all inspection and accident reports; ensure hazards are eliminated
- Actively participate in labor-management safety committees.
Page 372
How long does an employer have to complete OSHA Forms 300 and 301 (or equivalent)once it becomes aware of a reportable occurrence
-W/in 7 calendar days
Page 374
Define “Drug-Free Workplace Act”.
-Requires government contractors to make a “good faith” effort to ensure a drug-free workplace.
Page 374
To whom does the Drug-free Workplace Act apply?
-To federal contractors with at least $100k in contracts.
Page 375
What are the requirements of the Drug-free Workplace Act?
-Developing written polices that prohibit controlled substances in the workplace, consequences for violating the policy, and requiring employees convicted of drug use in the workplace to notify the employer and its federal contracting agency as a condition of employment
-Providing copies of this policy to all employees
-Creating a drug-awareness program for employees
-Developing standards of enforcement for those who violate the rules
Page 375
Define “Workers’ Compensation”.
-Provides income continuation and reimbursement of accident expenses for employees who are injured on the job, regardless of fault.
Page 375
What clause do most state laws use to describe covered work-related injuries?
-Most state laws just say that they cover injuries “arising out of and in the course of” the employment.
Page 376
What are the two reasons for a waiting period in workers’ compensation?
- To make the employee bear some of the cost of their injuries
- Longer waiting periods reduce the likelihood of injured employees exaggerating trivial injuries
Page 376
What are two things that HR managers are responsible for when an employee returns to work early from a job-related injury?
- Ensuring the injured worker’s assigned duties are consistent with the advice of competent medical authorities
- Ensuring that the actions of the injured employee will not pose a threat to the safety/well-being of other employees.
Page 377
What does “EAP” stand for?
-Employee Assistance Program
Page 379
Define “Employee Assistance Program”.
-A program usually operated by the HR department w/ the help of social service agencies in the community that is to help employees w/ their personal problems like alcohol/drug abuse, financial debt, marital issues.
Page 379
What are six characteristics of an effective employee assistance program?
- Program staffed by qualified/professional counselors
- Accessible 24/7
- Advertised to all employees and their families
- Open to all employees/families
- Completely confidential
- Comfortable meeting place
Page 380
What should companies do if an employee refuses to admit that they have a drinking problem?
-Document the employee’s performance deficiencies
-Unsatisfactory performance is sufficient justification for terminating an employee, especially when poor performance has been documented, and the employee has been warned.
Page 381
True or false? Employee misconduct should be overlooked if it is caused by a problem for which he/she is receiving counseling from an EAP.
-False; misconduct should not be automatically excused because he/she agrees to accept help.
Page 382
Define “Employee Wellness Program”.
-A program that focuses on keeping employees healthy.
Page 382
Name some components of an employee wellness program.
-EAPs
-Disease management
-Exercise programs/activities
-Fitness courses
-Health screenings
-Nutrition education
-On-site medical program
-Smoking cessation
-Stress management programs
-Vaccination clinics
-Wellness challenges
Page 383
How can companies help employees stop smoking?
-Offer smoking-cessation programs
-Offer financial incentives to stop (or incur punishments for violating no-smoking rules).
Page 383
What are some programs that employers might offer to employees to improve their health?
-Health exams/screenings
-Employee education programs
-Company gyms
-Weight-loss and smoking-cessation programs
-Nutrition classes
-Stress management seminars/workshops
-Health info. website for employees
-Fitness bracelets for employees
Page 384
What are some incentives for employees to participate in wellness programs?
-Financial incentives
-Additional contributions to FSAs and HSAs or reduction in benefits costs
-Goal setting and reporting charts
-Free time to exercise during lunch.
-On-site gym
Page 384
Employers may offer rewards in wellness programs based upon what factor only?
-Participation
Page 385
What types of rewards may be awarded in wellness programs?
-Reimbursements for all or part of fitness center memberships
-Rewards for participating in a diagnostic testing program
-Waiving copay/deductible requirement for prenatal care or well-baby visits
-Reimbursements for smoking cessation program costs
-Rewards for those who attend monthly health education seminars.
Page 385
What are the five requirements of awarding financial rewards to employees who adopt healthy behaviors?
- Total rewards cannot exceed 30% of the total cost of coverage
- Program must be reasonably designed to promote health and prevent disease
- Eligible participants must have the opportunity to qualify for the reward at least once a year
- Reward must be available to all similarly situated individuals and allow alternative standards (or waiver of initial standard) for those who cannot obtain the initial standard due to a medical condition
- Plan must disclose the availability of a reasonable alternative standard (or a waiver of the initial standard) in all materials that describe that program.
Pages 385-386
What amendment protects public employees from unreasonable searches and seizures (unreasonable drug testing)?
-4th Amendment
Page 387
Under what conditions may government employees be required to submit a drug test?
-When “reasonable suspicion” exists.
Page 387
Define “Vulnerability Analysis”.
-An assessment of a company’s assets and analyzing potential threats to them.
Page 389
What six things may technical security systems include?
-Access control
-Surveillance
-Alarm systems
-Locks/locking mechanisms
-Central security stations
-Patrol services
Page 390
What are the four levels of risks and frequency of incidents?
- Low Frequency-Low Risk (LF-LR)
- Low Frequency-High Risk (LF-HR)
- High Frequency-Low Risk (HF-LR)
- High Frequency-High Risk (HF-HR)
Page 391
What are some precautions that employees (especially executives) can take to avoid being killed or targeted for kidnapping?
-Installing home and office security systems
-Take alternative routes to/from work
-Avoid patterns in their daily schedules
-Have security escorts during commutes
Page 391
Under what condition will the FBI investigate a company-related theft?
-The loss of the item stolen exceeds $50k.
Page 392
Define “Biometric Access Devices”.
-Security devices that allow access to people based on biological factors like fingerprints, iris or retinas, or their voice.
Page 393
Define “Signal Detection Theory”.
-The theory that explains the likelihood that a security officer will detect a problem based on two factors: the detectability of the problem relative to background noise, and the expectancy of an occurrence.
Page 393
The detectability of a target is influenced by the amount of __ associated with the target.
-Background noise
Page 393
Define “The Privacy Protection Act”.
-It was passed to protect the privacy of individuals employed in government agencies or by government contractors.
Page 394
What 3 general policy goals did the Privacy Protection Study Commission establish?
- To minimize intrusiveness (process of collecting the info.)
- To maximize fairness (the way the info is used)
- To create legitimate expectations of confidentiality (restrictions on distributing the info. to 3rd parties)
Page 394
What are 5 basic procedural rights for employees recommended by the Privacy Commission?
- Notice: of what type of info is kept by employers and how it’s used.
- Authorization: from 3rd party employees to have their info collected.
- Access: to the info that employers have about them.
- Correction: of any incorrect info employers may have about them
- Confidentiality: disclosure of info about employees to 3rd parties should require employees’ authorization
Page 395
Define “Employee Polygraph Protection Act”.
It prohibits the use of polygraph exams except:
-in cases involving an ongoing investigation of losses suffered by an employer
-for purposes of national security
Page 395
Polygraph tests may be used when interviewing applicants for what types of jobs?
Jobs:
-that involve the manufacture/distribution of controlled substances
-in certain types of security firms
Page 395
Under what 4 conditions may private employers test employees using a polygraph test?
- The test is part of an ongoing investigation of losses suffered by the employer
- The tested employee had access to the lost property in question
- The employer had reasonable suspicion of the employee’s involvement
- The employer provides a statement of the basis for the above conditions.
Page 396
Under what conditions may job applicants be lawfully tested using a polygraph test?
When they’re applying for jobs with:
-certain types of security firms
-manufacturer/distributors of controlled substances where the employees would have direct access to these controlled substances
Page 396
Define the “Uniting and Strengthening America PATRIOT Act”.
-Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
-Employers should include a disclaimer in their privacy policies that informs employees of the possibility that they may need to disclose confidential information if it is requested by the federal government.
Page 396
Define “Computer Security Audit”.
-An assessment of the security of a computer system, consisting of a vulnerability scan, reviewing system access controls, and evaluating physical access to the system.
Page 396
What types of security threats do inadequately protected systems face?
-Breaches by outside hackers
-Access by unauthorized employees
-Equipment failures
-Loss of info from power outages
-Theft of computers/software
-Viruses, worms, and spyware
Page 396
Define “Firewall”.
-A system of computer components between 2 networks that checks and controls the transfer of info between the networks.
Page 396
What are the 3 properties of a firewall?
- All internet traffic must pass through the company firewall.
- Only authorized traffic is allowed to pass through.
- The firewall itself should be immune to penetration.
Page 397
What are some industry guidelines regarding computer security?
