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study guide for MGMT 383

by: tess grogan

study guide for MGMT 383 Mgmt

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This 24 page Bundle was uploaded by tess grogan on Wednesday September 21, 2016. The Bundle belongs to Mgmt at University of Mississippi taught by Palar in Spring 2015. Since its upload, it has received 37 views. For similar materials see Human Resource Management in 383 at University of Mississippi.


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Date Created: 09/21/16
Mgmt  383 Wednesday,  May  4,  2016 6:25  PM 1. Sarbanes  Oxley   ○ It was passed in 2002 by Congress to make certain that publicly traded companies follow accounting controls that could reduce the likelihood of illegal behavior. ○ In this context Sarbanes Oxley biggest concern: executive compensation 2. How do managers deal with talent shortages ○ Effective method for talent shortages : outsourcing to a 3rd party 3. Equal Employment Opportunities make us make what kind of decisions? ○ Status blind decisions 4. Which  act  requires  federal  contractors  to  take  affirmative  action  and  employee   people  with  disabilities ○ Rehabilitation  act  of  197required  that  federal  contractors  take   affirmative  action  to  employ  disabled  workers   5. 5  characteristics  of  jobs  that  motivate  employees   Job  characteristics  model:  motivation,  performance  satisfaction   Which  of  the  following  is  true  of  managers'  influence  and  control  of   characteristics  ins  an  organization? Ans:  managers  can  influence  or  control  job  characteristics,  but   usually  not  the  basic  characteristics  of  people   1. Skill  variety-­‐ is  the  extent  to  which  work  requires  several  activities  for   successful  completion   2. Task  identity-­‐is  the  extent  to  which  the  job  includes  a  "whole"  identifiable   unit  of  work  that  is  carried  out  from  start  to  finish  that  results  in  a  visible   outcome   3. Task  significance -­‐ is  the  impact  the  job  has  on  other  people   4. Autonomy-­‐the  extent  of  individual  freedom  and  discretion  in  the  work   and  its  scheduling   5. Feedback the  amount  of  information  employees  receive  about  how  well   or  how  poorly  they  have  performed 6. Difference  between  Job,  Task,  And  duty   ○ Jobus  a  grouping  of  tasks,  duties,  and  responsibilities  that  constitutes  the   total  work  assignment  for  an  employee and  its  scheduling   5. Feedback the  amount  of  information  employees  receive  about  how  well   or  how  poorly  they  have  performed 6. Difference  between  Job,  Task,  And  duty   ○ Jobus  a  grouping  of  tasks,  duties,  and  responsibilities  that  constitutes  the   total  work  assignment  for  an  employee ○ Task-­‐distinct  identifiable  work  activity  composed  or  motions   ○ Duty-­‐larger  work  segment  composed  of  several  tasks  that  are  performed   by  an  individual   7. Steps  in  the  job  analysis  process   1. Planning  the  job  analysis   2. Prepare  for  and  introduce  job  analysis   i. Identifying  jobs  and  methodologies   3. Conduct  the  job  analysis   i. Gathering  job  analysis  data   4. Develop  descriptions  and  job  specifications   i. Reviewing  drafts  with  managers  and  employees   5. Last  stage:  Maintaining  and  updating  job  descriptions  and  job   specifications i. Jack,  who  works  with  BluClu  LLC,  is  responsible  for  performing  the  job   analysis  in  his  organization.  He  has  introduced  and  communicated  the  job   analysis  process  to  all  his  managers.  Which  of  the  following  will  typically   be  Jack’s  next  step? ii. answer:  conducting  the  job  analysis   iii. Jill,  who  works  with  SunFun  LLC,  is  responsible  for  handling  the  job   analysis  in  her  organization.  She  has  developed  job  descriptions  and  job   specifications.  Which  of  the  following  will  typically  be  Jill’s  next  step? iv. Answer:  Maintaing  and  updating  job  descriptions  and  specifications   v. Max,  who  works  with  HiFi  LLC,  is  responsible  for  managing  job  analysis  in   his  organization.  He  is  currently  planning  the  job  analysis.  Which  of  the   following  should  typically  be  Max’s  next  step? vi. Answer  :  preparing  for  and  introducing  the  job  analysis   vii. Dave,  who  works  with  GoPhone  LLC,  is  responsible  for  managing  job   analysis  in  his  organization.  He  is  currently  gathering  and  reviewing  data.   