Mgmt 461 Final Test

Front 1

Fair Labors Standards Act (FLSA):

Back 1

40-Hour Workweek; “Overtime” (must pay x1.5)
National Minimum Wage
Accurate Record-Keeping
Prohibits Child Labor

Front 2

How do you determine whether a job qualifies to be exempt?

Back 2

Salary test (Min $23,660)
Duties test (if it qualifies for exemption, must be 50% of the time)
In one of the exemption categories

Front 3

Exemption categories:

Back 3

Administrative
Executive
Outside sales
Professional

Front 4

Professional Exemption Categories:

Back 4

Learned
Creative
Computer

Front 5

Duties test:

Back 5

General exempt job duties that involve: (Generally 50% of the time)
Influence (Direction)
Decision-making (Discretion, Independent judgment)
Supervision

Front 6

Equal Pay Act:

Back 6

Women and men must be paid equally

Front 7

Age Discrimination in Employment Act (ADEA)

Back 7

Protects workers over 40 yrs old

Front 8

7 Different ways of how someone can be paid:

Back 8

Bonus/Incentives: tied to individual performance (i.e., accomplishing goals) and/or company performance/success
Commission: paid a percentage of sales
Hourly: paid for each hour worked
Traditional pay: Pay based on position held vs. performance
Salary: paid to get job done, regardless of hours
Pay-for-Performance: Merit-based; pay/increases based on performance
Piece Rate: paid for each “piece” created (e.g., manufacturing)

Front 9

Traditional pay:

Back 9

Based on position & seniority (not on performance)

Front 10

(FPF) Pay for Performance:

Back 10

Merit based pay system

Front 11

PFP key components:

Back 11

Org pay strategy (lag, match, lead)
Performance appraisal/review (performance documented)

Front 12

General Goal for Comp System:

Back 12

Motivate talent to join org
Motivate to perform at top level
Motivate to stay

Front 13

PFP Best Practices:

Back 13

Accountability
Aligned with org goals
Consistency
Management buy in/support

Front 14

Creating PFP System:

Back 14

Tools
When would you do this?
Who would do this?

Front 15

Creating PFP System: Tools

Back 15

Job description
Performance appraisal
Salary review info
Org salary strategy

Front 16

Creating PFP System: When would you do this?

Back 16

New company
Merger
Comp data outdated
Regular maintenance

Front 17

Creating PFP System: Who would do this?

Back 17

Work "teams"
Executive member
Line worker
Consultants

Front 18

Describe Pay compression/Min wage increases issue:

Back 18

When min wage catches up with current wages, where someone who just gets hired gets paid the same

Front 19

Pay satisfaction:

Back 19

Discrepancy between what employees believe they should be paid versus what actually paid

Front 20

Types of Raises in pay:

Back 20

Merit increases
Structured (traditional) (based in time worked)
Added responsibilities
Promotion
Market wage adjustment

Front 21

Compensation package includes:

Back 21

Wages
Benefits
Perks

Front 22

Benefits:

Back 22

Holiday
Vacation
Sick
PTO
Insurance (medical dental vision:
Medical: PPO vs HMO
Dental: PPO vs DMO

Front 23

Equity Theory:
What to do?

Back 23

How people feel about their wage compared to other people doing the same type of work in another company
What to do: Perform salary surveys

Front 24

Salary Survey Sources:

Back 24

Associations
Consultants
Government
Internet
Traditional

Front 25

Equity Theory: Internal
What to do?

Back 25

If someone in the same company is doing a similar job and being paid more
What to do: Perform job evaluation to determine worth of a job

Front 26

Job evaluation: 3 Types

Back 26

Ranking
Classification
Point-factor

Front 27

Job evaluation: Ranking: 3 Types

Back 27

Simple Ranking
Alternation Ranking
Paired Comparison

Front 28

Job Evaluation: Ranking: Simple Ranking

Back 28

Create a list of most important job to least important

Front 29

Job Evaluation: Ranking: Alternation

Back 29

Focuses on extremes (most/least important)…10 vs. 1, 9 vs. 2, 8 vs. 3, etc.

Front 30

Job Evaluation: Ranking: Paired Comparison

Back 30

Pair each job to every other job and determine importance within each possible pair; jobs determined most important most frequently, are deemed highest ranked. Matrix of job pairs

Front 31

Job Evaluation: Classfication

Back 31

Jobs are grouped into similar families or “grades” based on the work performed
(Executive, Managerial, Administrative)

Front 32

Job Evaluation: Point-Factor

Back 32

Establishes worth of each job relative to all other jobs

Front 33

Pay scales: key components

Back 33

Job evaluation data ("worth")
Survey $$ info
Org compensation strategy
Intangibles (candidate pool, liability, task specificity)

Front 34

Pay scales

Back 34

Pay reference (min, mid, max)
Pay flexibility
Overlap (how close in worth the jobs are, no overlap = much bigger difference)
Spread (difference between min and max)

Front 35

Broad – Banding:

Back 35

Typical salary band has a 40 percent difference in pay between its minimum and maximum, broad banding would have a 100 percent difference

Front 36

What is the overall HR Strategy with Reward Systems?

Back 36

“Employer of Choice”, Benefits:
Attracting and retaining top talent
Lower turnover
Customer satisfaction
High morale
Fair/Equitable Compensation

Front 37

Attrition:

Back 37

Reduction in the number of employees through retirement, resignation or death

Front 38

Incentives

Back 38

Variable pay
Bonuses

Front 39

Paycheck Deductions: 2 Types and Examples of Each

Back 39

Mandatory:
Taxes
Voluntary
401 Contributions

Front 40

Accounting Basics:

Back 40

Revenues – Expenses = Profits

Front 41

Labor costs:

Back 41

Total Hours Worked (all ee’s) * (ave cash comp + ave benefits’ cost (30% of salary)) = Labor Costs

Front 42

Turnover:

Back 42

The rate at which an organization gains or loses employees; presented as a %:
Month’s Terms
Month’s Starting Workforce