question

protean career

answer

based on self-direction with the goal of psychological success in one's work

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psychological success

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feeling of pride and accomplishment that comes from achieving life goals

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development planning system

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retain and motivate employees by identifying and meeting development needs

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boundaryless

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careers may involve identifying with a job or profession than with the present employer

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4 steps in the career management process

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self-assessment reality check goal setting action planning

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2 responsibilities in the career management process

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employee responsibility company responsibility

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4 parts of the 360-degree feedback

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1. strength and weaknesses 2. development goal 3. process for recognizing goal accomplishment 4. strategies for reaching goals

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job enlargement

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adds challenges or new responsibilities to an employee's current jobs

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job rotation

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helps employees gain an overall appreciation and understanding of the companies goals and different functions, develops a network of contacts, and improves their problem solving and decision making skills

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downward move

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occurs when an employee is given less responsibility and authority

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an experienced, productive senior employee who helps develop a less- experienced employee

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mentor

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9 characteristics of a successful mentoring program

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1.Participation is voluntary 2.Matching process is flexible 3.Purpose is clearly understood 4.Mentors are chosen on ability and willingness 5.Program length is specified 6.Minimum level of contact is specified and how often and when they will meet and how they will communicate outside of meetings 7.Contact among participants is encouraged 8.Program is evaluated 9.Employee development is rewarded

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Reality check

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refers to the information employees receive about how the company evaluates their skills and knowledge and where they fit into the company's plans (potential promotion opportunities, lateral moves).

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Goal setting

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refers to the process of employees developing short- and long-term career objectives that usually relate to desired positions and discussed with the manager and written into a development plan.

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Self?assessment

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helps employees determine their interests, values, aptitudes, and behavioral tendencies

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action planning

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employees determine how they will achieve their short- and long term career goals.

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To compete, organizations must ensure:

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- Good performers are motivated to stay. - Chronically low performers are allowed, encouraged or if necessary, forced to leave.

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2 Types of Turnover:

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Involuntary turnover voluntary turnover

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Involuntary turnover

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

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Voluntary turnover

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initiated by employee (often those the company would prefer to keep

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Employment-at-will doctrine

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in the absence of a specific contract, either an employer or employee could sever the employment relationship at any time.

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Violence in the workplace

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caused by involuntary turnover has become a major organizational problem.

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A wrongful discharge suit attempts to establish that the discharge either

answer

(1) violated an implied contract or covenant (that is, the employer acted unfairly) or (2) violated public policy (that is, the employee was terminated because he or she refused to do something illegal, unethical, or unsafe).

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Outcome fairness

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the judgement that people make regarding outcomes received relative to outcomes received by others with whom they identify.

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Procedural justice

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focuses on methods used to determine the outcomes received.

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Interactional justice

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the interpersonal nature of how the outcomes were implemented.

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Six Determinants of Procedural Justice

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1. consistency 2. bias suppression 3. information accuracy 4. correctability 5. representativeness 6. ethicality

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Consistency

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The procedures are applied consistently across time and other persons.

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Bias suppression.

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The procedures are applied by a person who has no vested interest in the outcome and no prior prejudices regarding the individual.

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Information accuracy

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The procedure is based on information that is perceived to be true.

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Correctability

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The procedure has built-in safeguards that allow one to appeal mistakes or bad decisions

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Representativeness

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. The procedure is informed by the concerns of all groups or stakeholders (co-workers, customers, owners) affected by the decision, including the individual being dismissed

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Ethicality

answer

The procedure is consistent with prevailing moral standards as they pertain to issues like invasion of privacy or deception.

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Pay structure

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relative pay of different jobs (job structure) & how much they are paid (pay level)

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Pay level

answer

average pay, including wages, salaries & bonuses.

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Job structure

answer

relative pay of jobs (range of pay often expressed by salary grades).

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Pay policies

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are attached to jobs, not individuals.

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Equity theory

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people evaluate fairness of their pay by comparing their pay to that of other people.

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Efficiency wage theory

answer

- wages influence worker productivity.

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Benchmarking

answer

- procedure by which an organization compares its own practices against the competition

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3 issues to consider before using pay surveys:

answer

1. Which employers should be included in the survey? 2. Which jobs are included in the survey? 3. If multiple surveys are used, how are all rates of pay weighted and combined?

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compa-ratio

answer

the actual average pay for grade/midpoint pay for grade. The compa-ratio directly assesses the degree to which actual pay is consistent with the pay policy.