Which  of  the  following  should  typically  be  Dave’s  next  step? viii. Answer:  developing  descriptions  and  job  specifications   8. Example  of  hygiene  factor  related  to  motivation: ○ Hertzberg's  two  factor  motivation  theory   § Hygiene  factors :salary,  working  condition,  interpersonal relations,   company  policy  ,  administration,  supervision 9. Types  of  turnover   ○ Voluntary-­‐employees  leave  by  choice   § Ex  from  tb:  Gerald  gets  passed  over  for  promotion  twice  despite   being  good  at  his  job,  hence  he  decides  to  leave  the  organization   § Hygiene  factors :salary,  working  condition,  interpersonal relations,   company  policy  ,  administration,  supervision 9. Types  of  turnover   ○ Voluntary-­‐employees  leave  by  choice   § Ex  from  tb:  Gerald  gets  passed  over  for  promotion  twice  despite   being  good  at  his  job,  hence  he  decides  to  leave  the  organization   § A  software  firm  plans  to  reduce  the  number  of  talented  designers  in   its  workforce  who  their  jobs,  in  this  case  this  firm  seeks  to  focus  on   voluntary  turnover  among  employees   ○ Involuntary-­‐employees  are  terminated  for  poor  performance,  work  rule   violations,  through  layoffs § Ex:  Pauline  was  asked  to  leave  the  company  due  to  poor   performance  on  a  project  that  incurred  huge  losses  for  her  firm   § Mark  was  terminated  by  his  company  because  of  his  poor  client   relation  skills  that  resulted  in  a  major  client  leaving  the  firm  for  a   competitor     ○ Functional-­‐turnover  of  poor  performers-­‐positive  thing  for  organization   § Ex:  Alice,an efficientwaitressata moderately -priced family restaurant,consistentlygetsthe lowesttips fromcustomers. She announcesthatsheisquittingtotakeanotherjobatanewly -opened casino.Thisbestexemplifiesa(n)_____turnover.                    Functional § t/f:  functional  turnover  usually  proves  to  be  positive  for   organizations ○ Dysfunctiona-­‐ lkey  performers  and  individuals  leave  organization   § t/f:    A  major  reason  for  categorizing  an  employees  departure  as   functional  rather  than  dysfunctional  is  his/her  performance  level   ○ Uncontrollable  turnover -­‐employees  leave  for  reasons  the  company   cannot  control   ○ Controllable:  employees  leave  for  reasons  that  could  be  influenced  by   employers   10. How  to  calculate  turnover  rate   #  of  employees  to  leave  company  divided  by  #  of  employees  at  midpoint               ○ 50  employees  of  Glow  Corp.  quit  the  company  in  2012.  35  of  them  quit  on   their  own,  while  the  rest  were  asked  to  leave  by  the  company  due  to  poor   performance  on  the  job  and  high  absenteeism.  The  total  number  of   employees  in  the  corporation  was  270  in  January,  2012.  myeiar   employee  count  was  250,  and  the  number  became  220  at  the  end  of  the   year.  The  turnover  rate  at  Glow  Corp.  in  2012  was  _____.  20% At  Piaffe  Products  15  employees  had  quit  and  an  additional  10  were  fired   ○ for  poor  performance  in  the  year  during  2010.  -­‐year  employee   count  was  50  for  that  year.  Piaffe’s  turnover  rate  for  the  year  2010  was   _____.  4% 11. Difference  between  seperation  costs  and  replacement  costs   i. Separation  cost-­‐HR  staff  and  supervisory  time,  pay  rates  to  prevent   ○ At  Piaffe  Products  15  employees  had  quit  and  an  additional  10  were  fired   for  poor  performance  in  the  year  during  2010.  -­‐year  employee   count  was  50  for  that  year.  Piaffe’s  turnover  rate  for  the  year  2010  was   _____.  4% 11. Difference  between  seperation  costs  and  replacement  costs   i. Separation  cost-­‐HR  staff  and  supervisory  time,  pay  rates  to  prevent   separation,  exit  interview  time,  unemployment  expenses   ii. Replacement  cost   i. Which of the followingis a replacement cost that is causedby turnover in a company? Employee referral fees 12. If you use a recruitingfirm, butyoudon’twantto limityourfinalhiring decisionswhatshouldyoudo? Linda  is  the  director  of  HR  at  Colette  Value  Incpreparation  e  t-­‐a firm.  The  firm  faces  a  dearth  of  tax  preparers  every   year  when  the  tax  season  approaches.  Every  December,  Linda  outsources   a  bulk  of  the  recruiting  process  to  an  employment  agency  to  recruit   temporary  employees  before  the  tax  season  begins.  However,  she  wants   to  do  so  without  excessively  limiting  her  final  hiring  decisions.  Which  of   the  following  processes  of  recruitment  should  Linda  carry  out  first  hand?   Face  to  Face  interviews 13. difference  between  regular  employee,  independent  contractor,  and  temporary   employee Patricia,  an  outstanding  performer,  was  placed  at  Oliver  &  Co.  by  a   temporary  service  firm  for  two  months.  Patricia’s  manager   approaches  Oliver  &  Co.’s  HR  Director  with  the  request  that  she   wants  her  as  a  regular  employee.  Given  this  scenario,  which  of  the   following  statements  is  true?   Ans:The  temporary  agency  contract  requires  Oliver  &  Co.  to   pay  a  placement  fee  if  Patricia  is  hired  as  a  regular  employee.   In  which  of  the  following  situations  would  the  use  of temporary   workersbe  most  appropriate?   Ans:  A  tax  preparation  company  that  mostly  handles   individual  clients  and  has  few  business  clients.   Angela  is  a  self -­‐employed  graphic  artist.  She  is  usually  hired  by   companies  for  special  projects  that  lasts  from  a  week  to  six  months.   Angela  can  be  best  described  as  a(n):     Independent  contractor Which  of  the  following  is  a  defining  characteristic  of  regular  staffing?   