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MGMT 3300 Final
management final OU
134
Management
Undergraduate 4
12/07/2015

Additional Management Flashcards

 


 

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Term
Compensation
Definition
refers to the monetary and non monetary rewards employees receive in exchange for the work they do for an organization
Term
Direct Compensation
Definition
the hourly wages and salaries paid to employees, as well as any incentives including merit raises and bonuses or commissions
Term
Indirect Compensation
Definition
The benefits and services employees receive, such as their health care, vacations, lunches, company paid training, etc.
Term
Total Rewards
Definition
the sum of all the aspects of a compensation package (base pay, incentives, benefits, perks, etc.) and to signal to employees that they are receiving more than just base pay
Term
Compensation Philosophy
Definition
Communicates information to employees about what is valued within the organization, enhances the likelihood of consistency in pay across the organizational units, and helps attract, motivate, and retain employees
Term
Goal Behind Total Rewards
Definition
to motivate employees by helping them understand everything they are receiving from the organization in exchange for the work they do
Term
Equity Theory
Definition
The theory that employees compare their input (work effort) and outcome (wages) levels with those of other people in similar situations to determine if they are being treated the same in terms of pay and other outcomes
Term
Internal Alignment
Definition
Occurs when each job in a company is valued appropriately relative to every other job in terms of its ability to help the firm achieve its goals
Term
Job Evaluation
Definition
The systematic process of establishing the relative worth of the jobs within the company
Term
Job Ranking
Definition
Type of job evaluation that involves reviewing job descriptions and listing the jobs in order, from highest to lowest worth to the company
Term
Job Classification
Definition
a type of job evaluation that involves developing broad descriptions for groups of jobs that are similar in terms of their tasks, duties responsibilities, and qualifications for the purpose of assigning wages
Term
Point Method
Definition
A quantitative method of job evaluation that involves assigning point values to jobs based on compensable factors to create the relative worth hierarchy for jobs in the company
Term
Compensable Factors
Definition
Aspects of jobs, such as skill, effort, responsibility, and working conditions that exist across jobs in a company, are needed by employees for the firm to achieve its objectives, and for which the company is willing to pay
Term
Benchmark jobs
Definition
jobs that are used to represent the range of jobs in a company and that can be used for comparison with jobs in other companies for the purpose of establishing pay rates.
Term
Job Grades
Definition
Grouping jobs with comparable points together to reflect hierarchy of jobs within a company for the purpose of establishing wage rates
Term
Factor Compnarison
Definition
A quantitative type of job evaluation that involves ranking benchmark jobs in relation to each other on several factors, such as mental requirements, physical requirements, skill, responsibility and working conditions, then assigning a portion of the hourly rate for each job to each factor
Term
External Competitiveness
Definition
ensuring pay rates for hobs in accompany are appropriately aligned relative to pay rates for similar his in the company external labor market
Term
Job Pricing
Definition
The systematic process of assigning monetary rates to jobs so that a firm's internal wages are aligned with the external wages in the marketplace. Used to develop pay policy
Term
Wage Curve
Definition
The market line that represents the relationship between the job evaluation points and the salaries paid for the jobs
Term
Broadbanding
Definition
Approach used to reduce the complexity of compensation system by consolidating a large number of pay grades into a fewer number of "broad" grades (or bands)
Term
Salary Surveys
Definition
A systematic process for collecting information about wages in the external labor market
Term
Pay Grades/Pay Ranges
Definition
Each grade has a range
-Minimum of range
-Midpoint of range
-Maximum of Range
Term
Skill-based pay and a knowledge-based pay
Definition
systems that require employees to acquire certain skills or knowledge in order to receive a pay increase
Term
Competency-based Pay
Definition
highly structured pay system that identifies the competencies employees need to master to be eligible for pay raises
Term
Market Pricing
Definition
A method for determining pay for jobs by collecting salary information from the external labor market first rather than starting with the development of an internal structure based on the value of the jobs within the company
Term
Reinforcement Theory
Definition
A theory in which people experience positive consequences after they do something, they are likely to repeat those actions
Term
Goal Setting Theory
Definition
Goals serve as a motivator to focus the efforts of employees when the goals are specific, challenging, and attainable
Term
Expectancy Theory
Definition
Employees make decisions regarding how to act at work based on which behaviors they believe will lead to their most valued rewards and outcomes
Term
Expectancy
Definition
The degree to which employees believe they will be able to achieve the objective
Term
Instrumentality
Definition
Employees believe that achieving the objective will be rewarded
Term
Valence
Definition
The degree of value employees place on different rewards
Term
Agency Theory
Definition
Managers can motivate their employers to act in certain ways by aligning their interests with the other interests of the firms other stakeholders
Term
Merit Pay Programs/Merit Pay Increase
Definition
Employees receive a compensation adjustment base on results of their performance evaluation
-- Permanently raises base salary and company's costs
--Rewards empl0yees for past performance
--Might appear insignificant when spread out over 52 paychecks
Term
Lump Sum Merit Bonuses
Definition
One time payment based on an employee's level of performance
Term
Straight Piecework Plan
Definition
An individual incentive plan in which employees receive a certain rate of pay for each unit they produce
Term
Differential Piecework Plan
Definition
An individual incentive plan in which the pay employees receive per unit produced or delivered changes at certain levels of output
Term
Piecework Incentive Plans
Definition
Reward employees for future performance
Term
Difficulty of Piecework Incentive Plans
Definition
1.Employees make focus only on aspects of the job that they get rewarded for
2. Some taks are difficult to measure