-Have comprehensive written computer security policies/procedures
-Ensure adequate protection against fire, and perform fire drills
-Maintain HVAC systems and have alternate sources of electricity
-ITS facilities should not be located beneath flood levels, near railroads, or by busy highways
-Employees should be trained on computer security procedures (passwords, protection of info, assets, etc.)
-Identify sensitive systems, and issue one-time passwords to those users. Users of other systems can use reusable passwords that should be changed monthly
-Qualified analysts should review the system for service interruptions, data disclosure, and fraud risks
-Encrypt sensitive data and keep interpretation keys secure
-Internet access must be secure
-Back up all data and system files regularly to a separate location per a written schedule
-Check for viruses regularly
Page 397
During exit interviews, what type of document should departing employees sign with regard to company technology?
-They should sign a document that states that they have returned all computers, electronic storage devices, and that they haven’t made copies of such records.
Page 398
What should HR managers do with regard to electronic data retention?
-They should assist with the development of document retention policies that define where and how long documents will be stored, and how those documents will be destroyed at the end of the retention period.
Page 398
What should employers convey to employees with regard to personal email and instant messages stored on work computers?
-That those messages and emails may be considered relevant business documents in cases of employment litigation.
Page 398
Define “Patent”.
-A legal document obtained from the Office of Patents and Trademarks that protects the inventions and ideas of an inventor for a period of 20 years.
Page 398
Who can apply for a patent if a product’s inventor dies before applying for a patent?
-The inventor’s executor or administrator.
Page 398
True or false? An inventor may apply for a patent if an invention has been on sale or in public use for at least a year.
-False.
Page 399
Define “Trademark”.
-A word, phrase, symbol, or design that identifies and distinguishes the source of the goods or services of one party from those of others.
Page 399
What act established owners’ rights to trademarks?
-The Lanham Act of 1946.
Page 399
The law prohibits the registration of what kinds of trademarks?
Those that are: -Confusingly similar to existing marks -Generic or merely descriptive -Scandalous or immoral Page 399
Define “Copyright”.
-The exclusive right or privilege of authors or proprietors to print or otherwise multiply, distribute, and sell copies of their literary, artistic, or intellectual creations.
Page 399
True or false? Registration is not a requirement for copyright protection.
-True. Registering the copyright establishes a public record of the copyright claim, which is required before a copyright infringement suit may be filed in court.
Page 399
What are seven effective emergency preparedness plan provisions?
- Clarify the chain of command
- Employee accounting
- Communications center
- Employee training
- Medical assistance
- Emergency team
- Continuity and recovery plans
Pages 400-401
With regard to emergency preparedness, what are the 7 steps that the NFPA 1600 requires companies to implement?
- Develop an executive emergency response policy
- Appoint a program coordinator to develop/oversee a plan
- Create an advisory committee
- Conduct a risk assessment
- Develop a plan
- Continually evaluate/update the plan as risk factors change
- Communicate the plan to employees and train them how to respond.
Page 401
What are some suggestions for managing emergency employee communication?
-Develop an emergency communication plan
-Send out accurate info. ASAP
-Provide most relevant info to employees (updates to situation, etc.)
-Test the system periodically
-After an emergency situation, evaluate the system w/ employees.
Pages 401-402
Define “Duty of Care”.
-The responsibilities for injuries and illnesses to employees and their family members if/while abroad on business.
Page 402
What is “negligent failure to plan”?
The legal charge that US corporations may face if they:
-fail to provide emergency preparedness
-do not have a risk management plan
-are not prepared to respond to an incident
Page 402
Define “Workplace Violence”.
-Any act taken by an employee that undermines the purpose for which an enterprise exists, including graffiti scrawling, harassment, and practical jokes, as well as violent homicides.
Page 402
What four criteria should companies include in workplace violence policies?
- Zero tolerance
- Prevention
- Crisis management
- Recovery
Page 403
What five steps should managers take to reduce the likelihood that a disciplinary action will turn violent?
- Discipline the worker in private
- Hear the worker’s side of the story
- Don’t allow angry managers to discipline workers
- Don’t give supervisors authority to fire employees on the spot; even if employee is removed from the site (for fighting, etc.), investigate and make a termination decision later
- Don’t allow angry workers to leave alone
Page 403
What are some things that companies can do to reduce employee hostility during terminations?
-Explain why they’re being terminated; offer to explain information later when he/she feels less threatened
-Have two company reps present during the termination
-Tell the employee what he/she is expected to do next (get their things, etc.)
-If they’re suicidal/depressed, seek help from employee assistance prog.