Ans:It  uses  workers  who  are  traditional  employees   True/false:  Rules  of  the  U.S.  Internal  Revenue  Service  and  the  U.S.   Department  of  Labor  determine  which  workers  qualify  as  independent   contractors.   True   14. Best  criteria  for  analyzing  the  effectiveness  of  advertisements   ○ Performance  level  of  hired  applicants  generated  by  the  ad True/false:  Rules  of  the  U.S.  Internal  Revenue  Service  and  the  U.S.   Department  of  Labor  determine  which  workers  qualify  as  independent   contractors.   True   14. Best  criteria  for  analyzing  the  effectiveness  of  advertisements   ○ Performance  level  of  hired  applicants  generated  by  the  ad 15. Lack  of  person/job  fit  is  usually  due  to  what: ○ Mistakes  in  evaluating  the  persons  KSA's   ○ Mark  is  unhappy  with  his  new  job  as  a  first  line  supervisor  at  a  call  center.   Mark  finds  the  job  boring  and  longs  for  the  end  of  his  shift  every  day.  He   wants  to  apply  for  another  job  either  within  or  outside  the  organization.   This  is  an  example  of:   Ans:poor  person/job  fit 16. Difference  between  poor  person  job  fit,  poor  person/org  fit,  negligent  hiring   ○ Poor/person  job  fit-­‐is  match  from  poor  pairing  of  peoples  needs,   abilities,  interests,  and  expectations ○ Poor/person  organization  fit: lack  of  congruence  between  individual  and   organizational  factors,  important  from  a  values  perspective   ○ Voltra  Inc.  is  planning  to  fill  a  number  of  open-­‐level    entry professionals.  The  selection  process  is  quite  extensive  and  includes   several  levels  of  individual  interviews,  panel  interviews,  psychological   tests,  and  general  ability  tests.  Much  of  the  interview  time  is  spent  on  the   applicant’s  philosophy  of  life  and  work.  Voltra  is  highly  concerned  about:   person/organization  fit ○ Jill  graduated  with  an  MBA  during  a  severe  economic  recession.  She   accepted  a  job  as  a  trainer  for  a  major  national  bank.  Jill  was  one  of  the   top  candidates  when  she  was  hired  by  the  bank.  Three  months  into  her   job,  she  feels  that  the  individual  bank  customers  are  not  valued,  and  that   the  bank  engages  in  misleading  advertising.  This  is  an  example  of:  poor   person/organization  fit ○ Negligent  hiring: occurs  when  an  employer  fails  to  check  and  employees   background  and  then  the  employee  injures  someone  on  the  job   § The  main  legal  reason  for  performing  a  thorough  background  check   of  all  applicants  is:  to  protect  the  organization  against  charges  of   negligent  hiring.   § A  school  district  hired  a  school  bus  driver  without  conducting  a   multi-­‐state  criminal  background  check;  a  background  check  was   conducted  only  in  the  state  in  which  the  school  was  located.   Subsequently,  the  school  bus  driver  was  convicted  of  kidnapping   one  of  the  children  who  traveled  in  his  bus.  The  prosecution  in  the   case  revealed  that  the  driver  had  been  convicted  ten  years  ago  for  a   similar  case  in  another  state.  The  school  district  is  guilty  of:   negligent  hiring   17. In  the  context  of  selection  what  is   validity? ○ the  correlation  between  a  predictor  and  job  performance.   one  of  the  children  who  traveled  in  his  bus.  The  prosecution  in  the   case  revealed  that  the  driver  had  been  convicted  ten  years  ago  for  a   similar  case  in  another  state.  The  school  district  is  guilty  of:   negligent  hiring   17. In  the  context  of  selection  what  is   validity? ○ the  correlation  between  a  predictor  and  job  performance.   ○ Feature  of  validity  :  Concurrent  validity  studies  use  the  employer’s   existing  employees  to  test  whether  certain  predictors  are  tied  to   performance  levels.   18. What  is  the  difference  between  a  stress  interview,  non  directive  interview  and   behavioral  interview ○ Stress: § Gisela  has  just  finished  her  interview  with  the  managing  editor  of  a   large  city  newspaper.  She  is  shaken  and  upset  because  the  editor   talked  about  her  educational  background  in  an  insulting  tone.  He   also  pressured  her  to  answer  confusing  questions  without  allowing   her  time  to  collect  her  thoughts.  Given  this  scenario,  Gisela  most   likely  attended  a  _____  interview.   ○ Non  directive  : § Which  of  the  following  types  of  selection  interviews  is   unstructured  :  non  directive   § Anthony  was  interviewing  an  applicant  to  be  a  volunteer  docent   (instructor  and  tour  guide)  for  a  large  art  museum.  During  the   course  of  the  interview,  the  applicant  began  to  discuss  her  interest   in  introducing  young  children  to  great  works  of  art.  Anthony   followed  up  with  several  questions  about  how  young  children  react   to  art,  why  she  felt  early  exposure  to  art  was  important,  and  how   she  would  design  situations  for  children  to  experience  art.  Anthony   was  conducting  a  _____  interview.  