OSHA Exam 3 Flashcards
Basic Principles of an Insurance Program• Insurance: uneventful protection for a small business or small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced.• Identify business risks to be covered• Obtain coverage for major potential losses
Insurance Planning Risks to Consider• Loss or damage to property• Loss of income resulting from business interruption• Liability to employees• Liability to public• Death of key employees (large corporation)• Vehicles/rolling stock• Burglary/robbery• Extensive loss from bad debts• Financial hardships• Shoplifting/loss through dishonest employees• Riots/civil disobedience
Insurance Examples but not limited to• Key-person insurance: life insurance that protects a firm against losses due to the death of a “ key” employee• Buy-sell insurance: insurance on an owner that will supply money for a partner to buy his share - upon death
Insurance Type• Product liability/malpractice insurance: protects financial losses incurred by producers/sellers of goods or services due to injury or damage resulting from use of said product• Casualty insurance: insurance that provides monetary benefits to a business that has experienced an unforeseen peril such as a flood or fire• Others• Life insurance
Risk Management• …..refers to efforts designed to preserve assets & earning power associated with a business• Risk management has gown out of insurance management; therefore the two terms are often used interchangeable…however risks are much broader, so what does one do about risks?• Eliminate risks – remove the cause• Minimize risks – good management• Shift the risk – purchase outside insurance….to cover the business in regards to monetary compensation in the event that peril is experienced…business or personal• Absorb the risk – (Self Insurance) percentages of earnings as a contingency for possible future loses
Cost Analysis• FIXED EXPENSES• ……..those, over a relevant range, which do not change but becomes progressively smaller on a per-unit basis as volume increases. Likewise, these do not decrease with increased business, not do they decrease with declining business activityo Examples: Rent, Salaries, Depreciation, Insurance, Debt, • Variable Expenses• …..that cost which is uniform per unit but fluctuates in total in direct proportion to change in the related activity or volumeo Examples: Supplies, Hourly wage expense, Repairs, Utilities, Taxes
Overhead• Any cost not specifically associated with production of identifiable products and services• Expenses incurred in the normal operation of a business
Break Even Point• The point in which total sales revenue equals total costs• May also be referred to as break even analysis
Cost Control• Expense Classification is usually based on the industry standard
Operating Ratios• A comparison of profit and each item of expense in the income statement expressed as a percentage of sale income, the operating rations can be compared to industry standards in regarding to measuring possible growth of the business
Human Resource Management• Job description – that document that lists the major responsibilities and tasks of a specific position• Job analysis – a process for determining the critical components of a job for purposes of selecting, training and rewarding personnel
Components of a Job Description• Job description• Effective date• Supervisory person• Salary range (only thing optional)• Qualifications• Responsibilities
Job Specification• A document that lists knowledge, skills, abilities and personal characteristics a job holder must possess to perform effectively.
Recruitment & Selection • Labor market - supply & demand• Demographics• Wages/benefits• Identity of the organization• Security & potential for advancement• Environmental conditions• Responsibilities• Experience requirements
Federal Legislation After Employment• Title VII of the Civil Rights Act of 1964, amended in 1972, and amended again in 1978 by the Pregnancy Discrimination Act addressed the following:• (Lyndon Johnson pushed civil rights acts in texas….)
Federal Legislation Civil Rights 1964, 1972, 1978• Outlaws discrimination in employment based on race, color, religion, sex, pregnancy or national origin (avoid questions/statements regarding items)• Jurisdiction employers and/or unions with 15 or more employees, employment agencies, union hiring halls, institutions of higher learning, federal, state, and local governments
Age Discrimination Act 1967• Outlaws discrimination in employment against those over 40 years old• Jurisdiction employers & unions with 25 or more employees, employment agencies: federal, state, and local government
Equal Pay Act 1963• Outlaws discrimination in pay based on the sex of the worker• Jurisdiction employers engaged in interstate commerce and most employees of federal, state and local governments
Rehabilitation Act of 1973• Outlaws discrimination in employment based on handicaps of employees who with practical accommodation could to the job• Jurisdiction: covers federal government contractors with contracts of $2500 or more
Vietnam Era Veterans Readjustment Act 1974• Outlaws discrimination in employment against Vietnam Era Veterans• Jurisdiction: covers federal government contractors with contracts of $10,000 or more
Immigration Reform Act of 1987• Outlaws non-documented persons from employment in the US• Jurisdiction: covers all employers
Americans with Disabilities Act of 1990• Prohibits discrimination against any qualified individual with a disability• Jurisdiction: covers firms with 15 or more employees will be covered
Fair Labor Standard Act (Wage & Hour Law)• Outlaws discrimination practices in pay: to pay a minimum of one & one-half of the regular wage for hours beyond forty• Jurisdiction: all businesses are covered under federal and/or state legislation
Employment Application Process• Vital information, including employment history, include information which will determine qualifications for employment• Recent court rulings prohibit inquiries relative to race, sex, age, ancestry or court & arrest records• In addition, information required for records, such as age, sex, religion, number of dependents, may be requested after applicant is hired….inasmuch as it is not used for subsequent discrimination, such as promotion/layoff
BFOQ-Bona Fide Occupational Qualification• A qualification that is absolutely necessary for the job….it is an allowed and approved reason for discrimination ie: licenses• ……..approvals are generally sought & granted on a case by case basis
Employment Interview• Structured (formal) a predetermined set of questions asked of all applicants• Unstructured (informal) questions developed as the interview proceeds
Reference Checking• It is illegal to seek personal information not related to employment• Signed release should be sought from applicant to seek reference information
The Resume• Usually submitted voluntarily by the applicant• AKA Curriculum Vitae (CV)
uneventful protection for a small business or small business owner in regards to monetary compensation in the event that a business and/or personal peril is experienced.
Insurance:
