Ch. 11, 13-16 Flashcards
Involuntary Turnover
Initiated by the EMPLOYER, employees want to stay
Voluntary turnover
Initiated by EMPLOYEES, organization wants to keep them
costs associated with involuntary turnover
recruiting,selecting, and training replacements, lost productivity, lawsuits, workplace violence
costs associated with voluntary turnover
recruiting,selecting, and training replacements,lost productivity, loss of talented employees
organizations must develop a standardized, _________ approach to discipline and discharge
systematic
policies should be based on principles of _______ &_______
justice, law
policies should allow for various ways to intervene
true
Decisions should not be solely left to the discretion of individual managers or supervisors
true
principles of justice
outcome of fairness, procedural justice, interactional justice
outcome fairness
a judgement that the consequences given to employees are just
Procedural justice
a judgement that fair methods were used to determine the consequences an employee receives
interactional justice
a judgement that the organization carried out its actions in a way that took the employees emotions into account
wrongful discharge
discharge may not violate an implied agreement
and may not violate public policy
discrimination
employers must make discipline decisions without regard to a persons age,sex, race, or other protected status.
carefully documented discipline can avoid such claims
employers need to make sure that the information they gather and use is _____
relevant
_________ issues also concern the employers wish to search or monitor employees
privacy
employers must also be prudent in who will see the information
true
organizations that plan large scale layoffs may be subject to the ___________
Workers Adjustment, Retraining and Notification Act
Employers by law are required to give notice before any closing or layoff
true
hot stove rule
principle that says discipline should be like a hot stove, giving clear warning and following up with consistent, objective and immediate consequences
progressive discipline
a formal discipline process in which the consequences become more serious if the employee repeats the offense
progressive discipline responses
- unofficial spoken warning
- official written warning
- 2nd written warning plus threat of temporary suspension
- temporary suspension plus written notice that this is the last chance to improve
- termination
rules of behavior should cover disciplinary problems such as :
tardiness, absenteeism, unsafe work practices, poor quantity/quality of work, drugs, sexual harrassment, theft of company property, cyberslacking
guidelines to respond to misconduct
- be clear about performance standards
- be consistent
- dont ignore the problem behavior
- investigate complaints asap
- record statements in writing with date and signatures
- focus on behaviors not personalities
- documentation should be clear and complete
- be honest
options for alternative dispute resolution
arbitration,mediation, open door policy, peer review
open-door policy
an organizations policy of making managers available to hear complaints
peer review
resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute
mediation
nonbinding process . a neutral party from outside the organization hears the case and tries to help the people in a conflict arrive to a settlement
arbitration
binding process. a professional arbitrator from outside the organization (judge/lawyer) hears the case and solves it by making a decision
Employee Assistance Program
a referral service that employees can use to seek professional treatment for emotional problems or substance abuse
Many EAP’s are included in health benefit plans
Outplacement counseling
a service in which professionals try to help dismissed employees manage the transition from one job to another
employee engagement
degree to which employees are fully involved in their work and the strength of their commitment to their job and company
employees provide a competitive advantage ,higher productivity, better customer service, and lower turnover
job withdrawal
a set of behaviors with which employees try to avoid work situation physically, mentally or emotionally.
happens when employee is dissatisfied with the job
job satisfaction
a pleasant feeling resulting from the perception that one’s job fulfills
3 components of job satisfaction
values, perceptions , ideas of what is important
effective incentive pay requirements
- perfomance measures are linked to the organizations goals
- employees believe they can meet performance standards
- organizations give s employees the resources they need to meet their goals
- employees value the rewards given
- rewards system is fair
piecework rate
a wage based on the amount workers produce
straight piece work plan
incentive pay in which the employer pays the same rate per piece, no matter how much the worker produces
differential piece rates
incentive pay in which the piece rate is higher when a greater amount is produced
standard hour plan
an incentive plan that pays workers extra for work done in less than a preset “standard time”
merit pay
a system of linking pay increases to ratings on a performance scale
performance bonuses
are not rolled into base pay
employee must re-earn them each performance period
sometimes only a one time thing
gainsharing
group incentive program that measures improvements in productivity and effectiveness and distributes a portion of each to employees
addresses challenge of identifying appropriate performance measures for complex jobs
frees employees to determine how to improve their own and their groups perfromance
conditions for effective gain sharing
management commitment, continuous improvement cooperation and interaction job security information sharing goal setting change and improvement working in groups
group bonuses
bonuses for group performance tend to be for smaller group works
reward teams for attaining a specific goal
team awards
similar to group bonuses but more likely to use a broad range of performance measures such as cost savings, meeting deadlines and successful completion of a project
profit sharing
incentive pay in which payments are a % of the organizations profits and do not become part of the employees base salary
may encourage employees to think like owners
not clear if it helps organizations perform better
considerations for setting up a profit sharing plan
get supervisors on board
make sure employees understand how plan works
identify behaviors and results that contribute to greater profits
make sure managers understand
link rewards
make rewards big enough
time profit sharing payments
stock options
rights to buy a certain number of shares of stock at a specified price
usually granted to executives
employee stock ownership plan (ESOP)
an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust
most common form of employee ownership
balanced scorecard
a combination of performance measures directed toward the company’s long and short time goals
used as the basis for awarding incentive pay
4 categories in balanced scorecard
financial
customer
internal
learning and growth
processes that makes incentives work
employee participation in decisions
communication
incentive pay for executives
short term and long term incentives
short term incentives
bonuses based on ROI’S,years profits and other measures based on organizations goals
actual payment may be delayed to gain tax advantages
long term incentive
stock options and stock purchase plans
role of employee benefits
contribute to attracting,retaining,and motivating employees
variety of employees helps employers tailor their compensation to kinds the employees need
help maintain employee security
impose significant costs
benefits as a percentage of total compensation have_____
gotten higher
role of employee benefits
benefit packages are more complex than pay structures
subject to gov’t regulation
legally required benefits
tax laws can make benefits favorable
benefits required by law
social security , unemployment insurance, workers compensation insurance, family and medical leave, health care
unemployment insurance
federally mandated program administered by states to minimize unemployment hardships
funding comes from federal and state taxes
to receive unemployment benefits workers must meet what 4 conditions?
had been employed
be available for employment
actively seeking work
not discharged for a cause
workers compensation
90% of workers are covered by state laws
unpaid family and medical leave
companies with 50+employees must give 12 weeks of unpaid leave after childbirth, ill family member or serious illness
paid time off
most flexible
employer pools personal days, sick days, and vacation days for employees to use as needed
medical insurance
70% of all full time employees receive benefits
retirement plan
optional
about half of employees have plans for retirement
unions
org. formed for the purpose of representing their members interest in dealing with employers
labor relations
field that emphasizes skills managers and union leaders can use to minimize costly forms of conflict and seek win-win solutions
three levels of labor relations decisions
- labor relations strategy
- negotiating contracts
- administering contracts
most unions belong to a national or international union t or f?
t
craft unions
members all have a particular skill or occupation
industrial unions
members are linked by their work in a particular industry
executive order 10988
established collective bargaining rights for federal employees
strikes are illegal for federal and state workers in most states
over 1/3 of gov’t employees are in unions t or f?
true