Non  directive ○ Behavioral   • In  general,  the  more  structured  a  type  of  selection  interview,  the  more  likely  it   is  to  be  statistically  valid.   • True  false:  A  nondirective  interview  allows  the  interviewer  to  improvise  and   pursue  interesting  nonroutine  discussions.  Consequently,  the  nondirective   interview  is  more  likely  to  turn  up  critical  information  that  can  be  compared   across  applicants  than  a  prepared  list  of  questions.   ○ False  ,  that  would  be  an  unstructured  interview   • True/false:  Listening  responses  such  as  mirroring  and  echoing  may  backfire  for   managers  doing  job  interviews  because  these  responses  give  feedback  to  the   applicant.   ○ True   19. If  you  find  out  info  on  a  current  employee  that  has  potential  to  injure  of  harm   your  employees  but  you  choose  to  keep  them  anyways   • True/false:  Listening  responses  such  as  mirroring  and  echoing  may  backfire  for   managers  doing  job  interviews  because  these  responses  give  feedback  to  the   applicant.   ○ True   19. If  you  find  out  info  on  a  current  employee  that  has  potential  to  injure  of  harm   your  employees  but  you  choose  to  keep  them  anyways   ○ Angus  has  been  a  bus  driver  for  a  tour  bus  company  for  the  last  15  years   and  has  an  excellent  driving  record.  Last  year,  Angus  was  on  medical  leave   for  8  weeks  due  to  a  back  injury  which  has  left  him  in  chronic  pain.  If   Angus  has  an  accident  while  driving  one  of  the  tour  buses  because  of  the   effects  of  his  prescription  pain  medication  and  if  passengers  are  injured,   the  company  might  be  liable  for:    negligent  retention 20. In  what  point  of  selection  process  can  you  have  people  take  a  drug  test  or  get   information  about  their  health  status? Which  of  the  following  statements  is  true  about  medical  examinations   and  inquiries § Ans:A  company  may  require  applicants  to  take  a  drug  test  even   before  a  conditional  job  offer  has  been  made.   ○ Morgan,  the  best  candidate  for  the  position  of  director  of  marketing,  has   tested  positive  for  the  presence  of  illegal  drugs  in  a  hair  sample.  Given  this   scenario,  the  HR  manager  should:    Ask  morgan  to  submit  a  second  type  of   drug  test  to  another  laboratory   ○ The  ADA  prohibits  the  use  of  preemployment  medical  exams,  except  for   drug  tests,  until  a  job  has  been  conditionally  offered.   21. What  is  on  the  job  training Most  common  method  of  delivering  training  at  all  levels   ○ ○ Can  disrupt  regular  work  in  organization   ○ Flexible  and  relevant  to  what  employees  do   ○ Which  of  the  following  is  a  disadvantage  of-nhe-­‐job  training  (OJT)?   § Incorrect  information  from  the  supervisor  can  be  transferred  to  the   trainees.   ○ Dr.  Smith,  a  veterinarian,  has  hired  Carlos  as  an  assistant.  On  Carlos’s  first   day  at  work,  Dr.  Smith  shows  him  the  technique  of  holding  a  cat  for   vaccinations.  First,  Dr.  Smith  describes  the  technique,  and  then  he   practically  shows  the  process  of  vaccination.  Later  he  asks  Carlos  to  hold   the  cat  and  corrects  his  mistakes.  This  is  an  example  of:    on  the  job   training   ○ On-­‐the-­‐job  training  can  amount  to  no  training  if  the  trainers  simply  allow   the  trainees  to  learn  the  job  on  their  own.   22. Level  of  training  measures  : ○ Reaction  leve-­‐lcould  be  measured  and  gathered  by  having  an  employee   complete  a  survey  to  rate  value  of  training,  instructor,  etc   § In  her  evaluation  sheet,  Theresa,  a  trainer  in  a  company,  gets  very   high  ratings  in  the  areas  of  class  enjoyability  and  trainee  willingness   the  trainees  to  learn  the  job  on  their  own.   22. Level  of  training  measures  : ○ Reaction  leve-­‐lcould  be  measured  and  gathered  by  having  an  employee   complete  a  survey  to  rate  value  of  training,  instructor,  etc   § In  her  evaluation  sheet,  Theresa,  a  trainer  in  a  company,  gets  very   high  ratings  in  the  areas  of  class  enjoyability  and  trainee  willingness   to  take  the  program  again.  This  evaluation  best  exemplifies  a  _____   measure.  :reaction   § If  employees  view  e-­‐learning  tools  such  as  an  Internet  game  that   they  enjoy  playing  and  give  it  a  high  rate  for  value,  it  can  be   concluded  that  the  training  has  succeeded  at  the  reaction  level.   ○ Learning  level -­‐how  well  trainees  learned  facts,  ideas,  concepts,  theories,   attitudes § To  qualify  as -­‐preparer  for  a  seasonal  job  at  a  tax -­‐preparation   chain,  Martin  must  answer  written  questions  on  tax  terminology   covered  in  the-­‐learning  course  provided  by  the  company.  This   evaluation  best  exemplifies  a  _____  measure.  :  learning  level   ○ Behavior  leve-­‐lmeasuring  the  effect  of  training  on  job  performance  by   observing   § At  GetHelp  Inc.,  after  customer  service  representatives  complete   training,  their  phone  calls  are  monitored  to  determine  if  the  they   are  applying  the  lessons  about  gathering  pertinent  information   from  callers.  