Exam 3 Study Guide Flashcards
organizations formed for the purpose of representing their members’ interest in dealing with employers
Unions
field that emphasizes the skills managers and union leaders can use:
1) to minimize costly forms of conflict (such as strikes and locations)
2) seek win-win solutions to disagreements
Labor Relations
What are the pros of the union form them members perspective?
- Higher wages
- representation in disciplinary/ discharge cases
- greater job security
- better healthcare, pension, and paid time-off benefits
- system for grievance handling
What are the cons of the union from a member perspective?
- union dues
- fewer individual rewards based on performance
What are the pros of the union from the managers perspective?
- fewer individual requests/ complaints
- standard rules for reducing friction at the workplace
what are the cons of the union from the managers perspective?
-higher personnel costs reduce competitive position
-less flexible work rules
-greater time spent on grievances
-
what are the pros of the union from the society perspective?
- increased middle class
- leadership in passing major employment laws
- less competitive global position U.S. firms less competitive in global markets
what are the cons of the union from the society perspective?
- image of union leaders
- less relevant in todays global market place
means that if a majority of employees vote to hiring in a union to a company, the employees have a “______ ____ _______” there regardless if they join the union or not
Right to Work
How many states have right to work laws?
27
Gives employees the rights, without fear of persecution to:
- self-organization
- form, join, or assist labor organizations
- bargain collectively through representatives of their own choosing
- engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. (strikes included)
- and refrain from such activities unless that right may be affected by an agreement that requires membership in a labor organization as a condition of employment
The National Labor Relations Act (NLRA) of 1935 (The Wagner Act)
amendment to 1935 NLRA that rebalanced employer and employee rights by prohibiting specific unfair practices by unions including:
-wildcat strikes and secondary boycotts
-union shops
-coercive tactics
also permits the gov’t to receive an 80-day injunction against strikes that threaten the national economy
Taft-Hartley Act of 1947
What are three reasons that workers may go on strike
unfair labor practices
economic reasons
sympathy strikes
- reason workers may go on strike
- strikes intended to oppose unfair or unlawful practices by an employer, such as violations of minimum wage or overtime compensation laws, unsafe working conditions, or interference with labor organizing efforts
Unfair Labor Practices
- reason workers may go on strike
- strikes intended to gain concessions from the employer, such as higher wages, improved working conditions, or additional employment benefits
Economic Reasons
- reason workers may go on strike
- refusal to cross a picket line in sympathy for or solidarity with striking workers
Sympathy Strikes
sudden, unexpected strike in which there is no warning by the striking workers. The striking workers did not follow proper procedure for going on strike and no official support by the union leadership
Wildcat Strike
picketing the premises of a customer or supplier who, though not a direct party to a labor dispute, is buying from or selling to a party involved in a strike action
Secondary Picketing
5 U.S.C. Section 731 1 federal law prohibits U.S. government employees from:
(Does not prevent them from unionizing and collective bargaining)
- striking
- publicly claiming they have the right to strike or belonging to a union that claims the right to strike.
Firms that employ (full time) more than 100 people must notify employees of layoff at least 60 days ahead of time when laying off more than 50 people. All workers included in this notice including hourly & salary workers and managers
The Worker Adjustment and Retraining Notification act (Warn) of 1988
Union organizing: No TIPS:
- no threats
- no interrogations
- no promises
- no spying
- Union organizing No (T)ips
- managers can’t threaten that the firm will shut down a facility that votes to unionize
No Threats
- Union organizing No T(I)PS
- managers can’t ask an employee about union organizing activities
No Interrogation
- union organizing No TI(P)S
- managers can’t promise employees pay or benefits rewards if they vote against union authorization
No Promises
- union organizing No TIP(S)
- managers can’t plant spies in union organizing meetings or other activities
No Spying
Five steps to Unionization
- Initial Organizing Activities
- Signing Authorization Cards
- Determining the Bargaining unit
- Election
- Certification
in the signing authorization step of unionization , what is the percentage of employees who don’t sign that ends the process?
