Final exam slides

Question 1

What is involuntary turnover?

Answer 1

turnover initiated by the organization (often among people who would prefer to stay)

Question 2

What is voluntary turnover?

Answer 2

turnover initiated by employees (often who the company would like to keep)

Question 3

What are the four steps of progressive discipline?

Answer 3

provide a verbal warning
provide a written reprimand
Suspension
Termination

Question 4

describe what happens when you provide a verbal warning

Answer 4

explain to the employee what you have seen and why it concerns you
listen to the employees reasons for the situation
document that a verbal warning was given

Question 5

what happens when you provide a written reprimand?

Answer 5

write up the warning and give to the employee
set follow up dates
document everything

Question 6

What happens when you provide a suspension?

Answer 6

a final warning

some employers require the employee to take a day off

Question 7

what happens when you terminate someone?

Answer 7

plan the interview
get to the point and describe the situation
review the severance package
identify the next steps for the candidate
remove access to the building

Question 8

What are the three exceptions to Termination at Will?

Answer 8

1. cannot fire people because they are a member of a protected class
2. cannot fire people if there is a “just clause” in the labor agreement or if this is communicated to the employee
3. Cannot fire people if they are adhering to public policy (refusing to break the law, serving on a jury)

Question 9

What is the Termination at Will agreement?

Answer 9

Under US law, in the absence of a contract, either the employer or employee can terminate employment at anytime

Question 10

What are some examples of breaching an implied contract? (5)

Answer 10

• length of past employment
• lack of warnings
• raises, bonuses, and promotions
• received assurances that employment would continue if they did a good job
• implied covenant of good faith and fair dealing

Question 11

What are some things you can do to avoid a wrongful discharge suit?

Answer 11

• have policies in place that stress fairness for all employees
• have applicants sign the employment application and include a statement that the employer can terminate at any time
• avoid statements from your handbook that imply terminations will only occur if there is just cause
• complete a performance appraisal once a year. provide warnings in writing and the opportunity for the employee to improve

Question 12

T or F: voluntary turnover can cost a company anywhere from 90% to 200% of a job positions salary.

Answer 12

T

Question 13

What are the two main causes of voluntary turnover?

Answer 13

desire to leave and ease of leaving

Question 14

what are the two major components of compensation? Examples?

Answer 14

Direct financial payments
- wage, salaries, bonuses, commissions
Indirect financial payments
- insurance, vacation time

Question 15

What are some of the things that the Fair Labor Standards Act has set standards for in terms of pay? (6)

Answer 15

• federal minimum wage
• maximum hours worked
• overtime pay
• equal pay
• record keeping standards
• child labor provisions

Question 16

Steps to determine if an employee is exempt from aspects of FLSA

Answer 16

• does the employee make 455 a week (23660 a year)
• does the responsibilities of the employee include things like management, administrative tasks, and designs of computers

if true, preform a job analysis to determine nature of job

Question 17

what are the three approaches to setting a pay rate?

Answer 17

market based approach, job evaluation approach, and market-competitive pay plan

Question 18

What are the differences between market based, job evaluation, and market-competitive approach to setting the pay rate

Answer 18

• market looks at relative labor markets to see what they are paying for the same job
• job evaluation is a formal and systematic approach where the more KSAO’s are viewed as more valuable
• Market-competitive is combination of the two, where they are competitive externally and viewed as fair internally

Question 19

When creating a market competitive plan, why do you choose benchmark jobs?

Answer 19

impractical to evaluate every job, this determines which jobs to rate

Question 20

When creating a market competitive plan, why do you select compensable factors?

Answer 20

to determine the dimensions in which the job will be rated, to ensure reliable and valid ratings

Question 21

what are the two ways to conduct a market analysis using a salary survey

Answer 21

informal- call the company to see if that’s their actual starting salary
formal- hire a consultant, use data from national compensation survey, or form an online website.

Question 22

What is piecework pay?

Answer 22

earnings are tied directly to the amount of items produced or tasks completed (alex recieves 5$ for every bushel of apples picked)

Question 23

What is Merit raise pay?

Answer 23

base salary increase awarded to an employee based on performance.

Question 24

What is a profit sharing plan?

Answer 24

all or most employees receive a portion of the companies annual profits

Question 25

what is a scanlon organization wide incentive plan?

Answer 25

form of gain sharing that encourages cooperation, employee involvement, and sharing benefits

Question 26

for unemployment insurance: 
what is it? 
where do the benefits come from? 
do companies pay more or less with a high turnover rate? 
are all employees eligible?

Answer 26

• provides benefits if a person is unable to work through some fault other than their own
• comes from a tax imposed on employers based on total payroll
• companies pay more if turnover rate is higher
• poor performers should not be eligible given a company documents warnings properly

Question 27

what are the two types of insurance benefits?

Answer 27

• monetary benefits paid to employees or their dependents

- medical benefits (covering surgery, or physical therapy)

Question 28

What is the COBRA act?

Answer 28

most private employers need to offer insuracnce to a separated employee for a specified window of time

Question 29

What is the difference between a contributory and non-contributory pension plan?

Answer 29

in contributory the employer and employee both contribute, and that’s not the case in non-contributory

Question 30

What did the Norris-LaGuardia act of 1932 do?

Answer 30

guaranteed the right for employees to collectively bargain free from interference, restraint, and coercion

Question 31

what did the Wagner Act accomplish?

Answer 31

banned unfair labor practices, required secret-ballot elections, and created the national labor relations board

Question 32

what did the Taft-Hartley act accomplish?

Answer 32

limits the rights of unions in organizations, clarifies the rights of employees and employers, and allows the president to temporarily halt strikes

Question 33

when dealing with unions, what are the two words to remember and and what do they stand for when giving advice to managers about how to handle the situation?

Answer 33

Do not TIPS
- threaten, interogate, promise, or spy on employees

offer FORE
- facts, opinions, rules, and experiences

Question 34

what are some examples of mandatory and voluntary bargaining items?

Answer 34

mandatory
- pay rate, holidays, severance

voluntary
- cafeteria prices, scope of the bargaining unit)

Question 35

what is enterprise risk management?

Answer 35

the process of assessing exposures to loss within an operation and determining how best to eliminate, manage, or otherwise reduce the risk of an adverse event from impacting the business.

Question 36

What are the differences between ethnocentric, polycentric and global staffing?

Answer 36

ethno- mostly hires a non-citizen living outside their normal country from the global headquarters
poly - staffs positions with local employees
global - hire the best regardless of country