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160 Cards in this Set

  • Front
  • Back

What are the five components of total rewards?

1. Compensation (money)

2. Benefits (bonuses, vacations)

3. Work-life programs (childcare, gym classes)

4. Performance and recognition (Pay-for-performance, commission)

5. Development opportunities (pay for school, textbooks, etc)

What are some basic considerations in determining pay rates?

- Legal/labour standards (Pay equity, human rights, canada/quebec pension plan, worker's compensation, employment insurance)

- Union: collective bargaining

- Compensation policies

- Equity: Internal or external

What are the 5 steps for establishing pay rates? Briefly describe them

1. Conduct job evaluation

2. Group similar jobs into pay grades

3. Conduct salary survey

4. Price each pay grade using wage curves

5. Fine-tune pay rates

Which step in pay rates determines internal equity?

Job evaluation

Which step in pay rates determines external equity?

Salary survey

Give a brief explanation of a job evaluation

A systematic comparison of jobs to determine their relative worth

What is a benchmark job?

A job commonly found in organizations, and is critical to firm's operations (accountant, software developer, teacher)

What is a compensable factor?

A fundamental aspect of a job (Ex. Skill, effort, working conditions, responsibility)

What are the four job evaluation methods?

Ranking method

Classification/grading method

Point method

Factor comparison method

What are the five ranking method steps?

1. Obtain job information

2. Group jobs to be rated

3. Select compensable factors

4. Rank jobs

5. Combine ratings

Describe the classification/grading method

- Categorize jobs into classes or grades

- Classes contain similar jobs

- Grades contain dissimilar jobs of equal difficulty

What is the difference between classes and grades?

Classes contain similar jobs, while grades contain dissimilar jobs of equal difficulty

Describe the Point Method

-Identify compensable factors, and determine the degree to which each factor is present in each job

What are the seven point method steps?

1. Determine clusters of jobs to be evaluated

2. Collect job information

3. Select and define compensable factors

4. Define factor degrees

5. Determine factor weights

6. Assign point values to factors and degrees

7. Write the job evaluation manual

Describe the factor comparison method

- Rank jobs according to skill/difficulty factors

- Sum rankings for overall numerical ranking for each job

- Incorporate wage rates

What is a pay grade and how could it be sorted in the different methods?

Jobs of approximately equal value

Point: Range of points

Ranking: All jobs within 2-3 ranks

Classification: Jobs in same classes/grades

Factor comparison: Specified range of pay rates

Who is a salary survey conducted by?

The employer

Explain how to price each pay grade

- Find average pay for each pay grade

- Plot pay rates for each pay grade

- Fit a wage line through points (regression)

Price jobs

What is the red circle pay rate?

Rate of pay that is above the pay range maximum

What are competencies?

Individual knowledge, skills, and behaviours that are critical to successful individual or corporate performance

What are some perks of managerial and professional jobs?

Salary, benefits, short/long-term incentives, perquisites

How does pay equity intend to work?

Eliminate systematic pay discrimination by providing equal pay to both male and female dominated job classes

Why can't pay equity eliminate the wage gap?

Systematic discrimination

What is variable pay?

A plan that links pay productivity, profitability, or some other measure of organizational performance

List the four types of incentive plans

Individual incentive programs

Group incentive programs

Profit sharing plans

Gainsharing plans

Describe an individual incentive program

A program with spontaneous awards for an individual's accomplishments

Describe a group incentive program

Production standard is set for a specific work group, and members are paid if the group exceeds the set standard

Describe a profit sharing plan

An organization-wide incentive program offering employees with a share of the organization's profits in a specific period

Describe a gainsharing plan

An organization-wide plan designed to reward employees for improvement in organizational productivity

Describe the 3 incentive plans for operations employees (describe pros and cons of each)

Piecework plans

Standard hour plan

Team/group incentive plan

What are three eligibility points to consider for an annual bonus?

