Hrm Final Exam Book Outline

Front 1

LO1: The Strategic Importance of Providing Employee Benefits and Services.

Back 1

Employee Benefits and services:
• Increase Productivity.
• Contain Costs.
• Improve Retention.
Flexible benefits plan:
Targeted benefits plan:
• Support Business Strategies.

Front 2

LO2: Employee Benefits and Services within an Integrated HRM System.

Back 2

Mandatory benefits and services
Voluntary benefits and services
• Other HR Activities.
• The External Environment.
Labor Markets.
Unions.
Laws and Regulation.
• The Organizational Environment.
Size.
Company Culture.

Front 3

.LO4: Mandatory Benefits and Services.

Back 3

The Social Security At of 1935: provides for retirement, disability, and unemployment insurance.
• Social Security Insurance.
• Unemployment Compensation.
• Workers’ Compensation and Disability Insurance.
• Family and Medical Leave.
Family and Medical Leave Act of 1993 (FMLA): requires employers with 50 or more workers to grant an employee up to 12 weeks of unpaid leave for the birth or adoption of a child, to care for a spouse or an immediate family member with a serious health condition.
Extending FMLA protections for unpaid leave up to 26 weeks to family members caring for a military service ember with a serious injury or illness incurred in the line of duty.
Extending FMLA protections for unpaid leave up to 12 weeks to military family members for “qualifying exigencies” which include short-notice deployment and post deployment activities.
Permitting employees to require the at employees use the company’s customary leave request procedures for FMLA leave.
Permitting employers to require that employees follow the company’s existing rules for use of paid time off when such leaves are combined with FMLA leave.

Front 4

LO5: Voluntary Benefits and Services: Retirement and Savings plans and pensions.

Back 4

Qualified plan
Non-qualified plan
• Defined Benefit Plans.
• Defined Contribution Plan.
Noncontributory plan: if only the employer contributes to the retirement account
Contributory plan: when both the employee and the employer contribute to the retirement account.
401(k) s and 403(b) s.
Employee Stock Ownership and Profit Sharing Plans.
• Cash Balance Plans.
Portable benefits: benefits that employees can take with them when they leave the firm for a different employer.
• Legal Consideration.
ERISA.
Employee Retirement Income Security Act of 1974 (ERISA): is designed to protect the interests of workers covered by private, voluntary retirement plans by regulating the management of pension funds.
Pension Benefit Guaranty Corporation (PBGC): administers the required insurance program and guarantees the payment of basic retirement benefits to participants if a plan is terminated.
Other Laws Related to Retirement Plans.
Economic Recovery Tax Act of 1981: allows employees to make tax-deductible contributions to (1) an employer-sponsored pension, profit-sharing, or savings account or (2) to an individual retirement account (IRA).

Front 5

LO6: Voluntary Benefits and Services: Health Care Benefits and Services.

Back 5

• Medical Care.
 Conventional Insurance Plans.
 Health Maintenance Organization.
• Primary Care Physicians (PCP): who serve as gatekeepers of the employee’s health care.
 Preferred Provider Organizations.
 Point of Service Plans.
 Consumer-Driven Plans.
• Health Saving Accounts (HSAs): tax-free accounts funded by employees, employers, or both that set aside money to pay health care expenses.
• Wellness Programs.
• Employee Assistance Programs.
 Employee Assistance Programs (EAPs): are designed to assist employees with chronic personal problems that hinder their job performance and attendance.
LO7: Voluntary Benefits and Services: Paid Leave.

Front 6

LO7: Voluntary Benefits and Services: Paid Leave.

Back 6

• Off the Job Paid Leave.
o Holiday and Vacations.
o Other Paid Leaves.
o Paid Time Off Plans.
 Paid time off (PTO) plans: combine vacations, sick and personal days into one bank, allowing employees to take a specific number of days off for any reason.
• On the Job Paid Leave.

Front 7

LO8: Voluntary Benefits and Services: Work-Life Benefits and Services.

Back 7

• Flexible Work Arrangements.
• Child Care Services.
• Elder Care Services.
• Domestic Partner Benefits and Services.

Front 8

LO9: Provide Voluntary Benefits and Services: Other Benefits and Services.

Back 8

• Development Benefits and Services.
• Personal Services.
• Business Travel and Relocation Assistance.

Front 9

LO10: Administrative Issues

Back 9

• Determine the Benefits and Services Package.
• Determine the Level of Flexibility.
• Communication.

Front 10

LO11: Current Issues.

Back 10

• Containing the Escalating Cost of Health Care.
 Carve-outs: the use of specialized vendors for certain benefits, such as prescription drug, mental health, and vision benefits.
• The Patient Protection and Affordable Care Act of 2010 (PPACA).
 The Patient Protection and Affordable Care Act of 2010 (PPACA): a comprehensive health care reform bill that mandates health insurance for individuals and reforms insurance practices.
 The establishment of state-based insurance exchanges that list the cost and coverage of private insurance plans to allow comparison shopping.
 New restrictions on consumer-driven plans, including new ceilings on deductible levels, increased penalties for nonqualified withdrawals from HSAs, and change in HAS expense qualifications.
 Financial help for organizations offering early retirees health coverage and for small firms offering wellness programs.
 For companies with more than 200 employers, automatic enrollment of new employees into health care coverage.
 Employers with new plans must provide preventive services typically associated with wellness programs at full coverage and no deductibles.
 Wellness program participation can be rewarded with incentives, including health care premium discounts and rebates.

Front 11

LO1: THE STRATEGIC IMPORTANCE OF WORKPLACE SAFETY, HEALTH, AND WELL-BEING.

Back 11

• Enhance Productivity.
• Contain Costs.
• Attract and Retain Talent.
• Support Business Strategies.

Front 12

LO2 PROMOTING SAFETY, HEALTH, AND WELL-BEING WITHIN AN INTEGRATED HRM SYSTEM.

Back 12

• Other HR Activities.
 Job Analysis and Competency Modeling.
 Performance Management.
 Training and Developing.
 Benefits and Services.
 Unionization and Collective Bargaining.
• The Organizational Environment.
 Size.
 Technology.
 Company Culture.
• The External Environment.
 Laws and Regulations.
 Economic Globalization.
 Country Culture.

Front 13

LO3: THE HR TRIAD.

Back 13

Employees also have several responsibilities specified by OSHA. These include that employees have the responsibility to:
1. Comply with OSHA standards, rules, and regulations.
2. Comply with employer orders related to the Act.
3. Use all safety and personal protective equipment provided by or as directed by OSHA or their employer.

Front 14

LO4: WORKPLACE SAFETY HAZARDS.

Back 14

• Occupational Accidents.
 Working Conditions.
In general, the factors that most affect workplace accidents are:
1. The nature of the work itself and the times for doing that work (e.g., vehicle driving, shift work, working hours).
2. The tools and technology used to do the job (e.g., heavy machinery, ladders, and personal computers).
3. The availability of guns brought to work.
 Employee Characteristics.
• Occupational Injuries.
• Workplace Violence.

Front 15

LO 5: WORKPLACE HAZARDS TO HEALTH AND WELL-BEING.

Back 15

• Occupational Illnesses.
• Hazards to Mental Health.
• Workplace Stressors.
 Organizational Change.
 Physical Environment.
 Poorly Designed Jobs.
 Stress-Prone Employees.
• Job Burn-Out.
 Emotional Exhaustion.
 Depersonalization.
 Low Personal Accomplishment.
 Performance Deterioration.

Front 16

LO 6: INTERVENTIONS TO IMPROVE WORKPLACE SAFETY.

Back 16

• Measuring and Monitoring Safety.
 Incidence Rate.
 Frequency Rate.
 Severity Rate.
It recognizes that not all injuries and illnesses are equal. Four categories of injuries and illnesses have been established:
1. Deaths.
2. Permanent total disabilities.
3. Permanent partial disabilities.
4. Temporary total disabilities.
• Accident Prevention.
 Work Environment Design.
 Safety Performance Management.
 Improved Working Conditions.
 Health and Safety Committees.
 Alcohol and Drug Testing.
• Injury Prevention.
• Violence Prevention.

Front 17

LO7: INTERVENTIONS TO IMPROVE WORKPLACE HEALTH AND WELL-BEING.

Back 17

• Measuring and Monitoring Health and Well-Being.
 Record Keeping of Workplace Chemicals.
 Monitoring Exposure to Hazardous Substance.
• Illness Prevention.
 Reducing Presenteeism.
 Genetic Screening.
• Stress Management.
• Wellness Programs.
 Weigh Loss.
 Smoking Cessation.
 HIV/AIDS.
Health Assessments.
 Wellness Incentives.
• Employee Assistance Programs
• Assessing Intervention Effectiveness.
 Evaluate.
 Revise.

Front 18

LO8: CURRENT ISSUES.

Back 18

Two current issues related to safety, health, and well-being are privacy and dealing with the use of medical marijuana. Privacy is particularly important when dealing with health-related issues. Drug testing and wellness programs can raise concerns about employee privacy. The fact that medical marijuana is legal in some states but is classified as an illegal drug by the federal government creates some difficult issues for employers.

 Privacy.
Privacy Act of 1974 was the first major statute to address issues of privacy directly, and it gave individuals the right to verify information collected about them and used by federal agencies (not private employers) in selection and employment decisions. It also allowed individuals to:
• Determine which records pertaining to them are collected, used, and maintained.
• Review and amend such records.
• Prevent unspecified use of such records.
• Pursue a civil suit for damages against those who intentionally violate the rights specified in the act.
 Dealing with the Use of Medical Marijuana.
Employers in Alaska, Arizona, California, Colorado, Hawaii, Maine, Michigan, Montana, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, and Washington- and the District of Columbia, have two basic options:
1. Treat it like any other illegal drug.
2. Treat it like any other legal drug.

Front 19

Learning Objective 1: The Strategic Importance Of Unionization And Collective Bargaining.

Back 19

• Unionization- is the effort by employees and outside agencies to act as a single unit when dealing with management over issues relating to their work.
• Collective Bargaining- includes the negotiation of work conditions, the interpretation and enforcement of the collective agreement, and the resolution of conflicts arising from the agreement.
• Flexibility.
1. Just Cause Clause- in collective bargaining agreements, clauses that detail the specific grounds for discipline or provide a general statement that discipline can only occur for proper and just reasons.
2. Employee Voice- the policies and programs that allow employees to express their opinions to management.
• Cost.
• Profitability.

Front 20

Learning Objective 2: Unionization And Collective Bargaining Within The Integrated HRM System

Back 20

1. Unions.
2. Laws & regulations.
3. Political landscape.
4. Labor markets.
• Local Unions- There are approximately 70,000 local unions to represent workers.
 business representative- a full-time employee handling worker grievances and contract negotiations.
• National unions- National unions organize, charter, and control member locals.
 Currently the largest national unions are
• Federations of Unions- Most national unions belong to a federation of unions.
• Laws and Regulations.
 National Labor Act of 1935 ligitimzizes unions, they have 5 components that make it illegal for companies to ban unions.
• Interfering with, restraining, or coercing employees who exercise their right to organize.
• Dominating or interfering with the formation or administration of a labor union.
• Discriminating in any condition or term of employment to affect membership in a labor union.
• Retaliating against employees for filing unfair labor practice charges.
• Refusing to bargain collectively with a legally chosen representative of employees.
• Labor Management Relations Act of 1947- commonly known as the Taft-Harley act is a pro-employer act that constrains the practices of unions. It has 3 major components.
 First it specifies and bans six union actions as unfair labor practices.
• Restraining or coercing employees who exercise their right to refrain from union activities.
• Conducting strikes or boycotts in certain situations.
• Causing an employer to discriminate in any condition or term of employment to affect membership in a labor union.
• Charging excessive initiation fees or dues.
• Refusing to bargain in good faith with the employer.
• Requiring employers to pay employees for services not performed, known as featherbedding.
 Second Component is that it allows states to become right to work states.
• Right to work state- a U.S. state in which employees cannot be required to join the union as a condition of employment in a company that is already organized.
 Third Component is the creation of the Federal Mediation and Conciliation Service
• Federal Mediation and Conciliation Service(FMCS)- an independent federal agency established to preserve and promote labor–management peace and cooperation.
• Labor Management Reporting and Disclosure Act of 1959- Commonly known as the Landrum-Griffin Act it regulates internal union affairs,it established rights for union members and responsibilities for union officers it has 4 major components:
 A bill of rights for union members.
 Reporting requirements for unions.
 Election procedures for union officers.
 Safeguards to protect union funds and assets.
• Political Landscape.
 Card Checking- a procedure that grants a union recognition by a company when 50 percent of the employees have indicated they are in favor of the union by signing authorization cards.