30%
in the election step of unionization if fewer than 50% vote for the union….
The process ends
In the certification step of unionization if it is decertified it is voted out and ….
unionization stops
- members are encouraged by their union to seek employment at a nonunion company
- once hired, they promote unionization
- the union may supplement their regular pay to provide equity with a “union wage”
Salting
- prescreen as many applicants as possible to ensure you are hiring the most qualified person for any opening you have available
- use “consensus” interviewing
- an application should say “list entire employment history, starting with the present employer
- ensure that applications shoe entire work history with no gaps in employment
- check references thoroughly
Countersalting Steps
what are the limitations of decertifying elections:
- not within a year of a previous attempt at decertification
- the company cannot initiate a decertification petition or encourage a decertification petition
- if requested by employees, management can provide info regarding decertification, but cannot threaten employees or promise benefits
management stops work and physically prevents workers from entering the workplace
Lookouts
Workers who strike for _______ ________ may be _________ replaced by the employer, but the replacement workers cannot receive better terms than those offered to the strikers
Economic reasons; permanently
The NLRA prohibits the permanent replacement of workers who strike to….
protest unfair labor practices
includes anything that an employee may value and desire and that the employer is willing and able to offer in exchange.
The Compensation System
all rewards that can be classified as monetary and in-kind payments.
Direct Compensation Components
all rewards other than monetary and in-kind payment (company cafeterias and gyms)
Non Compensation Components/ indirect
- type of compensation
- consists of base pay, merit pay, incentive pay, and deferred pay
direct compensation
- form of direct compensation
- 2 types: salary and wage
- wages are paid on an hourly basis; salary is based on a longer time period
Base pay
- form of direct compensation
- types:
- bonus
- commission
- piece rate
- profit sharing
- stock option
- shift differential - aka variable pay; is “pay for performance” and commonly includes piece work in production and commission sales.
Incentive Pay
- form of direct compensation
- types:
- savings plan
- stock purchase
- annuity
deferred pay
- type of compensation
- consists of protection programs, pay for time not worked, services an prerequisites
Indirect compensation
- form of indirect compensation
- examples: medical insurance, life insurance, disability income, pension, and social security
Protection Programs
- form of indirect compensation
- examples: vacations, holidays, sick leave, and jury duty
Pay for time not worked
- form of indirect compensation
- ex: recreational facilities, car, financial planning, low-cost or free meals.
Services and Prerequisites
includes overtime pay, shift, differential, premium pay for working weekends and holidays
wage and salary add ons
indirect compensation that provides something of value to the employee
Benefits
What did the Fair Labor Standards Act of 1938 “FLSA”
Minimum wages, overtime issues, child labor rules
- Federally lowest wage for non-exempt workers is $7.25 for hourly work
- yearly: $15,080.00
- DC= $14.00/ hr
minimum wage
-A federally mandated, higher-than-minimum wage, required for non-exempt employees if they work more than 40 hours a week
FLSA set as “time and a half” or 150% of employee’s normal wage
Overtime
Pay levels for employees inside the company
internal equity
pay levels those employees could command in the company’s recruiting markets
external equity
occurs when individual with substantially different levels of experience and/or performance abilities are being paid wages or salaries that are relatively equal.
-occurs when the external market changes so rapidly the new employees are actually paid more than experienced ones
Pay Compression (Inversion )
when jobs are distinctively different but entail similar levels of ability, responsibility, skills, and working conditions, they are equal value and should have the same pay scale.
-is broader than “equal value for equal work” because the work need only be similar, not the same.
