Final Exam

Question 1

Compensation (Local Level)

Answer 1

Conducts wage and salary surveys and communicates wage results to corp. group. Explains pay calcs to employees, understands and explains ‘red circled’ wages and understands overtime and docking rules/guidelines (+union).

Question 2

Compensation (Corporate level)

Answer 2

Conduct wage and salary surveys relative to recruiting regions, adjust wage scales to ensure external competitiveness, develops annual salary guidelines (% and Bonus levels). Recommend “pay band” changes as competitively needed. Understand COLA (Cost of Living Adjustment) and CPI-W (Consumer Price Index for Workers). Wages must be ‘Internally consistent’ and ‘Externally competitive.’

Question 3

EEO

Answer 3

Equal Employment Opportunity is a COMMITMENT to hire best qualified candidate for a role, based upon exp., education and skill level regardless of other factors.

Question 4

AA

Answer 4

Affirmative Action is an ACTION. Actively placing employment opportunities in front of potential applicants ‘where they are most likely to find them.’

Question 5

FLSA

Answer 5

FLSA
Fair Labor Standard Act (1938) Agencies/bis engaged in interstate commerce/providing goods and services. Guidelines for employment status, child labor, min. wage, overtime pay. Determines “Exempt” v “Non-Exempt.” IF minors can work and WHEN. Sets min wage that must be paid and when overtime has to be paid. City can have higher min wage than state and state than nation.

Question 6

FMLA

Answer 6

Family and Medical Leave Act (1993) An employee who has met minimum service requirements (12 months of employment with 1250 hours of service in last 12 mos.) can take 12 weeks of unpaid leave for a serious health condition, a family member with one, birth of child or adoption/foster children.

Question 7

Title VII of the ‘Civil Rights Act of 1964’

Answer 7

Prohibits discrimination on basis of race, color, religion, gender, pregnancy or national origin. Applies to employers w/15 or more employees. Done to level playing field so employers consider only job-related criteria. Must be considering when reviewing applications, interviewing candidates, testing job applicants, considering employees for promotion, transfers or other benefits. No laws protecting LGBT employees atm.

Question 8

USERRA

Answer 8

Uniformed Services Employment and Reemployment Rights Act (1994) Minimizes an individuals disadvantages when a person is absent from their position in order to serve in the uniformed services. Person maybe be gone (cumulatively) up to 5 years. Returning military personnel must be given equivalent or better job and pay rates compared to departure.

Question 9

What ARE and what ARE NOT the consequences of a Type I Error in the Least Risk Hiring Model?

Answer 9

ARE: The company misses an opportunity to get a good employee. ARE NOT: You did not relocate them, did not spend money training them, never needed to manage poor performance, never needed to terminate their employment or start over.

Question 10

What ARE and what ARE NOT the results of a Type II error (hiring an incapable applicant) in the Least Risk Hiring Model?

Answer 10

ARE: “Company consequences.” You relocated them and family and spent time training them (huge cost), had to manage poor performance, terminate their employment and restart the hiring process. ARE NOT: “Human Toll/Employee consequences.” They are frustrated, have suffered damage to self image/low morale, are embarrassed and now need to search for a more suitable job.

Question 11

Inelastic work

Answer 11

Does not “stretch.” Not able to be performed in a different time or place. Often done in conjunction with other people. May be done in fixed or rotating shifts. “Shift work” is an example. (Call centers, manufacturing sites, hospitals/restaurants).

Question 12

Elastic work

Answer 12

No rigid parameters, can be performed at nearly any location at various times and is not dependent on others input. (Salespeople, artists). Managerial work is “semi-elastic;” both elastic and inelastic work (HR, IT).

Question 13

Mediation (ADR)

Answer 13

Non-binding process where neutral party from outside organization hears the case and tries to help the people in conflict arrive at settlement. Rarely used by unions.

Question 14

Arbitartion (ADR)

Answer 14

Binding process where a professional arbitrator outside organization (usu. lawyer or judge) hears the case and resolves it by making a decision. Usually used by unions.