This  evaluation  best  exemplifies  a  _____  measure.  :   behavioral  level § Evaluating  training  at  the  behavioral  level  means  measuring  the   effect  of  training  on  job  performance  through  observing  job   performance.   23. What  impact  does  development  have  on  individual  careers? ○ Capabilities  learned  in  development  may  not  apply  to  the  employee’s   current  job.   ○ The  employee  is  likely  to  acquire  abilities  to  handle  a  variety  of   assignments  that  might  not  be  required  for  his  or  her  current  position.   ○ When  opportunities  for  promotion  are  scarce,  a  good  way  to  keep   employees  motivated  and  develop  their  talents  within  the  organization  is:   lateral  transfers ○ One  purpose  of  employee  development  is  to  help  employees  improve   skills  that  they  might  not  be  able  to  improve  in  their  ordinary  life   experiences.   24. Example  of  behavior  based  information? ○ Timeliness  of  response   ○ Menu  up-­‐selling  by  a  waiter  is  classified  as  behavior -­‐based  information.   25. Most  widely  used  means  of  rating  employees? ○ Supervisory  rating  of  subordinates   26. One  of  the  biases  managers  have  in  terms  of  comparing  2  persons  performance ○ Timeliness  of  response   ○ Menu  up-­‐selling  by  a  waiter  is  classified  as  behavior -­‐based  information.   25. Most  widely  used  means  of  rating  employees? ○ Supervisory  rating  of  subordinates   26. One  of  the  biases  managers  have  in  terms  of  comparing  2  persons  performance The  _____  is  the  tendency  to  rate  people  relative  to  one  another  rather   ○ than  against  performance  standards.  :  Contrast  error 27. First  step  in  administration  of  compensation  process ○ Compensation  philosophy   ○ Then  job  analysis  then  job  evaluation   28. Difference  between  a  pay  survey,  pay  grade,  analysis  and  scale ○ Pay  survey: § A  _____  is  a  report  based  on  research  of  compensation  rates  for   workers  performing  similar  jobs  in  other  organizations.  Pay  survey ○ Pay  grade: § are  used  to  group  individual  jobs  having  approximately  the  same   job  worth.   ○ Pay  scale   Broadbanding-­‐The  practice  of  using  fewer  pay  grades  with  much  broader   ranges  than  in  traditional  compensation  systems  is  called  broadbanding.   Combining  many  grades  into  these  broad  bands  is  designed  to  encourage   horizontal  movement  and  therefore  more  skill  acquisition.   ○ Market  pricing   The  _____  uses  external  pay  data  what  other  employers  pay  for   similar  jobs.   to  identify  the  relative  value  of  jobs  based  on  what  other  employers   pay  for  similar  jobs   ○ Green  circle-­‐paid  below  range ○ Red  circle  -­‐ paid  above  range   ○ Compression  -­‐It  is  frequently  a  result  of  labor  market  pay  levels  increasing   faster  than  current  employees’  pay  adjustments.   ○ The  Equal  Pay  Act  of prohibits  companies  from  using  different  wage   scales  for  men  and  women  performing  substantially  the  same  jobs.   29. How  to  calculate  wages  using  straight  piece  rate  system? ○ Multiplying  the  number  of  units  produced  by  the  piece  rate  for  one  unit ○ True/  false:Under  a  straight  pierate  system,  wages  are  determined  by   dividing  the  number  of  units  produced  by  the  piece  rate  for  one  unit.   § False!! NEW  MATERIAL   NEW  MATERIAL   Ch.  13 Benefit-­‐is  a  tangible  indirect  reward  provided  to  employee  or  group  of  employees  for   organizational  membership Can  be  viewed  constructively  as  a  tool  for    competitive  advantage   • USis  the  only  major  developed  country  thadtoes  not  guarantee    paid  sick  leave Most  developed  countries  are  far  more  likely  to  provide  compulsory  health  care  plans   regardless  of  employment  status Benefits  communication  and  employee's  satisfation  are  linked,  employees  are  actually   more  satisfied  with  an  employer  that  provides  fewer  benefits  but  does  a  better  job  at   explaning  them   Flexible  benefit  plan • Allows  employees  to  select  the  benefits  they  prefer  from  options  established  by   the  employer   • Disadvantage:  there  is  a  risk  that  employees  will  choose  an  inappropriate   benefits  package   • Increases  the  rate  of  adverse  selection   Adverse  selection   • A  situation  In  which  only  higher  risk  employees  choose  and  use  certain  benefits   under  a  flexible  benefits  plan  provided  by  the  employer   Cost  sharing  plans-­‐require  employees  to  pay  a  larger  proportion  of  their  health   benefit  costs   Legally  required  benefits   ○ Unemployment  compensation,  medical  plans,  social  security   ○ Workers  compensation: benefits  provided  to  persons  injured  on  the  job § Typically  fundeda  t  the  expense  of  the  employer § Workers  cannot  be  asked  to  make  financial  contributis nor   coverage  under  workers’  compensation  programs.   § An  employee  who  is  out  of  work  and  actively  looking  for   employment  canr  eceive  up  to  26  weeks  of  paythrough   unemployment  compensation.   □ During  times  of economic  hardship  government  extends  the   amount  of  weeksto  receive  unemployment  compensation   Voluntary  benefits ○ Pension  plans,  wellness  programs,  education  assistance,  dental   During  times  of  widespread  economic  hardship ○ Government  will  increase  the  number  of  weeks  in  which  workers  receive   unemployment  compensation   Voluntary  benefits ○ Pension  plans,  wellness  programs,  education  assistance,  dental   During  times  of  widespread  economic  hardship ○ Government  will  increase  the  number  of  weeks  in  which  workers  receive   unemployment  compensation   Retirement  plans   Vesting-­‐feature  of  retirement  plans  that  means  an  employee  has  a  benefit  that   cannot  be  taken  away.  If  an  employee  resigns  or  gets  terminated  before  ability   to  be  vested,  only  receive  their  funds  contributed Defined  benefit  retirement  pla -­amount  of  benefit  paid  at  retirement  is  pre   determined Common  in  unionized  companies   ○ If  a  company  cannot  pay,  The  PBGC  will  pay  the  retiree  benefits  from  the   solvency  fund.   Defined  contribution  plans Cash  balance-­‐ a  pension  plan  in  which  retirement  benefits  are  based  on  the   accumulation  of  annual  company  contributions  plus  interest  credited  each  year 401k Laws  regarding  retirement  plans • 1986  amendment  to  age  discrimination  in  employment  act  ADEA -­‐ most   employees  cannot  be  forced  to  retire  at  a  specific  age • Older  workers  benefit  protection  act  (OWBPA-­‐ )sets  forth  certain  conditions   that  must  be  met  when  older  workers  are  offered  early  retirement • Employee  Retirement  Income  Security  Act  (ERISAT )his  law  was  enacted  in   1974.  The  purpose  of  this  law  is  to  insure  that  private  pension  plans  meet   minimum  standards.   Controlling  health  care  costs   To  reduce  costs:  increasing  employee  contribution,  switching  to  consumer   driven  health  plans,  managed  care,  copayments   Managed  care-­‐typically  consists  of  approaches  that  monitor  and  reduce   medical  costs  through  restrictions  and  market  system  alternitives   PPOs  and  HMOs  most  common  types  of  managed  care   Consumer  driven  health  plan-­‐ an  employer  makes  contributions  to  help   employees  cover  the  health  related  expenses   COBRA-­‐ consolidated  omnibus  reconcialtion  act   • With  reguard  to  health  caremost  employers  with  20  or  more  employees  must   offer  extended  health  care  coverage  to  certain  groups  of  employees  after  they   leave  the  organization   • Divorced  spouses  and  dependent  children  of  former  or  current  employees   should  be  offered  extended  health  care  coverage  under  the  COBRA.   HIPPA-­‐Health  insurance  portability  and  accountability  act   • Allows  employees  to  switch  health  insurance  from  one  company  to  another  to   get  new  health  converage  regardless  of  preexisting  conditions leave  the  organization   • Divorced  spouses  and  dependent  children  of  former  or  current  employees   should  be  offered  extended  health  care  coverage  under  the  COBRA.   HIPPA-­‐Health  insurance  portability  and  accountability  act   • Allows  employees  to  switch  health  insurance  from  one  company  to  another  to   get  new  health  converage  regardless  of  preexisting  conditions • Federal  law  that  ensures  the  privacy  of  medical  records   Two  most  important  laws  passed  that  govern  issues  related  to  protection  of  former   employers  are  COBRA  and  HIPPA   Insurance  plans   • Group  programs -­‐ can  benefit  employee  even  when  employers  do  not  pay  any  of   the  cost  because  employees  are  offered  insurance  plans  at  lower  rates  through   group  programs • Long  term  disability  insuranc-­‐ etypically  provides  continuing  income  protection   for  employees  who  become  unable  to  work  because  they  are  disabled.   • Stock  purchase  plan-­‐can  buy  shares  in  the  company  at  a  discount   An  employee  would  have  limited  access  to  a  company’s  health  plan  if  the  employee’s   spouse  works  for  another  company  that  offers  health  insurance.   WARN  ACT-­‐ workers  adjustment  and  retraining  notification  act   • Does  not  mandate  severance  pay   Family  and  medical  leave  act-­‐ • Requires  that  employees  allow  eligible  employees  to  take  a  maximum  of  12   weeks  unpaid  leave  during  any  12  month  period   • Only  employees  who  have  worked  at  least  12  months  and  1,250  hours  in  the   previous  year  are  eligible  for  leave  under  the  FMLA.   • Eligible-­‐ The  covered  family -­‐related  events  include  birth,  adoption,  placement  of   a  foster  child  and  caring  for  a  spouse,  child,  or  parent  with  a  serious  health   condition.   