Page 404
What are some personal problems/medical conditions that could lead to violence at work?
-Alcohol/drug abuse
-Paranoia
-Obsessive disorders
-Neurological disorders
-Intermittent explosive disorders
Page 405
Define “Paranoia”.
-An irrational fear held by people who think others are out to harm or destroy them.
Page 404
Define “Obsessive Disorders”.
-Disorders that occur when people allow their romantic fantasies to go unchecked and become irrational desires. This condition may become violent when the person is rejected.
Page 404
Define “Neurological Disorders”.
-Chemical imbalances that influence a person’s neurological functioning and may contribute to a loss of emotional control and violence.
Page 405
Define “Intermittent Explosive Disorders”.
-Explosive outbursts of angry emotion when a person is out of control and likely to injure someone or damage something.
Page 405
How long do active shooter situations typically last?
10 to 15 minutes
Page 405
What are some steps that HR managers can take to help reduce the likelihood of an active shooter and/or mitigate the seriousness of a shooting incident?
-Screen potential employees carefully (background checks)
-Create a system for reporting signs of potentially violent behavior
-Provide counseling services to employees
-Have an active shooter plan of action
-Establish access controls (badges, keys, etc.)
-Assemble crisis kits (evac. routes, emergency #s, employee lists, radios, flashlights, and first aid kits)
-Provide training to employees, including plans of action (run, hide, fight)
Page 405
What should HR managers do once an active shooter has been incapacitated?
-Account for all employees; determine injuries, etc.
-Notify families of affected individuals (injured or killed)
-Assess psychological state of individuals at the scene; refer to health care specialists if needed
-Identify/fill any critical personnel/operational gaps left as a result of the shooting.
-Create a report of the incident to document response activities, to identify successes/failures, and to provide analysis of the effectiveness of the existing emergency action plan and how to improve it.
Page 406
Define “Terrorism”.
-The use of force or violence against persons or property for purposes of intimidation, coercion, or ransom.
Page 406
What are some ways to prepare to deal with a terrorist incident?
-Learn about the different types of terrorist weapons
-Be alert/aware of the surrounding area
-Take precautions when traveling
-Learn where emergency exits are located
-Be aware of breakable objects that could cause harm during an explosion, etc.
Pages 406-407
What should people who live/work in a multi-level building do to prepare for a terrorist attack on a building?
-Review emergency evacuation procedures
-Know where fire exits/extinguishers are located, and how to work them
-Learn first aid
-Keep the following items in a designate place on each floor:
battery-operated radio w/extra batteries, several flashlights w/ extra
batteries, 1st aid kit and manual, hard hats, and fluorescent tape to close off dangerous areas.
Page 407
The decision to commit fraud is determined by the interaction of what three forces?
- Situational pressure (high personal debts, etc.)
- Opportunity to commit fraud (having access to the money)
- Personal integrity (an employee’s own personal code of ethical behavior)
Page 407
What are some recommendations for investigating internal fraud and thefts?
-Use an outside investigator if it involves senior management or computer security/network hacking
-Eliminate the possibility of external theft before concluding that it’s a case of employee theft
-List/rank all possible suspects per their likelihood of guilt
-Interview suspects, starting w/ the least likely
-Start by asking every suspect the same questions
-Have employees make a detailed description of their daily duties, and examine how their activities could have allowed them to commit the crime
-Interrogate those who are highly suspected of the crime to obtain a confession
-After interrogations and confessions are made contact law enforcement
Page 408
How should fraud/theft interrogations be conducted?
-Limit interrogations to 4 hours; allow the suspect to get water, use toilet, etc.; questioner should face suspect, about 5 feet away w/nothing between them. Witnesses should be present for interrogations among members of the opposite sex.
Page 408
How should fraud confessions be documented?
-They should be written and signed
-Should state that no promises or threats were used to obtain the confession, and that the suspect knowingly committed the crime
-Include details of the crime
-3rd Party witness should sign the document as well.
Page 409
Define “Inventory Shrinkage”.
-The amount of inventory that stores actually have relative to what they should have based upon the amount of merchandise they bought and what has been sold
-Used to measure a store’s losses - mostly through employee theft
Page 409
Name some ways to help reduce losses and improve the security of vulnerable firms.
-Screen all employees who will occupy positions of trust
-Monitor all business transactions
-Maintain comprehensive, accurate accounting records; have them audited occasionally
-Have a physical security system
-Eliminate “blind spots” in stores
-Provide adequate sales associates to assist/observe customers.
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