Question 15

Communities of Practice

Answer 15

A group of employees who work together, learn from each other, and develop a common understanding of how to get work accomplished.

Question 16

Diversity Training

Answer 16

Designed to develop skills needed to work with/within and as a part of a diverse workforce.

Question 17

Experiential Training

Answer 17

Participants learn concepts and apply them by simulating behaviors involved in the learning, and evaluating outcomes.

Question 18

Case Study

Answer 18

Group of co-workers analyze actual business situation, consider what outcomes were and propose alternative approaches that may result in better business outcomes.

Question 19

Team Building

Answer 19

Placing a work group together and providing learning activities for the purpose of achieving better work outcomes, solidifying common goals, and improving interactions between team members.

Question 20

What are the 5 employee benefits required by law?

Answer 20

Social Security, unemployment insurance, workers comp, family and medical leave, cobra.

Question 21

What does social security combine? Who shares costs? What is the total contribution? How do self-employed individuals contribute? What happens if you hit the FICA cap? How does the government ensure that SS is available for future generations?

Answer 21

Retirement program payments (SS) and Medicare (hospitalization, supplemental, advantage, prescription drugs, B & D have premiums). Employees and employers share through payroll tax, 6.2% from your paycheck under FICA and 6.2% from your company. 2.9% of earnings go to medicare. self-employed pay 12.4% by themselves. If you hit the cap you pocket the rest of the 6.2% (or 3.3%) as take home pay until Jan 1st, bonuses early in year to hit cap earlier. Gov’t must eliminate cap.

Question 22

How does unemployment insurance work and where do payments come from? What is an experience rating? What conditions must be met to be “unemployed?”

Answer 22

Payments made to unemployed workers as they are finding new jobs. Federal and state taxes on employers, not from paycheck. Company gets an experience rating based on how many employees lays off in a year and this determines tax imposed on employer, careful planning can keep your experience rating low. To be unemployed must demonstrate prior employment, be available for work, be seeking work, and not be discharged for cause, leave voluntarily or be out of work for union strike (labor dispute).

Question 23

What does cost of workers comp depend on?

Answer 23

Kind of occupations involved, state where company is located, employer’s experience rating. Might have unemployment insurance (employer) or self insured for workers comp. Stop Loss insurance is very costly, kicks in only at highest level of medical liability.

Question 24

What kind of defined plans are there?

Answer 24

Defined Benefits plan (DB) - Employer sets up pension fund managed by pension committee overseen by board of directors. Employer has to contribute enough money for retirement plan to cover all benefits for future eligible retirees. (ERISA 1974)
Defined Contribution plan (DC) - employer sets up individual account for each employee and specifies amount company may match. Profit-sharing and ESOP might work like this, 503B and 401K most common DC.

Question 25

What is ERISA? What did it create?

Answer 25

Federal law increased responsibility of pension plans to protect retirees. Established vesting and portability rights and created Pension Benefit Guarantee Corp.
PBGC is a fed agency that issues retirement benefits and guarantees to retirees that a basic benefit will be paid if employer experiences financial difficulties.

Question 26

What are vesting rights for DB and DC plans?

Answer 26

Guarantees exist for those in DB plans. Working a specified number of years, will receive pension at retirement age; regardless of whether they remain with employer or not, once they are vested a check will come to them at retirement for rest of lifetime.

Question 27

What are the different vesting rights for DC plans?

Answer 27

Step vest - A %/year of company contributions will become yours until 100% reached, then all yours.
Cliff Vest - At a point in the future all company’s match becomes yours but you get none leaving before.
Immediate Vest - From the day you start all company contributions are yours.

Question 28

What factors/traits will predict success in an overseas assignment? (In order)

Answer 28

1) Comfort level of employee’s spouse and family.
2) Outgoing and extroverted.
3) Cooperative and tolerant.
4) Dependable and achievement oriented.

Question 29

What is an expatriate?

Answer 29

Employees assigned to work in another country that is different from their “native country.”

Question 30

What is repatriation? What happens in the repatriation process?

Answer 30

Process of preparing expatriates to return home from foreign assignment.

