Exam #4 Flashcards
Which of the following benefits are NOT mandated by federal or state legislation?
a) pension plan coverage
b) social security
c) unemployment insurance
d) workers’ compensation insurance
a)pension plan coverage
T/F
An employer representative has a right to be present when the OSHA inspector is interviewing employees unless the interview is private by request of the employee being interviewed.
True
Claude is director of benefits for a large canned vegetable processor. A long-time assembly line worker, Ed, and his wife have divorced. Under COBRA rules, who (besides Ed) must you notify of their opportunities for extended health benefits?
a) Ed’s wife
b) Ed’s wife and Ed’s dependent children
c) Ed’s wife, his dependent children, and Ed’s dependent elderly parents
d) Ed only, since this is a divorce situation and not a death situation.
b)Ed’s wife and Ed’s dependent children
T/F Profit sharing initiates a stronger reaction and more motivation from the work force than gain sharing, because in profit sharing the results are more difficult to manipulate.
False
An employer who has been warned of a safety violation, but does not correct the situation is vulnerable to a/an ____ violation.
a) serious
b) willful and repeated
c) de minimis
d) imminent danger
b)willful and repeated
T/F “Exempt” only refers to the minimum wage requirement.
False
_________identify the funds that go into retirement but don’t help you determine what you get when you retire.
a) PPOS plans
b) Defined contribution plans**
c) MSA plans
d) Defined benefit plans
b)Defined contribution plans
T/F Employees 14 and 15 years old may not work overtime.
True
_______________ allow individual employee to buy a certain amount of shares of stock in the company at a specified future point for a set price.
a) Stock purchasing plans
b) Stock options plans
c) Employee stock ownership plans
d) Company funded retirement funds
b)Stock options plans
T/F Workers compensation is mandatory in all states.
False
Which of the following is a major objective of the Fair Labor Standards Act?
a) to promote safe working conditions
b) to outlaw all child labor
c) to establish a minimum wage
d) to give labor unions the right to organize
c)to establish a minimum wage
T/F Social Security benefits are designed to replace 100 percent of an employee’s preretirement income.
False
FMLA is typically associated with how many weeks of unpaid leave?
a) 6
b) 12
c) 18
d) 20
b)12
What is a likely outcome when an organization’s compensation is viewed by employees and outsiders as lacking external equity?
a) difficulty recruiting qualified and high-demand employees
b) lower than average turnover
c) little effect on employee morale because internal equity is most important to employees
a)difficulty recruiting qualified and high-demand employees
What are green circle jobs?
a) Jobs that are paid at the midpoint for a particular class of jobs
b) Jobs that are paid above a particular class of jobs
c) Jobs that are paid below a particular class of jobs
d) Jobs that are not counted in the pay structure
c)Jobs that are paid below a particular class of jobs
What can you determine from the chart on the next slide that plots job evaluation points and current employee pay?
a) Employees are generally paid in a manner consistent with their worth to the organization.
b) Employees are generally paid in a manner INconsistent with their worth to the organization.
a)Employees are generally paid in a manner consistent with their worth to the organization.
Why is compensation important?
It poses a significant cost, it can influence recruitment and retention, and influence employee motivation
T/F Compensation can be directly tied to employee motivation.
True
Effort-> performance-> rewards=
Expectancy Theory
What is the expectancy relationship?
The area between effort and performance
What is instrumentality?
The area between performance and rewards
What is valence?
The reward itself
Inputs-> outcomes-> comparison other=
Equity Theory
FLSA=
Fair Labor Standards Act
What are some legal issues related to compensation?
Have to be paid minimum wage, age limits for child labor, overtime pay
What are some internal factors to consider when designing a compensation system?
Job analysis, job evaluation, Job structure, and pay policies
What are some internal factors to consider when designing a compensation system?
legal environnement, papy survey data, and some variables which are seniority, skills, etc
Objectively breaking down a job into “compensable factors” and applying points to each factor based on the job’s level of difficulty.
Point-Factor
Analyzing and ranking “compensable factors” of benchmark jobs in pay surveys and ranking all of the firm’s jobs against the benchmark.
Factor Comparison
Responsibility, skills, and complexity
Compensable Factors
When pay differences among employees with more experience becomes small or inverted
Pay Compression
Compensation that depends on some measure of individual performance or results in order to be awarded.
Incentives (Variable Pay)
Which type of variable pay is based on piece rate systems, bonuses, special programs, and sales compensation
Individual Incentive
Which type of variable pay is based on group results, gainsharing, cost reduction, and quality improvement
Group/Team Incentive
Which type of variable pay is based on profit sharing, employee stock plans, executive stock options, and deferred compensation
Organizational Incentive
What is a motivation of individual incentive/
That less productive employees work harder
What is a motivation of group/team incentive?
Better team work
Should be designed to motivate the executive to make decisions that will benefit the organization over both the short and the long term.
Executive Incentives
Why are executive Incentives controversial?
Fraud
T/F Shareholders can vote on executives compensation packages and “golden parachutes”
True
What are provisions under the Dodd-Frank Protection Act of 2010?
- All public firms must provide annual information on the relationship between executive compensation and the total shareholder return.
- Every public company must disclose the CEO’s total compensation and the total median compensation of all employees, and the ratio.
An indirect reward given to an employee or group of employees for organizational membership
Benefit
What are some statutory benefits?
Social security, medicare, workers comp, insurance, family and medical leave, etc
What are some voluntary benefits?
Paid time off, HMO, PPO, health/medical savings accounts, etc
What are some administration benefits?
Flexible benefit plans, modular plans, core plus plans, etc
What requires employers to pursue workplace safety?
OSH Act
What deals with the physical protection of people from injury or illness while on the job?
Workplace safety
The division within the Department of Labor that is charged with overseeing the OSH Act, and that was created to “ensure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance.”
The occupational Safety and Health Administration (OSHA)
What does OSHA do?
Sets and communicates federal safety and health standards to employers.
What are the 5 main things OSHA does?
- inspections
- responsible for hazard communication
- set guidelines for personal protection equipment
- set guidelines for how companies deal with blood born pathogens
- provide whistle blower protection
Violation has no direct or immediate safety or health danger; (so this does not result in citations or penalties).
De Minimis
Employer has not corrected a previous violation for which a citation was issued and the settlement date has passed
Failure to abate
Employer has been previously cited for the same type of violation within the previous five years.
Repeated
How does an investigation unfold?
An accident or repeated violations within 5 years
