chapter 11 and 12 Flashcards
Distinguish between Involuntary and Voluntary Turnover, and then describe their effects on an organization.
Involuntary Turnover: Occurs when the organization requires employees to leave, often when they would prefer to stay.
Voluntary Turnover: Occurs when employees initiate the turnover, often when the company would prefer to keep them.
-Both are costly because of the need to recruit, hire, and train replacements. Involuntary turnover can also result in lawsuits and even violence.
Discuss how employees determine whether the organization treats them fairly.
-Employees draw conclusions based on the outcomes of decisions, procedures applied, and the way they are treated during this process.
IPO
- Interactional Justice: Judgement that the organization carried out its actions in a way that took the employee’s feelings into account. Listened to employee and treated them with dignity.
- Procedural Justice: Says the procedures should be consistent, unbiased, based on correct information, and correctable. Should take in the viewpoints of everyone involved.
- Outcome Fairness: Says the consequences should be consistent, expected, and in proportion of the behavior.
Identify legal requirements for employee discipline.
WED
- When termination is part of a plant closing, employees should receive the legally required notice.
- Employee discipline should not result in wrongful discharge.
- Discipline should be administered without discrimination and should respect individual’s privacy.
Summarize ways in which organizations can discipline employees fairly.
HOPEA
- Hot Stove Rule: meaning discipline should give warning and have consequences that are consistent, objective, and immediate.
- Outplacement Counseling: Helps employees who are terminated from the organization.
- Progressive Discipline: Rules are established, communicated, and increasingly severe following each violation.
- Employee Assistance Program: Helps employees who are having problems resulting from substance abuse.
- Alternative Dispute Resolution: Open door policy, peer review, mediation, and arbitration.
Explain how job dissatisfaction affects employee behavior.
Things that cause dissatisfaction: Supervisors and co-workers, pay levels, or employee’s own disposition.
PJP
- Physical Withdrawals: Range from tardiness and absenteeism to job transfer or leaving the organization altogether.
- Job withdrawal: behavior change, physical or psychological withdrawals.
- Psychological Withdrawals: Involves displaying low levels of job involvement and organizational commitment. Likely when employee cannot find another job.
Describe how organizations contribute to employees job satisfaction and retain key employees.
TERM
- Try to identify employees who appear to be satisfied.
- Establish satisfactory pay levels and communicate with employees.
- Role analysis
- Make their jobs more complex and meaningful.
Summarize legal requirements for pay policies.
-Employers must provide equal pay for equal work, regardless of age, sex, race or other protected status.
Fair Labor Standards Act:
FERC
- Federal Contractor regulations.
- Employer must pay at least minimum wage established by law.
- Requires organizations to pay for overtime at 1.5 times their regular rate.
- Child Labor regulations.
Describe how employees evaluate the fairness of a pay structure.
- Equity theory: Employees think of their pay relative to their inputs, such as training, experience, and effort.
- To decide whether their pay is equitable, they compare their outcome/input with other people’s outcome/input ratio who are doing the same job.
- If employees think their outcome/input ratio is less another’s, they conclude their pay is unfair.
Discuss the importance of benefits as a part of employee compensation.
Compensation includes: wages, salaries, incentive pay, and benefits.
- Help employers attract, retain, and motivate employees.
- Employees expect at least a minimum level of benefits, and providing more than the minimum makes organization more attractive.
- Employers provide benefits because employees expect them and many benefits are required by law.
Summarize the types of employee benefits required by law.
- Employers must contribute to old age, disability, health insurance, and social security and payroll taxes.
- Patient Protection and Affordable Care Act: says employees must provide insurance if they have more than 50 employees.
- Family and Medical Leave Act: Granted unpaid leave for employees with newborns or adoptions.
- Employers must pay federal and state taxes for unemployment taxes based on employers experience rating or percentage of laid of employees in the past.
- Employers must purchase worker’s compensation insurance.
Describe the most common forms of paid leave.
VHS
Major categories are vacations, holidays, and sick leave.
- Paid vacation typically 10 days in US.
- Sick leave programs say employers must provide paid time off for a limited period of time for sicknesses.
- There is also personal days and floating holidays.
Identify the kinds of insurance benefits offered by employers.
- Medical Insurance: Cover hospital visits, surgical expenses, and doctor visits.
- Consolidated Omnibus Budget Reconciliation Act of 1985: Employees must be able to extend health coverage for up to 3 years after leaving organization.
- Life insurance: Group term life. Usual benefits are two times the employee’s yearly pay.
- Short/Long Term disability: Disability insurance paid as a percentage of employee’s salaries.
Define the types of retirement plans offered by employers.
2 types of retirement plans: Contributory (funded by employer)and Non-Contributory (funded by employee).
- Defined Benefit Plans: Guarantee a specific level of retirement income based on employees experience. Benefits protected by Pension Benefit Guarantee Corporation.
- Defined-Contribution Plans: Employer sets up individual accounts (401ks) and guarantees the size of investment into account.
- Cash Balanced Plan: Combines advantages of defined benefit plans and defined contribution plans. Employer sets up individual accounts and contributes a percentage of each employee’s salary. Account then earns interest.
Describe how organizations use other benefits to match employees’ wants and needs.
- Employers have responded to work-family role conflicts by offering family friends benefits (paid family leave, child care services, college savings plans, etc)
- Some benefits include cafeterias, on-site health clinics, and reimbursement for moving expenses.
- Discounts on products from manufacturing partners.
- Tuition Reimbursement
- Recreation Centers
Explain how to choose the contents of an employee benefits package.
- Look at organizational objectives and design programs around these.
- Consider employees’ expectations and values.
- Weigh the cost of benefits, which will be significant.
- Consider Cafeteria style plans that give employees control over the benefits they receive.