1) Communication - Expatriate receives information and recognizes changes at home while abroad.
2) Validation - Giving expatriate recognition for overseas service when they return home.
3) Expectations - Managing the employee and family’s expectations upon their return to home country.

Question 31

What is a union? How are labor relations defined? What are the 3 levels of Labor Relations decisions?

Answer 31

Organizations formed for the purpose of representing their members’ interests in dealing with employers. “Body of Knowledge” that emphasizes skills mgmt and union leaders can use to minimize costly forms of conflict (like strikes) and find win-win solns to disagreements through discussions/negotiations. Labor Relation Strategy, Negotiating Contracts, Administering Contracts.

Question 32

What are labor union’s goals? What is their survival and security dependent on? What are three types of provisions that are critical to their security and viability?

Answer 32

Obtain pay and working conditions that satisfy members, give members voice in decisions that affect them, gain power in numbers, influence methods that determine members pay and promotions. Survival dependent on regular flow of members and member dues to support services provided. “Check-off” provisions, super-seniority, union membership security.

Question 33

What are “check-off” provisions?

Answer 33

To carry out functions union must receive dues from members. A contract provision under which employer automatically deducts union dues from employees’ paychecks on union’s behalf. Not required by law.

Question 34

What is super-seniority?

Answer 34

Employer recognizes union offers have “exceptional seniority rights.” Union members laid off based on seniority in company during layoff periods. Allows these officers to stay employed during layoff periods even if there are members with more seniority than them.

Question 35

What is membership security? What does it require? What is it like in RTW (Right to Work) states?

Answer 35

All members of a bargaining unit must be represented by the union whether they are union members or not. Since unions offer their services to everybody in bargaining unit, they want everybody to pay check off dues. In RTW states, some employees in the bargaining unit are not dues-paying members. If all people it must represent are not paying dues, may not be able to operate successfully.

Question 36

What does the Taft-Hartley Act do?

Answer 36

Congress establishes restrictions on union practices deemed unfair to employers and union members. Allows states to pass Right-to-Work laws, which make union shops (all employees must join union) illegal. President can break a strike to protect national interests.

Question 37

What do Right-to-Work laws do? What is the NLRB?

Answer 37

State laws make required union membership, maintenance of membership and agency shops illegal. National Laber Relations Board - Federal gov’t agency that enforces NLRA by conducting and certifying representation elections and investigating unfair labor practices. Act (NLRA), Agency (NLRB).

Question 38

Sustaining Work

Answer 38

Work that needs to be accomplished each day and is primary rationale for creating and maintaining business role.

Question 39

Improving Work

Answer 39

Work that tends to improve company efficiencies, and may be able to make current role more effective, accurate and efficient.

Question 40

Theory X Manager

Answer 40

Believes: workers dislike work and want to avoid it, must be forced or threatened with punishment to perform, prefer to be directed and avoid responsibility, motivators are fear and money.

Question 41

Theory Y Manager

Answer 41

Believes: People like work, part of life, workers seek goals they commit to, commitment to goals depends on perceived award and are motivated by a variety of awards, people can use creativity to solve problems and their intellectual capacity is only partially realized.

Question 42

What can companies not discuss with other companies? What can they do with other local similar companies?

Answer 42

Cannot discuss selling prices or specific wages they pay employees (cannot conspire to set prices or set/keep down wages). Can conduct salary surveys with similar organizations.

Question 43

What is a pay range? What is a pay rate that falls above pay range for the job? Below? What would you do to correct these?

Answer 43

Set of possible pay rates defined by max, min and midpoint for an employee with a particular job or job within a particular pay grade. Employee can be in band or outside of it. Red-circle is a rate that falls above range for job, give a bonus with no raise (recognition), green falls below, give them a raise to help catch up.

Question 44

What is compa-ratio?

Answer 44

Common way to compare actual pay to pay structure, make sure policies and practices match. Ratio of average pay to midpoint of pay range. Average pay of all employees in role equals midpoint of pay band, CR is 1.0. Average pay above midpoint, CR greater than 1.0. Average pay below midpoint, CR is less than 1.