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3 Theories Explain Compensation's Effects:

answer

Expectancy Theory reinforcement theory agency theory

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Reinforcement Theory

answer

In Thorndike's Law of Effect, a response followed by a reward is more likely to recur in the future. The importance of a person's actual experience in receiving the reward is critical. If high performance is followed by a reward, high performance is likely to be repeated.

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Expectancy Theory

answer

says that motivation is a function of valence, instrumentality, and expectancy.

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Agency Theory

answer

focuses on divergent interests and goals of the organization's stakeholders and the ways that compensation can be used to align these interests and goals.

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Agency costs

answer

may be minimized by principal choosing a contracting scheme that aligns agent's interests with principal's interests.

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Agency costs can arise from two factors:

answer

1. Principals and agents may have different goals (goal incongruence). 2. Principals may have less than perfect information on the degree to which the agent is pursuing and achieving the principal's goals (information asymmetry)

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Merit pay programs

answer

link performance-appraisal ratings to annual pay increases

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merit increase grid

answer

combines an employee's performance rating with employee's position in a pay range to determine size and frequency of his or her pay increases

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Merit Bonus

answer

- Merit pay paid in the form of a bonus, instead of a salary increase

question

Individual incentives

answer

reward individual performance but payments are not rolled into base pay. Performance is measured as physical output rather than by subjective ratings.

question

Individual incentives are rare because:

answer

Most jobs have no physical output measure. Many potential administrative problems. Employees may only do what they get paid for. Do not fit in with team approach. May be inconsistent with organizational goals. Some incentive plans reward output over quality or service

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profit sharing

answer

payments are based on a measure of organization performance (profits), and payments do not become a part of base pay.

question

profit sharing Advantages-

answer

profit sharing may encourage employees to think more like owners. labor costs are automatically reduced during difficult economic times, and wealth is shared during good times.

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profit sharing Disadvantage

answer

workers may perceive their performance has less to do with profit than top management decisions over which they have little control.

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Ownership

answer

encourages employees to focus on organization's success, but may be less motivational the larger the organization.

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Stock options

answer

plan that give employees the opportunity to buy company stock at a previously fixed price.

question

Employee stock ownership plans (ESOPs)

answer

give employers certain tax and financial advantages when stock is granted to employees.

question

Gainsharing

answer

- form of compensation based on group or plant performance rather than organizationwide profits that does not become part of the employee's base salary.

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Average cost of benefits

answer

is about 44.5% for every payroll dollar and about 30.8% of total compensation package.

question

Laws mandating benefits

answer

passed during and after Great Depression

question

Wage and price controls

answer

instituted during WWII and labor shortages

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Tax treatment of benefits programs

answer

marginal tax rate is % of an additional earnings that goes to taxes

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Social Security

answer

provides old-age insurance, unemployment insurance, survivors' insurance, disability insurance, hospital insurance and supplementary medical insurance.

question

4 Objectives of Unemployment Insurance:

answer

1. offset lost income during involuntary unemployment 2. help unemployed workers find new jobs 3. provide incentive for employers to stabilize employment 4. preserve investments in skills by providing workers with income during short-term layoffs

question

Unemployed workers are eligible for benefits if they

answer

1. have a prior attachment to the workforce 2. are available and actively seeking work were not discharged for cause, did not 3. quit voluntarily and are not out of work because of a labor dispute.

question

Workers' compensation laws

answer

protect employees who are involved in job related injuries and the families of workers who accidentally die on the job

question

4 Categories of Benefits:

answer

disability income medical care death benefits rehabilitative services

question

2 major types of private group insurance

answer

medical insurance and disability insurance.

question

Medical insurance

answer

most important benefit; most full-time employees get such benefits.

question

Disability insurance

answer

includes short-term and long-term plans.

question

Group rates

answer

are lower because of economies of scale, ability to pool risks and greater bargaining power of a group

question

Offered at employer's discretion; plans not legally required.

answer

disability income medical care death benefits rehabilitative services

question

Consolidated Omnibus Budget Reconciliation Act (COBRA)

answer

requires employers to permit employees to extend health insurance coverage at group rates for up to 36 months following a qualifying event, such as termination

question

ERISA

answer

guarantees that employees, after working a certain number of years, earn the right to a pension upon retirement, referred to as vesting rights

question

Sick Leave Programs

answer

provide full salary replacement for a limited period of time, usually not exceeding 26 weeks. Amount based on length of service, accumulating with service.

question

Cost control

answer

Larger the benefit cost, greater the savings possibility. Growth rate may result in serious future costs. Cost containment efforts work to extent that the employee has significant direction in choosing how much to spend in a benefit category.