Comparable Worth
-14 and 15 year olds may work outside school hours no more than:
-3 hrs on school day
-18 hours in school week
-eight hours on a non school day
- 40 hours in non -school week
permissible work hours are also restricted
-16 & 17 year olds cannot be employed in hazardous jobs, but their work hours are unrestricted
FLSA child labor laws
set and rank jobs by experience, education, and responsibility within the organization. the structure is determined based on multiple factors and assigned pay grades should correlate with the salary range for the position with a minimum and maximum
Pay Bands
Refers to the minimum, maximum and midpoint of salaries for jobs within the same Pay band.
Rate Range
involves researching and establishing rate ranges for each grade. employers should regularly review wage and salary data to compare salaries in the market to their organizations
Job Pricing
not just the middle of the range. it refers to the actual rate of pay a qualified employee with all the right credentials and experience performing at a satisfactory level should be paid between the minimum and maximum.
The Midpoint
A review of the cost of a program and comparison of program costs with the rate of the programs usage by the members of the company
Utilization Analysis
what are the considerations in providing benefit programs?
Amounts, What to offer, Flexibility
Employees should understand the true ______ and value of the _______ they receive from the firm
cos; benefits
a system that defines what each individual and job role is paid based upon their value to the business and effectiveness in their role
-Creates a hierarchy of jobs and their rates of pay within the organization; made up of job structure and pay levels
Pay Structure
the stacking up of the jobs in the organization from the lowest to the highest levels.
Job structure
provide minimum to maximum pay for a group or subset of the jobs in the organization
Pay levels
After revising a pay structure, if some employees are overpaid, what should you do?
freeze their base salary until it must be adjusted due to market change
After revising pay structure, if some employees are being underpaid, what should be done?
plan to raise their salary in the next performance review.
requires employers to offer temporarily maintain health insurance on individuals who leave their employment voluntary or involuntary 9except in gross miss conduct)
18 months for termination
29 months for disability
36 months due to divorce, death, or loss of dependent status
Consolidated Omnibus Budget reconciliation act of the 1985 (COBA)
- guarantees healthcare is available to any legal U.S. resident who cannot otherwise obtain good healthcare
- gives employers with over 50 employees the choice between providing insurance that meets the standards of the act or paying the penalty
- this penalty helps to offset the cost of employees who are not covered through their employer to purchase insurance through the public health insurance exchange instead of using emergency services
- employers with less than 23 employees may qualify for tax credits, tax breaks and other assistance for insuring employees
Patient Protection & Affordable Care Act “Obamacare”
-are not mandatory, but if provided, the firm must comply with the ERISA provisions.
The Employment Retirement income security act of 1974 (ERISA)
a savings plan is a savings investment account for individual employees of corporations
401K retirement plan
similar to 401K but is used for nonprofits
403b
many employers that offer a 401k or 403b provide a matching contribution up to a set max
matching contributions
system supported by equal contributions from employer and employee that provides:
- retirement income
- disability income
- survivor benefits
- medicare benefits
Social security
provides medical treatment and temporary payments to employees who are injured on the job or become ill because of their job.
Workers Compensation
- federal program managed by each state-provides payment for a fixed period to workers who lost their job
- despite federal guidelines, each individual state determines the eligibility, amount, and duration of benefits
- keeping the # of claims by former employees to a minimum can produce significant payroll tax savings
Unemployment Insurance
twelve work weeks of unpaid leave in any 12 month period for eligible employees when they or immediate family members are faced with medical issues.
Family & Medical Leave Act of 1993 (FMLA)
typically cover a set percentage of fees for medical services
Traditional health care plans
is a managed care program that provides both health maintenance services and medical care
Health Maintenance Organization (HMO)
is a hybrid between traditional fee-for-service plans and HMOs.
