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30 Cards in this Set
- Front
- Back
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performance appraisals |
evaluation to determine correspondence between worker behavior/outcomes and employer expectations |
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How to improve performance appraisals |
-improve formats- rank vs ratings, standard (adjective) or behavior (BARS) or MBO (goal reaching outcomes) -Select better raters -360- customer raters, supervisors, peers, and subordinates -Understand rater process- keep diary of incidents, be aware of human fallacy and error -train raters- |
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Balanced scorecard |
weights performance based on customer satisfaction, employee internal growth and commitment, operational efficiency in internal processes, and financial measures |
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MBO |
Management by Objective- both a planning and appraisal tool. at beginning of performance appraisal period, set clear, smart goals. At end of period, evaluate based on completion of goals |
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360 degree feedback |
receiving feedback from many angles. ratings from supervisor, subordinates, peers, and customers. Requires a third party facilitator usually. |
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high comp and benefits consequences |
-often taken for granted and not a significant motivator for employees despite high costs -effects overall competitiveness of a firms communicating benefits is difficult (facilitate with intranet) but employees do not know language -30-40% of total comp |
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Affordable care act |
passed by Obama in 2010. requires health insurance or pay a penalty. penalty for businesses with 50 or more employees who do not offer health insurance. more about coverage than cost. |
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medical insurance |
most expensive benefit offered. listed as most important benefit that employees receive. Medical cost continue to rise exponentially and are more expensive in the US than any other country in the world. this creates a burden for organizations who have historically covered percent of medical rather up to a certain cost (defined benefit plan). wellness programs and encouraging healthy life styles can be a way to control costs. |
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pension/ pension plan |
-a form of deferred compensation. 1) deferred com to former employee or surviving spouse for previous commitment to org. 2) specify a normal retirement age to become eligible. 3)formula for calculating the benefit. 4) provide for integration with social security benefits. - second most expensive benefit especially with the exit of baby-boomer generation leaving the workforce ready to start collecting the benefits. |
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flexible benefits/ cafeteria style plan |
employees have the option to pick and choose which benefits |
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defined benefit |
employers establish their responsibility for a specific benefit, however, if the cost of that benefit rises, the employer is still responsible for the coverage negotiated and has to pay a higher cost. |
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defined contribution |
employers define the limits of their contribution in terms of dollar amount so that if cost rise, the responsibility or burden on the employer does not. cost containment strategy. |
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who should be covered? |
historically companies have offered far fewer part-time employees coverage. consider probationary periods for coverage, dependents of those covered, retirees, survivors of deceased employees, disabilities, employees during layoffs, strikes, or furloughs. |
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how should benefits be financed? |
noncontributory- employer pays total cost contributory- employer and employee share costs employee financed (except those required by law) |
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advantages for flex-ben |
1) satisfy unique needs 2) helps firms meet changing needs of workforce 3)increased involvement increases understanding of benefits 4)makes adding new benefits less costly 5)cost containment |
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disadvantages for flex-bem |
1)employees make bad choices and find themselves not covered for predictable emergencies 2)administrative burdens and expenses increase 3)adverse selection- they pick benefits they will use therefor premiums are higher 4)subject to nondiscrimination requirements in Internal revenue code. (young and old choose differently ect) |
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employer factors in choosing benefits |
-relationship to total comp (consider part of total comp) -cost of those benefits -competitiveness - attraction, retention, and motivation -legal requirements |
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employee factors in choosing benefits |
-equity compared to other sectors and groups of employees -personal needs |
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ENRISA |
employee retirement income security act sets guidelines and regulations for companies who offer pension plans (not a mandatory benefit) pension benefit guaranty corporation offers cop to employees promised pensions by orgs who have gone bankrupt |
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COBRA |
Consolidate Omnibus Budget Reconciliation Act law that allows a resigned or laid-off employee (through no fault of their own) continue to receive medical coverage on the employer plan but pays for it themselves. |
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Benefits Communications |
what is communicated, to whom it is communicated to, how it communicated, how frequently it is communicated. Can be facilitated through use of intranet (e-benefits) manuals should be accompanied by videos and meetings. failure to understand benefit is root cause of dissatisfaction |
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benefits cost containment strategies |
deductibles- claimant pays fee before making insurance claim coinsurance- portion of insurance premium is paid by employee benefits cutbacks- corresponds withe wage concessions- negotiate o eliminate employer contributions for some benefits defined contribution plan- dollar limitations benefits ceiling- max payout for certain benefits dual coverage- use spousal benefits instead |
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Dodd Frank Act |
requires all public companies to report the ratio of CEO pay relative to the median pay for employees. say on pay voting (non-binding) |
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SEC |
Securities Exchange Commission- oversight agency for Dodd Frank Act |
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executive pay mix considerations |
-base pay -short-term annual incentives -long-term incentives and capital appreciation plans -prerequisites (executive perks) |
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stock compensation vs stock option compensation |
stock- employee owns stock regardless of market fluctuations (if bought at $30 and drops to $10, they get $10) options- employee only makes profit from option (bought at $30 but market drops to $10, they receive no money) |
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option pricing models |
used to estimate current value of stock black-scholes model |
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why employees are chosen for expat assignments |
opportunity to develop international perspective, confidential assignment only entrusted with certain employee, particular skills not possessed by locals, |
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expat pay package |
salary- usually stays the same taxes- differences paid by employer. tax equalization housing- place to live allowances and premiums- cost of living, child care and education, spousal employment |
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balanced score sheet appraoch |
maintains same spending power of expats in new county by paying for differences in pay package. |
