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PHR Certification > Module 4.1A: Philosophy & Strategy > Flashcards

Module 4.1A: Philosophy & Strategy Flashcards

1
Q

What is organizational justice?

A

Employees’ perception of workplace fairness

It’s important to HR because it can affect employee retention, behavior, and performance.

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2
Q

What are the 3 areas of organizational justice?

A
  1. Distributive
  2. Procedural
  3. Interactional
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3
Q

What is distributive justice?

A

often relates to pay and benefits and how they are awarded

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4
Q

What is procedural justice?

A

refers to the processes that lead to these allocations.

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5
Q

What is interactional justice?

A

is how employees are treated within the processes.

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6
Q

Do you think you’re being compensated fairly?

A

Yes, I actually am being paid a little over the market rate for my position. And I think my benefits package is competitive.

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7
Q

Are you worried about job security?

A

No. Our organization needs a manager in my department, and the execs know it. If there was downsizing, it would be elsewhere.

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8
Q

Do you get along with co-workers and other managers?

A

Yes, I get along well with everyone, but I don’t think we do a good job here of creating a team atmosphere. I have tried really hard in my own department, but we seem like the exception, not the rule.

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9
Q

Do you feel like the organization values your work?

A

I don’t know. It seems clear that my job is important, but I guess I’m not sure if anyone sees how much I do. A little recognition would be nice, and some opportunities to grow my career further in the organization would appeal to me.

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10
Q

It sounds like your basic needs are being met, but we should be doing more to help you feel happy here. Is that right?

A

Yeah, it does. My job definitely looks good on paper, but I’m not sure that anyone will miss me when I’m gone. I really want to work somewhere that values me and my potential.

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11
Q

Compensation

A

Dante felt his compensation was good — above market rate — and his benefits were competitive. If the opposite had been true, A’Nissa could have done some market research to advise the organization on possible changes to its pay structure and benefits packages, if warranted.

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12
Q

Job Security

A

Again, Dante seemed certain that his position was safe. But if he wasn’t, A’Nissa could have alerted organization executives to his concerns. It is detrimental to morale when employees are worried that layoffs, job realignment, and other workforce changes are imminent. If that worry is unfounded, HR can help reassure employees that the organization is stable

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13
Q

Belonging/Connections

A

Dante didn’t think the organization was team-oriented and felt like he had to work hard to foster a team atmosphere in his department. HR can be instrumental in establishing the company culture, so A’Nissa could look for ways to promote team-building. This could be dinners, outings, team training events, team recognition awards, etc.

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14
Q

Self-worth

A

Dante also expressed the feeling that no one saw how hard he worked. A’Nissa could set up opportunities for recognition: A shout-out in the company newsletter would be a no-cost way to acknowledge top workers like Dante. In addition, she could recommend that the organization start offering training and education opportunities for managers to build or hone their skills.

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15
Q

What are the 5 main components of comprehensive compensation and benefits package?

A
  1. Pay
  2. Benefits
  3. Work/Life
  4. Rewards/Awards
  5. Learning
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16
Q

What is Pay?

A

Employee compensation may consist of base pay, variable pay (tied to performance or results), and premium pay (for special skills or working non-traditional hours).

Ex)

  • Hourly wage/salary
  • Commission
  • Bonuses
  • Stock options
  • Shift differential
  • Company car or cell phone
17
Q

What are Benefits?

A

Employee benefits may be discretionary or non-discretionary (mandated by federal or state law). Discretionary benefits include health and welfare benefits, retirement plans, and paid time off.

Ex)

  • Social Security taxes
  • Worker’s Compensation insurance
  • Health, Dental, Vision Insurance
  • Long or short term disability insurance
  • Paid vacation and sick days
18
Q

What is Work/Life?

A

Many organizations offer programs to help employees balance work, family, and personal needs. These may be low- or no-cost options.

Ex)

  • Employee Assistance Program (EAP)
  • Gym Membership
  • On-site child care
  • Flexible schedule/telecommuting
19
Q

What are Rewards/Awards?

A

Employee recognition programs aim to boost morale and engagement. They may be simple or elaborate and may or may not include monetary rewards.

Ex)

  • Special parking spots
  • Annual awards dinner
  • Gift cards
  • 1, 5, 10 year anniversary gifts
20
Q

What is Learning?

A

Professional development is beneficial to both the employee and the organization. Some industries also require continuing education for certification.

Ex)

  • Internal or external training
  • Seminars
  • Mentoring
  • Tuition assistance
  • Career coaching
  • Professional Memberships
21
Q

What is Internal equity vs market rate?

A

Organizations can set wages based on industry standards or by creating an internal job hierarchy

With hierarchy, it’s vital to understand which positions are similar so they’re priced similarly (internal equity).

With market rate comparisons, it can be difficult to determine which external jobs most closely match your own

22
Q

What is entitlement vs performance pay?

A

The entitlement philosophy rewards loyalty with automatic increases, such as cost-of-living adjustments or seniority-based pay. Market-rate research informs the raise amounts.

In pay-for-performance systems, employees get ahead only by achieving certain outcomes.

Calculating these raises requires broader industry research.

23
Q

What is lead, lag, or match?

A

The organization must decide whether it wants to lead, lag, or match prevailing wages in the industry. The state of the labor market and the type of position can influence this decision.

Unskilled jobs where labor is plentiful may pay less than market rate (lag), while organizations seeking top talent in a tight market might go above market rate (lead).

24
Q

Which of these HR announcements fit a pay for performance philosophy (select all that apply)

A
  • Annual one on one reviews begin next week. During this time, your manager will explain how your raise was calculated.
  • During July and August, employees who surpass their weekly quotas will get a 3-5% bonus
25
Q

What is a market rate?

A

Average wages, usually within a range for similar jobs in the industry

26
Q

An advantage of flexible compensation programs is that they:

A

recognize employee needs

27
Q

Prospective hires

A

A position’s benefits package can entice top talent, so it’s worthwhile in job postings to include perks that set your organization apart

28
Q

New Hires

A

During on-boarding, it’s important for Human Resources staff to be available to explain compensation and benefits options and policies.

Tell how and when new hires will be paid and explain what information they will see on paychecks/pay stubs

Answer questions about available insurance plans, and make sure they know about all the non-cash benefits and perks they are eligible for.

29
Q

Employees (directly)

A

Communication about benefits and policies should be ongoing, not just leading up to and during open enrollment periods

Benefits changes, policy reminders, and announcements can go in the employee newsletter or message board.

30
Q

Employees (indirectly)

A

If an organization has a financial adviser, insurance broker, or tax planner available to employees, it can provide these outside resources with relevant employee benefits materials to use for planning purposes.

31
Q

Legally required

A

Some communications are mandated, so it’s important for HR to know what these are and how they must be shared.

Examples include ERISAERISA - required reports, FMLAFMLA policy statements, and HIPPAHIPPA and COBRACOBRA rights notifications.

32
Q

The key objective of an effective benefits communications program is to:

A

educate employees about how to use their plans

33
Q

To facilitate employee buy-in to a new compensation and benefits program, most significant information to communicate is:

A

how the changes affect employees

34
Q

Name 5 components of total rewards

A
  1. Pay
  2. Benefits
  3. Work/Life
  4. Rewards/Awards
  5. Learning
35
Q

In Maslow’s hierarchy, what need comes after security?

A

Belonging

36
Q

Define distributive justice.

A

The perceived fairness of employee compensation

37
Q

Describe a situation where an organization may choose to lead on pay.

A

When the job requires specific skills or education, and the labor market is tight — for example, healthcare workers such as registered nurses and anesthesiologists

PHR Certification (40 decks)

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