Key position, salary level cutoff point, salary grade

List the 7 long-term incentives for senior employees

1. Stock options

2. Book value plan

3. Stock appreciation rights

4. Performance achievement plan

5. Restricted stock plans

6. Phantom stock plans

7. Performance plans

What are the 3 factors that inspire salespeople to have different incentives?

Tradition, unsupervised nature of work, incentives needed to motivate

Briefly describe the different incentive plans for salespeople

Salary plan (Fixed salary, occasional bonuses)

Commission Plan (Pay in direct proportion to sales)

Combination plan (Salary + Commission)

Describe merit pay

- A salary increase awarded to an employee based on individual performance

- Effectiveness is based on the validity of the performance appraisal system

- Sometimes paid as a lump sum without changing the base salary

- Different than a bonus

What are some other incentives for professional employees?

- Incentives based on results longer than one year

- New equipment and facilities

- Supportive management lifestyle

- Support for research publications

Describe a profit-sharing plan

A plan whereby most/all employees share in the company's profits. Different types: Cash plans, deferred profit sharing, or both

Pros: Easy to administer, broad appeal to employees

Cons: Found only to produce a one-time productivity improvement, annual payout not as effective as more frequent payouts

Describe a share/stock purchase ownership plan

A trust is established to hold shares of company stock purchased for or issued to employees. The trust distributes the stock to employees on retirement, separation from service, or what is stated in the plan

- Can encourage employees to develop a sense of ownership to the firm

Describe a scanlon plan

Employees share in any extra profits resulting from their cost-cutting suggestions. It divides the payroll expenses by total sales.

- Designed to encourage cooperation, involvement and sharing of benefits

Describe a gain-sharing plan

Same as the scanlon plan, but uses payroll divided by the sales minus materials and supplies

When should incentives be used?

- Units of output can be measured

- Clear relationship between employee effort and quantity of output

- Standardized job, regular workflow with few/consistent delays

- Quality is less important than quantity

What are the principles for effective implementation of incentives?

- Pay for performance

- Link incentives to career development and challenging opportunities

- Link incentives to measurable competencies

- Match incentives to the culture of the organization

- Keep group incentives clear and simple

- Over-communicate

What is the #1 cause of employee turnover?

Lack of recognition and praise

Describe the key points of benefits


Improves employee attitudes and productivity

Important communication tool

What are benefits?

Indirect financial payments used to reward loyalty and tenure

List the government sponsored benefits

- Employment insurance

- Canada/Quebec Pension Plan

- Worker's compensation

- Vacations and holidays

- Leaves of absence

- Pay on termination of employment

Describe employment insurance

Income benefits for individuals unable to work through no fault of their own

Describe the Canada/Quebec Pension Plan

Retirement income, survivor or death benefits, and disability benefits to individuals who contribute to these plans

Describe worker's compensation

Income and medical benefits to victims of work-related accidents and illness, regardless of fault

Where are the rules for vacations and holidays specified?

Employment standards legislation

List the 4 popular reasons for leaves of absence

Maternity leave

Paternity leave

Bereavement leave

Compassionate care leave

What are some key points for pay on termination of employment

- Specified in employment standards legislation

- Pay in lieu of notice

- Severance pay

- Pay for mass layoffs

List the voluntary employer-sponsored benefits

- Life insurance

- Supplementary health care/medial insurance

- Short-term disability/sick leave

- Long term disability

- Additional leaves of advance

- Additional paid vacations and holidays

- Retirement benefits

What are some forms of life insurance?

- Group life insurance

- Accidental death and dismemberment insurance

- Critical illness insurance

For health care/medical insurance, what is a deductible?

Annual amount of expense paid by employee before insurance benefits will be paid

What is coinsurance?

Percentage of expenses in excess of the deductible paid for by the insurance plan

What are some ways to reduce health benefit costs?

- Increase amount paid by employees

- Public a restricted list of drugs covered

- Offer health promotion programs

- Implement risk assessment programs

- Health services spending accounts

List the key points of short-term disability/sick leave

- Pay for employees who are unable to work due to non-work related illness or injury

- Short-term disability plans pay during entire absence (often at declining percentages of salary)

- Sick leave plans pay for a specified # of days only

What is long-term disability?