question

Percentage of full-time workers receiving job-related health benefits has declined, with more than _________ Americans currently uninsured

answer

53 million

question

Methods

answer

include personal interviews, focus groups, and questionnaires.

question

advantages to Permitting employees to choose types and amount of benefits.

answer

employees more aware and appreciative of their benefits package better match between package and employee's needs, which improves satisfaction and retention cost reductions

question

disadvantages to Permitting employees to choose types and amount of benefits.

answer

administrative cost adverse selection

question

Affordable Care Act: Impact on Employers

answer

Major impact on employer cost control efforts. Employers with 50 or more workers must offer health care coverage to full-time employees or else pay a penalty. Impacts taxes, coverage of dependents and wellness programs Some employers are looking at ways to avoid being covered by the new law

question

Flexible Spending Accounts

answer

Permits pretax contributions to an employee account that can be drawn on to pay for uncovered health care expenses. Funds must be spent during the year or they revert to the employer. Major advantage is take-home pay increases

question

Financial Accounting Statement (FAS) 106-any benefits (excluding pensions)

answer

provided after retirement cannot be funded on a pay-as-you-go basis; must be paid on an accrual basis. -Requires that any benefits (excluding pensions) provided after retirement (the major one being health care) can no longer be funded on a pay-as-you-go basis

question

Society

answer

labor unions' major benefit to society has been balancing power and institutionalization of industrial conflict in the least costly way.

question

National Labor Relations Act (NLRA, 1935)

answer

provides a legal framework conducive to collective bargaining.

question

Management

answer

decides to encourage or discourage unionization.

question

Labor Unions

answer

give workers formal and independent voice through collective action in setting employment terms and conditions.

question

National and International Unions

answer

Craft unions Industrial unions

question

Local Unions

answer

Responsible for contract negotiations and day-to-day contract administration, including grievance procedure.

question

AFL-CIO

answer

Advances shared interest of its member unions at the national level.

question

AFL-CIO

answer

is not a labor union but rather an association that seeks to advance the shared interests of its member unions at the national level.

question

Check-off provision

answer

is an automatic deduction of union dues from an employee's paycheck.

question

closed shop

answer

is a union security provision under which a person must be a union member.

question

union shop

answer

requires a person to join the union within a certain length of time after beginning employment.

question

agency shop

answer

does not require union membership, only that an agency fee be paid.

question

Maintenance of membership

answer

requires only that those who join the union remain members through the life of the current contract.

question

Right?to?work laws

answer

As a function of the Taft?Hartley amendment to the NLRA, states may decide to make mandatory union membership (or even dues paying) illegal

question

Wagner Act of 1935 (NLRA)

answer

enshrined collective bargaining as the preferred mechanism for settling labor-management disputes.

question

Section 7 of the NLRA

answer

employees have the "right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing and to engage in other concerted activities for the purpose of collective bargaining."

question

European Economic Community (EEC)

answer

is a confederation of most of the European nations that agree to engage in free trade with one another, with commerce regulated by the European Commission (EC)

question

North American Free Trade Agreement (NAFTA)

answer

agreement between Canada, the U.S., and Mexico provides an even larger free market than the EEC.

question

Asia

answer

provides a growth market for many firms. Japan, China, Singapore, Hong Kong, and Malaysia are significant economic forces.

question

GATT

answer

is an international framework of rules and principles for reducing trade barriers across countries around the world.

question

Hofstedes 5 cultural dimensions

answer

long term/ short term uncertainty avoidance individualism/collectivism power distance masculinity, feminity

question

Individualism/collectivism

answer

degree to which people act as individuals rather than as members of a group.

question

Power distance

answer

how a culture deals with hierarchical power relationships.

question

Uncertainty avoidance -

answer

- how cultures deal with the fact that the future is not perfectly predictable.

question

Masculinity-femininity

answer

division of roles between the sexes within a society.

question

Long-term/short-term orientation

answer

tendency of a culture to focus on long-term benefit or short-term outcomes.

question

educational opportunity

answer

A country's human capital is determined by a number of variables, primarily,

question

Categories of HRM Activities

answer

transformational traditional transactional

question

Transactional activities

answer

the day-to-day transactions such as benefits administration, record keeping, and employee services) are low in their strategic value.

question

Traditional activities

answer

such as performance management, training, recruiting, selection, compensation, and employee relations are the nuts and bolts of HRM.

question

Transformational activities

answer

create long-term capability and adaptability for the firm.

question

Outsourcing

answer

Contracting with an outside vendor to provide a product or service to the firm.

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