Patient  protection  and  affordable  care  act Extends  dependent  coverage  up  to  26 Enrollment  in  health  care  coverage  is  mandatory  for  every  citizen Chapter  14  risk  management  and  worker  protection Indirect  costs  associated  with  accidents  in  the  workplace -­‐training  new  substitutes Immeasurable  costs -­‐negative  influence  on  employee  spirit   Self  employed  have  higher  risks  of  accidents  than  those  who  work  for  others  because More  likely  to  work  in  dangerous  industries  like  farming   Medium-­‐sized  companies  have  the  highest  reported  rates  of  workplace  injuries  and   illnesses.   Major  legal  requirements  for  safety  and  health • Workers  comp,  Americans  with  disability  act,  child  labor  laws   Workers  compensation   • Under  the  workers'  compensation  laws,  employers  need  to  contribute  to  an   insurance  fund  that  compensates  employees  for  injuries  while  received  on  the   illnesses.   Major  legal  requirements  for  safety  and  health • Workers  comp,  Americans  with  disability  act,  child  labor  laws   Workers  compensation   • Under  the  workers'  compensation  laws,  employers  need  to  contribute  to  an   insurance  fund  that  compensates  employees  for  injuries  while  received  on  the   job • Employers  typically  fund  in  privately  owned  company • Need  to  monitor  because  false  workers'  compensation  claims  can  cost   employers  billions  of  dollars  annually   • Light  duty  work -­‐employers  who  provide  injured  employees  with  light  duty  work   typically  give  them  less  physically  demanding  jobs  until  they  are  able  to  perform   their  jobs   Child  labor  laws-­‐fair  labor  standards  act   Minimum  age  for  most  employment  at  16  ,  except  manufacturing  and  mining  or   hazardous  jobs   Occupational  Safety  and  Health  Act  provides  several  standards  for  workplace  safety   and  health .   • OSHA  places  the  responsibility  on  the  employer  of  a  “general  duty”  to  provide   safe  and  healthy  working  conditions  even  in  areas  where  OSHA  standards  have   not  been  set.   • What  organizations  are  covered  under  OSHA? ○ All  employers  engaged  in  commerce  who  have  one  or  more  employees ○ Farmers  who  have  fewer  than  10  employees  are  exempt   ○ The  Occupational  Safety  and  Health  Review  Commission  (OSHRC)  has   been  established  to  address  disputes  between  OSHA  and  employers  that   have  been  cited  by  OSHA  inspectors.   ○ If  employees  are  provided  safety  training  in  English  by  a  construction   company  despite  knowing  that  some  of  the  employees  do  not  understand   English,  and  one  such  employee  is  injured  while  on  the  job,  the  company   is  guilty  of  violating  the  OSHA.   If  an  OSHA  compliance  officer  finds  a  condition  of  imminent  danger  in  a   ○ workplace,  the  officer  may  get  a  federal  court  injunction  to  close  the   company  untill  the  condition  is  rectified.   ○ Created  the  NIOSH  -­‐Workplace  standards  are  researched  and  developed   by  them • OSHA  enforcement  standards ○ General  duty -­‐employer  has  a  general  duty  to  provide  safe  and  healthy   working  conditions,  even  in  areas  where  OSHA  standards  have  not  been   set ○ Notification  and  posters -­‐employers  are  required  to  inform  their   employees  of  safety  and  health  standards  established  by  osha ○ The  OSHA  provides  guidelines  to  companies  that  help  them  continue   operations  with  a  depleted  workforce   working  conditions,  even  in  areas  where  OSHA  standards  have  not  been   set ○ Notification  and  posters -­‐employers  are  required  to  inform  their   employees  of  safety  and  health  standards  established  by  osha ○ The  OSHA  provides  guidelines  to  companies  that  help  them  continue   operations  with  a  depleted  workforce   ○ According  to  the  Civil  Rights  Act  and  Pregnancy  Discrimination  Act,   employers  should  not  prevent  people  from  working  in  hazardous  jobs   because  of  reproductive  concerns.   • Hazard  Communication ○ Process  safety  management(PSM)-­‐standards  that  require  employers   who  use  hazardous  chemicals  to  provide  information  about  hazardous   substances  to  employees   ○ Material  safety  data  sheet-­‐purpose  is  to  provide  employees  with   antidotes  to  be  taken  if  exposed  to  hazardous  materials   ○ Lockout/tag  out  regulation-­‐sto  prevent  the  accidental  start  up  of   defective  machinery  during  repair  or  adjustment   • Ergonomics-­‐is  the  study  and  design  of  the  work  environment  to  address  the   physiological  and  physical  demands  on  individuals • When  can  you  refuse  work  according  to  OSHA  standards: ○ The  workers  at  a  construction  site  are  refusing  to  work  saying  that  the   scaffolding  on  which  they  have  been  working  is  unsafe  and  that  their   management  has  been  avoiding  their  requests  for  a  safer  work   environment.  Is  their  refusal  to  work  justified?   § Yes,  because  according  to  the  OSHA,  workers  have  the  right  to   refuse  to  work  if  their  fear  is  objectively  reasonable   ○ Employees  fear  is  objectively  reasonable ○ The  employee  has  tried  to  have  the  dangerous  condition  corrected ○ Using  normal  procedures  to  solve  the  problem  has  not  worked   Reporting  injuries  and  illness  as  defined  by  OSHA   • Injury-­‐fatalities  at  workplaces  or  caused  by  work  related  actions  must  be   reported  within  8  hours   • Lost  time  or  disability  injuries   • Medical  care  injuries -­‐require  physician  but  do  not  cause  employee  to  make   work   • Minor  injuries-­‐first  aid   ○ Alex,  a  graphic  designer,  suffers  from  a  terrible  headache  while  at  work.   He  approaches  the  company  nurse,  who  gives  him  aspirins.  He  gets  back   to  work  in  an  hour  when  his  headache  subsides.  OSHA  would  categorize   Alex’s  illness  as  a(n):  minor  injury   OSHA  citations   • Imminent  danger-­‐reasonable  certainty  that  the  condition  will  cause  death  or   serious  harm  if  not  corrected  immediately   ○ If  an  OSHA  compliance  officer  finds  a  condition  of  imminent  danger  in  a   workplace,  the  officer  may  get  a  federal  court  injunction  to  close  the   Alex’s  illness  as  a(n):  minor  injury   OSHA  citations   • Imminent  danger-­‐reasonable  certainty  that  the  condition  will  cause  death  or   serious  harm  if  not  corrected  immediately   ○ If  an  OSHA  compliance  officer  finds  a  condition  of  imminent  danger  in  a   workplace,  the  officer  may  get  a  federal  court  injunction  to  close  the   company  until  the  condition  is  rectified.   • Serious:probably  could  cause  death  or  serious  physical  harm ○ Ex:  no  protective  screen  on  lathe  and  lack  of  blade  guard  on  electric  saw • De  Minimis -­‐one  not  directly  and  immediately  related  to  employees  safety  or   health ○ does  not  require  the  OSHA  compliance  officer  to  issue  a  citation.   • Other  than  serious-­‐According  to  OSHA,  having  loose  ropes  in  a  work  area  that   could  impact  employees’  health  or  safety  but  probably  would  not  cause  death   or  much  harm Managers  and  OSHA   • Typically  handled  byo  perating  manager:  Investigating  accidents   • acts  would  be  violated  if  a  majority  of  the  members  of  a  safety  committee  is   composed  of  managers?  Wagner  act   • An  employer  may  be  in  violation  of  the  National  Labor  Relations  Act  if:   managers  compose  a  majority  on  the  committee.   Approaches  to  effective  safety  management Organizational-­‐approach  to  safety  management  focuses  on  designing  jobs,   developing  and  implementing  safety  policies,  and  using  safety  committees.   Implementing  safety  policies   Engineering  approach -­‐designing  machines,  equipment,  and  work  areas  so  that   workers  who  perform  potentially  dangerous  jobs  cannot  injure  themselves  or  others   • Sam,  a  product  development  manager,  and  his  team  are  in  the  process  of   designing  ergonomic  desks  that  would  help  the  employees  in  their  organization   work  effectively  without  any  discomfort  or  physical  ailments.  Which  of  the   following  approaches  is  being  used  by  Sam’s  organization  for  safety   management?  Engineering  approach   testing   • US  department  of  health  and  human  services  cited:  -­‐ and  alcohol-­‐related   problems  should  not  be  discussed  without  the  presence  of  a  witness.   • Most  fitness-­‐for-­‐duty  test  failures  are  because  of:  fatigue  and  illness   • A  serious  drawback  of  most  drug  tests  is  that  they  show  impairment  of  abilities   even  when  the  impairment  is  caused  by  fatigue  or  illness  and  not  substance   abuse.   • Emotional  illnesses  such  as  schizophrenia  and  depression  are  considered   disabilities  under  the  ADA.   Americans  with  disabilities  act • Considered  disabled: ○ A  person  addicted  to  prescription  drug   abuse.   • Emotional  illnesses  such  as  schizophrenia  and  depression  are  considered   disabilities  under  the  ADA.   Americans  with  disabilities  act • Considered  disabled: ○ A  person  addicted  to  prescription  drug   ○ A  person  addicted  to  alcohol   ○ Recovering  substance  abusers  are  considered  disabled   Work  place  violence   • Bullying  can  result  in  damage  to  an  organization  due  to  increased  employee   turnover.   • Domestic  violence  can  harm  work  attitudes  and  put  the -leing  of   employees  in  jeopardy.   • Characteristic  of  potentially  violent  employees:  Involvement  in  telephone   harassment ○ Tendency  to  hold  obsessive  grudges   • Employers  can  be  sued  and  held  liable  if  they  ignore  the  pleas  for  help  from   employees  and  the  employees  later  become  victims  of  domestic  violence.   • Firms  that  do  not  screen  employees  adequately  can  be  subject  to  liability  if  an   employee  commits  crimes  later.   Security  audits   • Is  referred  to  as  vulnerability  analysis • Part  of  security  audit:  review  of  disaster  plans   • Typically  begins  with:  survey  of  the  area  around  the  company   • Often  the  difference  between  high-­‐performing  firms  with


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