Pay for employees with non-work-related long-term illness or injury (unless retirement is necessary)

What is disability management?

A program to assist disabled employees with return to work (ex. reduced work hours/duties, workstation modification)

List some traits of depression




Physical illness

Lost productivity

What are the two types of pension plans?

Defined benefit pension plan: Contains a formula for determining retirement benefits

Defined contribution pension plan: Employer's contribution to the employees' retirement fund is specified

Who contributes to an RRSP?

The employee

Who contributes to a DPSP?

The employer

The company profits credited to employee's account are payable at retirement, termination or death

What are some pension planning issues?

- Membership requirements

- Benefit formula

- Retirement age

- Funding

- Vesting

- Portability

What are recent trends of retirement plans?

- Rapid growth of defined contribution plans

- Phased retirement

- Supplemental employee retirement plans

What is an SERP?

Supplemental employee retirement plans - Plans that provide additional pension benefit required for employees to receive their full pension benefit

What are three personal employee services?

Credit unions

Counselling services

Employee assistance prorams

What are five job-related employee services?

- Subsidized childcare

- Eldercare

- Subsidized employee transportation

- Food services

- Educational subsidies

- Family-friendly benefits

What are some executive perks?

- Loans

- Golden parachutes

- Financial counselling

- Company relocation benefits

- Limousines

- Executive dining room

- Concierge service

What are the pros and cons of flexible benefit programs?

Pros: Choose benefits to suit individual needs, meet changing needs of workforce, introduction of new benefits is less costly

Cons: Employees choose wrong plans, increased admin cost, adverse selection

What is a golden parachute?

Their salary is protected if the company is a target of acquisition or merger

Describe occupational health and safety legislation

Laws intended to protect the health and safety of workers by minimizing work-related accidents and illnesses

What are the three categories of health and safety rules?

1. General health and safety

2. Specific industries

3. Specific hazards

What are the 3 main H&S rights an employee has?

1. Right to know about hazards

2. Right to participate in H&S process

3. Right to refuse unsafe work if they have reasonable cause

What are 3 other occupational H&S legislation requirements?

Joint health and safety committees

Health and safety inspectors

Control of toxic substances

What is WHMIS?

Workplace hazardous materials information system - Canada wide legally mandated system designed to protect workers by providing info about hazardous materials in the workplace

What are the 3 main ways WHMIS protects employees?

1. Labeling of hazardous materials

2. Material safety data sheets - outlines hazardous ingredients and procedures for safe handling

3. Employee training

What is the supervisor's role in safety?

- Legislation imposes personal duty on supervisors to ensure safety

- Need to get workers to want to work safely

- Safety commitment begins with top management

What are the three basic causes of accidents?

1. Chance occurrences (Beyond control)

2. Unsafe conditions

3. Unsafe acts (By employees)

List some unsafe conditions

- Improperly guarded equipment

- Defective equipment

- Hazardous procedures

- Unsafe storage

- Improper illumination

- Improper ventiliation

What are 3 less frequent accident factors?

- Some jobs are more dangerous than others

- Work schedule (fatigue)

- Psychological climate (stress)

What are some unsafe acts?

- Throwing materials

- Operating/working at unsafe speeds

- Rendering safety devices inoperative

- Using unsafe equipment/procedures

- Improper lifting

- Horseplay

What are some personal characteristics of unsafe acts?

- Poor vision

- Age (16-28)

- Difference in perceptual vs. motor skill

What are the two best ways to prevent accidents?

Reduce unsafe conditions, and reduce unsafe acts

How can you reduce unsafe acts?

- Selection and placement

- Training and education

- Positive reinforcement

- Top-management commitment

- Monitoring work overload & stress

How can you control workers' compensation costs?

Before: Take accident prevention measures

After: Ensure medical attention, be supportive & keep in touch, facilitate return to work

Describe key points about employee wellness programs

- Stress management

- Nutrition/weight management

- Smoking programs

- Heart health

- Physical fitness

- Ergonomics

What are some occupational health issues and challenges?