Preferred Provider Organization (PPO)
allow employers and employees to fund a medical savings account from which employees can pay medical expenses with pretax dollars
Health and Medical Savings Accounts (HSA?MSA)
employees choose from multiple options
Flexible Benefit (Cafeteria) Plans
employees choose benefits from modules, each with a different mix of insurance, employee services and retirement options; these plans are the easiest for HR to manage
Modular Plans
core benefits are available to employees choose from remaining benefits
Core Plus Plans
give 5 examples of pay for time not worked
- holidays
- maternity, paternity, family leave
- blood donation
- holidays falling on non-work days
- military duty
- grievance and contract negotiations
- wellness leave
- sick leave
- marriage leave
- funeral leave
- lunch,rest, & break periods
- jury duty
cater to employees’ physical welfare through education and training programs such as health education, training and fitness, weight and lifestyle management, and health risk assessment services
Employee Wellness Programs (EWP)
counseling and other services provided to employees that help them resolve personal issues that may affect their work
Employer Assistance Programs (EAP)
the eligibility for the Employee Retirement Income Security Act of 1974 (ERSA) is available to all employees…
Over 21 who have worked in the firm for 1 year.
The vesting of the Employee Retirement Income Security Act of 1974 (ERSA) is the ________ amount of time a firm can retain contributions to the employees account
Maximum
The portability of the Employee Retirement Income Security Act of 1974 (ERSA) allows ________ to move their funds from the employer to another _________ fund.
Employees; qualified
Employee insurance coverage consists of:
- life insurance
- disability insurance
- health insurance
- death and dismemberment
- etc.
benefit coverage, deductibles, monthly premiums, copayments, and choice of heath-care provider are all….
Health care issues to be considered
Employee Assistance Programs consist of
in-person assessments referrals to community resources and providers critical incident stress management health and wellness presentations legal/financial services website resources
What are major differences between domestic and international HRM
Business activities increased complexity increased involvements in employees personal life complex employee mix increased risks
-high failure rates of expatriation and repatriation
-deployment- getting the right mix of skills in the organization regardless of geographical locations
-managing critical knowledge and speed of information flow
-talent identification and development- identify capable people who are able to function effectively
Are all the main ____________ _____ IRHM
Main challenges
What are the challenges of global management?
different:
- labor laws
- political climate
- stage in technological advancement
- values and attitudes
- roles of religion
- educational level attainment
What are the different approaches organizations can take to how they manage their employees
Ethnocentric
polycentric
geocentric
- approach is parent company country oriented (parent company nationals (PCNS))
- home country policies and practices are likely to be used
- managers tend to be from home country
- org tries to replicate corporate culture
- economies of scale may be gained as subsidiaries follow the same
- consistency is gained across subsidiaries
Ethnocentric Approach
What are the advantages of parent country managers?
familiarity with parents goals, policies, objectives
technical and managerial competence
effective liaison and communicator with parent staff
What are the disadvantages of parent company managers?
difficulties adapting to foreign language and cultures
excessive costs in selecting and developing managers
family adjustment problems
- approach where host country nationals will usually fill management positions
- managers usually report to the parent company but have the autonomy to make decisions
- not a single corporation culture
- limited controls/ interventions from parent company
- fewer language and culture barriers
Polycentric Approach/ Host country
- Approach where it looks for the best person for a job, regardless of nationality
- managers usually have previous international management experience
- communications is a more two way and interactive process
- facilitates the development of an international team of employees
- aims to develop the best people
Geocentric Approach/ 3rd country nationals
What is part of assignment preparation?
Training
relocation assistance
company housing and school financial benefits
social opportunities with other expatriates in work country
- short term period
- lectures
- videos on local culture
- briefings on company operations
Low Rigor Training
- lasts over a month
- experimental learning
- extensive language training
- often includes interactions with host country nationals
High Rigor Training
Parent company pay rate? host country pay rate? exchange rates? taxation issues. Fairness to colleagues at work site
Paying the EXPAT
difficult for many orgs
“reverse culture shock”
expatriates must relearn own national and organizational culture
includes whole family
Repatriation Problem
What have been the HR Challenges in 2020?
- Covid-19 shutdown
- building a diverse workforce
- creating a plan for workplace violence
- legalized marijuana
- paid time off benefits
- staying compliant with local and state laws