Learning Goal 4: Provide some examples of the roles and responsibilities of the extended HR triad.
• The Landrum-Griffin Act specifies a number of responsibilities for unions and their officers, these include:
 Managing funds and property of the union responsibly.
 Bonding all officers who handle the funds.
 Filing information and financial reports annually.
 Complying with numerous officer election regulations.

Front 21

Learning Goal 5:
• Identify factors that increase attraction to unionization:

Back 21

 Dissatisfaction.
 Psychological Contract- a contract that consists of an employee’s unspecified expectations about reasonable working conditions, requirements of the work itself, the level of effort that should be expended on the job, and the nature of the authority the employer should have in directing the employee’s work.
 Lack of Power.
 Management Efforts.
 Union Instrumentality.

Front 22

Learning Goal 6: The Union Certification Process.

Back 22

• Discuss the process of Union certification- if the majorities of employees vote for union representation, then all employees are bound by that choice.
• Determination of the Bargaining Unit.
 Bargaining Unit- the group of employees that will be represented by the union.
• Election, Certification, and Decertification.
 Certification Election-an election that determines whether the union is recognized as the legal representative of the employees in the organization.
 Decertification Election- an election that determines whether a union is removed as the legal representative of the employees in the organization.

Front 23

Learning Goal 7: The Collective Bargaining Process.

Back 23

• Explain the collective bargaining Process- Involves employees, management, and the union with the government influencing interaction among the three, and each group has different goals. The terms of settlement- and whether or not a settlement is even reached-depend on:
 The type of bargaining.
 How the collective bargain agreement is negotiated.
 The issues being negotiated.
 The conflict resolution techniques used.

Front 24

Learning Goal 7: The Collective Bargaining Process.

Back 24

• Types of Bargaining.
 Distributive Bargaining- the process in which each party negotiates with the goal of achieving its own best possible outcome.
 Adversarial Relationship- the type of relationship between a union and management in which the union’s role is to gain concessions from management during collective bargaining and to preserve those concessions through the grievance procedure.
 Integrative Bargaining- a process that focuses on creative solutions that reconcile (integrate) the parties’ interests and yield joint benefits.
 Cooperative Relationship- the type of relationship between a union and management in which they both solve problems, share information, and integrate outcomes.
 Concessionary Bargaining- the process in which employers seek givebacks or concessions from the unions, promising job security in return.
 Two tier wage system- a system in which a separate, lower-paying wage is created for new workers.
 Continuous Bargaining- the process in which joint committees with representatives from both labor and management meet on a regular basis to explore issues and solve problems of common interest.
 Characteristics of continuous bargaining
 Frequent meetings during the life of the contract
 A focus on external vents and problem areas rather than on internal problems
 Use of the skills outside experts in decision making
 Use of a problem solving approach
 Intraorganizational Bargaining- the process in which representatives for labor and management confer with their respective constituents over changes in bargaining positions.

Front 25

Learning Goal 7: The Collective Bargaining Process.

Back 25

• Issues for Negotiation
 Mandatory Issues- issues that employers and employee representatives (unions) are obligated to meet and discuss, such as wages, hours, and other terms and conditions of employment
 Permissive Issues- issues that are not specifically related to the nature of the job but still of concern to both parties.
 Prohibited Issues- issues those concern illegal or outlawed activities that may not be discussed in collective bargaining sessions.
• Conflicts and Their Resolution
 Strike- a condition that occurs when the union is unable to get management to agree to a demand it believes is critical and tells employees to refuse to work at the company.
 Lockout- a situation in which management refuses to allow employees to work.

Front 26

Learning Goal 8: Maintenance and Evaluation

Back 26

• Specify how firms administer union contracts and evaluate the effectiveness of the collective bargaining process- Disputes will inevitably occur over the contracts interpretation and application. These disputes are usually resolved with a grievance procedure specified in the contract. Common sources of grievances are:
 Outright violation of the agreement.
 Disagreement over facts.
 Dispute over the meaning of the agreement.
 Dispute over the method of applying the agreement.
 Argument over the fairness or reasonableness of actions.

Front 27

Learning Goal 9: Current Issues

Back 27

• Discuss two current issues in unionization and collective bargaining:
 Global Unions- represent the attempt by unions around the world to coordinate their activities.
 Public Unions- currently have an unprecedented level of power in many countries around the world.