- Substance abuse

- Job stress

- Repetitive strain injuries

- Workplace toxins

- Workplace smoking

- Violence at work

Where is substance abuse most common?


What are the 3 guideline rules for supervisors dealing with substance abuse?

- Monitor employee behaviour

- Keep a written record of behaviour

- Refer employees to EAP

What are the 4 traditional techniques for dealing with substance abuse?

- In house counselling (EAP)

- Referral to outside agency (AA)

- Discipline

- Discharge

What are the 3 steps to determine if substance abuse testing is legal?

1. Test is rationally connected to performance of the job

2. Test is adopted in honest and good-faith belief that it is necessary for the fulfillment of work-related purpose

3. Test is reasonably necessary to the accomplishment of the work-related purpose

What are 3 things employers can do that are legal regarding substance abuse?

1. Forbid drugs/alcohol in the workplace

2. Require random drug testing only for "safety sensitive jobs"

3. Require mandatory drug testing "for cause" or "post-incident" in certain circumstances

What are environmental causes of job stress?

- Work schedule

- Pace of work

- Lack of job security

What are personal causes of job stress?

- Type A personality

- Work/family conflict

- Family problems

What are 5 things that can be done to reduce job stress?

- Supervisory monitoring

- Job transfer

- EAP counselling

- Fair treatment

- Control over one's job

What is burnout and how is it caused?

Total depletion of physical and mental resources

Caused by excessive striving to meet unrealistic goals

What are 5 things you can do to avoid burnout?

- Break patterns

- Get away from it all periodically

- Reassess goals

- Think about work

- Reduce stress

Where does violence at work mostly arise from?

Customers or strangers rather than co-workers, common in health care or retail

What are 5 things that can be done to prevent workplace violence?

- Institute workplace violence policy

- Identify jobs with high risk of violence

- Heighten security measures

- Improve employee screening

- Provide workplace violence training

What are job characteristics that increase the risk of workplace violence?

1. Being responsible for the care of others

2. Making decisions that influence other people's lives

3. Denying a service or request

4. Working alone

5. Handing valuables, guns, drugs, etc.

6. Supervising/disciplining others

7. Interacting with frustrated individuals

8. Working in client's homes

9. Having contact with individuals under the influence of alcohol, illegal drugs, or medication

What is labour-management relations?

Ongoing interactions between labour unions and management

What is a labour union?

An officially recognized association of employees in a similar trade, employed in the same company/industry

What is the union acceptance strategy?

View unions as legitimate representative of firm's employees

What is union substitution?

Employers are so responsive to employee's needs that they have no reason to unionize

What is union suppression?

Desire to avoid a union at all costs

What are the two main objectives of Canada's labour laws?

1. To provide a common set of rules for fair negotiations

2. To ensure protection of the public interest by preventing the impact of labour disputes from inconveniencing the public

What is the ratio of labour management relations for provincial vs. federal?


What are the 7 common characteristics of labour legislation?

1. Certification procedures

2. Minimum one year collective agreements

3. Procedures preceeding legal strike/lockout

4. No strikes/lockouts during life of contract

5. Interpretation disputes settle by binding arbitration

6. Prohibition of unfair labour practices

7. Labour relations boards to enforce legislation

What are the 3 types of unions?

Craft union: Workers practicing the same trade

Industrial union: Workers in the same industry

Associations/Public Sector Unions

What are the 3 geographic scopes of unions?

International, national, and local

What are the 3 central organizations of labour congress affiliation?

1. Canadian labour congress (CLC)

2. Confederation des Syndicats Nationaux (CSN)

3. American federation of labour - Congress of Industrial Organizations (AFL-CIO)

What are the 3 current challenges of labour movements?

1. Global competition and technological change (work sent offshore, shrinking unions)

2. Privatization and unionization of white-collar employees

3. Innovative workplace practices

What are the 5 steps of the labour relations process?

1. Employees seek collective representation

2. Union organizing campaign begins

3. Official recognition of the union

4. Collective bargaining

5. Day to day contract administration begins

What are some of the reasons unions are desired?

- Job dissatisfaction

- Lack of job security

- Perceived inequities in pay

- Unfair administration of policies

- Lack of opportunity for advancement

- Lack of influence on work-related decisions

- Belief that unions can improve working conditions

What are four tactics employers use to oppose unionization?

- Stress favourable employer-employee relationship experienced without a union

- Emphasize current advantages in wages, benefits, or working conditions the employee may enjoy

- Emphasize unfavourable aspects of unions: Strikes, union dues

- Initiate legal action when union members and leaders engage in unfair labour policies

What are the 5 steps of the union organization process?

1. Employee-union contract

2. Initial organization meeting

3. Formation of in-house committee

4. Organizing campaign

5. Outcome / Issue of certificate and election of committee

What is a standard employer's response to an organizing union? (4 main steps)

- Express views on unions

- State position on remaining non-union

- Prohibit union activity on copany property/time

- Increase wages in normal course of business

- Gather employees to state company's position

When do you hold a pre-hearing vote for union recognition?

If there is evidence of irregularities

What is collective bargaining?

A process by which a formal collective agreement is established between labour and management

What are the three steps for collective bargaining?

1. Preparation (gather data, form bargaining terms)

1.5 Develop strategies (develop management proposals and limits of conecssions, consider opponent's goals, make strike plans)

2. Face-to-face negotiations (Bargain in good faith, analyze & resolve proposals, stay within bargaining zone)

3. Obtaining approval for proposed contract

What are some other steps in preparing for negotiations?

- Gather economic data

- Analyze other collective agreements

- Audit/analysis of grievances

- Review existing contract/union promises

- Conduct wage/benefit surveys, prepare costing

- Contingency planning

Management: Obtain input from supervisors

Union: Obtain company financial info, input from union stewards and members, gather demographic data on members

What are some popular negotiation influences? (6 total)

- Bargaining history between parties

- Laws and administrative rulings

- Other negotiated outcomes

- Public opinion

- Personalities of negotiators

- Economic influences

What is distributive bargaining and integrative bargaining?

Distributive: win-lose approach

Integrative: Win-win approach

- Interest-based/mutual gains takes interests of ALL stakeholders into account

What is the memorandum of agreement?

Summary of terms and conditions agreed to by negotiators that is submitted to management and union membership for approval

What is ratification?

A secret ballot, a formal approval of agreement by union members

What is the difference between conciliation and mediation?

They are both assistance by a neutral outside third party. However, conciliation is required prior to a strike, and mediation is usually voluntary

What are the 3 bargaining impasses in negotiation?

1. Strikes (union action)

2. Lockout (management action

3. Interest arbitration

What is usually found in a collective agreement? (5 points

- Union recognition

- Union security/checkoff

- No strikes or lockout

- Arbitration

- Management rights (areas in which management may exercise rights without agreement from union

What does progressive clauses cover? (6 items)

- Employee access to records

- Limitations on use of performance evaluation

- Elder care leave

- Flexible medical spending accounts

- Protection against hazards of technology equipment

- Limitations against electronic monitoring

List the four types of "shops"

Closed shop

Union shop

Modified union shop

Open shop

What is a closed shop?

Only union members in good standing can be hired by employer to perform bargaining unit work

What is the difference between a union shop and a modified union shop?

In a union shop, you must join the union once you are hired. In a modified union shop, you do not need to join once you are hired, but you must pay dues.

What is an open shop?

The union membership is voluntary and nonmembers are not required to pay dues

What is maintenance of membership?

If you voluntarily join a union, you must remain a member for the entire contract

What is the Rand formula?

a workplace situation where the payment of trade union dues is mandatory regardless of the worker's union status

What are the four stages of a typical grievance procedure?

Stage 1: Employee gives written grievance to supervisor

Stage 2: Discussion by grievor, HR, union steward

Stage 4: Discussion by senior management and top union officials

Stage 4: Rights arbitration: Arbitrator gives decision

What is compulsory binding arbitration?

A process for employees where strikes cannot be tolerated to reach agreement (Police, firefighters, etc)

What is the final-offer arbitration?

The arbitrator must select one of the final offers submitted by the disputing parties.

The offer likely to be chosen is the one whose final bargaining offer has moved the closest towards a reasonable settlement

What are the 4 steps of an arbitration process?

1. The arbitrator declares the hearing open and obtains the submission agreement

2. Parties present opening statements

3. Each side presents its case

4. Parties make closing statements

What are the four factors arbitrators use to decide cases?

1. The wording of the collective agreement

2. The submission agreement

3. ????????

4. profit

What are the top three most important business functions in executing global strategy?

1. Sales

2. Customer service

3. HR

What are the three global HR challenges?

- Deployment of skill where needed

- Spreading knowledge throughout organization

- Identifying and developing talent on a global basis

What are the practical issues for global employees? (6 items)

- Candidate identification, assessment, selection

- Global assignment cost projections

- Specific assignment letters (A contract)

- Compensation, benefits, and tax programs

- Relocation assistance

- Family support

What are some main inter-country differences that affect HRM? (6 items)

- Culture

- Economic systems

- Labour cost

- Industrial Relations

- The European union

- Expatriate selection process

What are the four sources of managers for international staffing?

locals: citizen of country where working

expatriates: non-citizen

home-country nationals: citizens of home/parent country

third-country nationals: non-citizen of parent or host country

What is the difference between ethnocentric, polycentric, and geocentric? (International staffing)

ethnocentric: home country management style superior to host country - we know best

polycentric: host country management style most appropriate for host country: they know best

geocentric: best managers may be found anywhere - just get the best

What are the five important factors for international assignee success?

- Job knowledge and motivation (managerial and organizational ability and creativity)

- Relational skills (Respect, courtesy)

- Flexibility (Emotional stability)

- Extra-cultural openness (ex. interest in foreign countries)

- Family situation (children, partner/marriage stability)

How can you focus on maintaining global employees? (8 ways)

- Orientation and training

- International compensation balance sheet

- Incentives

- International EAPs

- Performance appraisal

- International labour relations

- Safety and fair treatment

- Repatriation (bringing 'em back)

Describe orientation and training

- Raise awareness of cultural differences and their impact- Understand our attitudes and their effects on our behaviour- Factual knowledge about target country- Language skills, adjustment and adaptation

Describe the international compensation balance sheet approach

- Maintain same standard of living as home

- Base salary

- Overseas/foreign service premium

- Allowances (Housing, education)

What are incentives for maintaining international employees?

- Not stock-based as currency fluctuations may impact stock price more than managerial action

- Tied to performance of foreign subsidiary

- Builds a sense of ownership among local managers

- Attracts and retains overseas managers

How do international EAPs help maintain international employees?

- Help with stress of relocation

Reactions to culture shock include:

- Homesickness

- Boredom

- Depression

-Family tension/conflict

How can performance appraisal help with maintaining international employees?

- Stipulate difficult level of assignment

- Weight on-site managers' appraisal higher than home-sight manager

- Advice to home-country manager from former expatriate

- Modify performance criteria for overseas situation

How can international labour relations help maintain international employees?

- Locals are less autonomous

- Employer associations negotiate (overseas employers get together like unions do here)

- Union recognition and security is less formal

- Grievances and strikes are less frequent

- Less gov't regulation, more direct intervention

- More worker participation

How can safety and fair treatment help maintain international employees?

- Kidnap and ransom insurance

- Security systems

- Vary departure and arrival times for work

- Project confident body language (NYC)

How can you effectively use repatriation for bringing international employees back?

- Write repatriation agreements

- Assign a sponsor / mentor

- Provide career counselling

- Keep communication open

- Offer financial support

- Develop reorientation programs

- Build in return trips

What are some key points on global HR systems?

- Apply various international HR best practices

- To be globally acceptable

- To develop more effectively

- To implement more effectively