Term
Standard Hour Plan
Definition
Pay rate is set based on expected amount of time an employee needs to complete task
-- if employees exceed minimum, they will receive a premium for higher level of work
Term
Awards/Spot Awards
Definition
An incentive that companies used to encourage their employees to work towards specific outcomes
--Managers give awards "on the spot" when they see certain behaviors exhibited by employees
Term
Straight Commission Plan
Definition
Pays an employee a percentage of the total sales they generate
Term
Straight Salary Plans
Definition
Employees receive a set compensation, regardless of their level of sales (employees may not be as motivated to sell as much as they can)
Term
Mixed Salary/ Commission Plan
Definition
Employees receive a lower base salary (50%) and the remaining is commission based
Term
Team Incentive Plans
Definition
All members are rewarded when team reaches or exceeds its target objectives
--Potential for "free riders" who do not work as hard as others
Term
Gain Sharing Plans
Definition
Designed to help increase a company's efficiency by reading teams that exceed productivity levels with a share of the gains realized
Term
Scanlon Plan
Definition
Employees make suggestions for how to improve a firm's productivity and the gains of that efficiency are shared with employees
Term
Improshare Plan
Definition
a group based plan based on the number of hours a firm expects to take to reach a certain level of output
Term
Deferred Profit Sharing Plan
Definition
The incentive money paid to an employee is put into a retirement account for the person
Term
Profit Sharing Plans
Definition
Company profits are shared with employees
--encourages collaboration and teamwork
--paid only when a company is doing well
--may take a while for employee's efforts to translate into profits
Term
Stock Option Plans
Definition
provides employees the right to purchase shares of their company stock at some established price for period of time
Term
Broad-based Stock Option
Definition
Plans that apply widely to a firm;s employees
Term
Employee Stock Ownership Plan (ESOP)
Definition
Company contributes shares of its stock to a trust set up for its employees
Term
Leveraged ESOP
Definition
the trust borrows against the company's future earning and as debit is repaid, employees receive shares of stick from trust
Term
Mixed-Level Plans
Definition
Multiple plans are used simultaneously
--goal is to maximize the benefits of each plan and minimize the downsides of each
Term
Executive Compensation: Pay and Incentives
Definition
Executive compensation has similar components as other compensation packages but the levels and percentages that each make up of total compensation and more variable
Term
Common Components of Executive Compensation
Definition
1. Base Salary
2. Short and long term activities
3. benefits
4. services
Term
Making Incentive Plans Effective
Definition
1.Link plan to firms strategic objectives
2. Have clear standards- predetermined levels of performance
3. Sample the full performance domain- all aspects of the job
4. Be attainable
5. Be easy to understand
6. Provide meaningful incentives
7. Evaluate regularly
Term
Labor Market (Incentives)
Definition
1.Using incentives to increase diversity
2.Desirability of different rewards
Term
Technology (Incentives)
Definition
1. How incentives are managed
2. Incentive plans for virtual workforce
Term
Globalization (Incentives)
Definition
1. What is rewarded
2. Acceptability of different rewards
Term
Ethics (Incentives)
Definition
1. Ethical employee behavior
2. How employees and communities view executive incentive plans
Term
Regulatory Issues (Incentives)
Definition
1. Bias and discrimination
2. Stock option backdating
Term
Benefits and Safety Programs
Definition
1. Affect employee attitudes
2. Benefits focus on health and wellness
3. Safety programs important for employee and company well-being
Term
Mandatory Benefits
Definition
1. Social Security
2. Unemployment Insurance
3. Workers Compensation
4. Affordable Care Act Employer Shared Responsibility Provisions
Term
Social Security
Definition
1. Put into effect in 1937
2. Funded by employer and employee contributions to provide old age, survivors, disability, and death benefits
3. Goal: to hep individuals and address societal issues;
--supplement but not replace retirement or disability income
Term
Medicare
Definition
health insurance portion of Social Security for retirees 65 and older, and disabled workers
Term
Unemployment Insurance (UI) Program
Definition
1. Partnership between states and federal government
2. Created by Social Security Act
3. Provides temporary financial assistance when workers involuntarily lose their jobs
4. Tax rats determined by each state
Term
Workers Compensation Insurance
Definition
1. Provides cash benefits and medical care to workers with work-related injury or illness
2. Disability payments provided for workers with permanent disabilities
3. Employers pay insurance premiums and deductibles
Term
Affordable Care Act
Definition
Employers with 50 full time employees must offer affordable health coverage to those employees and their dependents OR be subject to Employer Shared Responsibility payment
Term
Affordable Care Act Coverage
Definition
1. Ended preexisting exclusions for children
2. Requires employer health plans to cover young adults up to age 26 on parents plan
3. End lifetime limits on coverage for all ew health insurance plans
4. Provides certain types of preventive care at no cost
5. Limits administrative costs by insurance companies
Term
Voluntary Benefits
Definition
Benefits that an employer chooses to offer its employees without being required to do so
--Health, wellness, and welfare
--Life management
--Retirement
Term
Health Maintenance Organization (HMOs)
Definition
a type of managed health insurance program that requires employees to designate a primary care physician and have any visits to a specialist referred by the primary doctor
Term
Preferred Provider Organizations (PPOs)
Definition
Care program in which the employer negotiates with health care providers, usually in a network, for discounts and services for healthcare coverage for employees
Term
Copay
Definition
Minimum amount of employees must pay for health care as determined by their health insurance plan
Term
Point-of-service Plan (POS)
Definition
hybrid of an HMO and PPO where individuals can also receive treatment outside the network but must pay a higher deductible
Term
Health Saving Account (HSA)
Definition
A special account established through employers, banks, credit unions, insurance companies, and other approved financial institutions into which an employee sets aside money pre-tax to help pay for his or her health care options
Term
Other Health Options
Definition
1. Self funded Plans
2. Prescription Drug Benefits
3. Vision and Dental Insurance
Term
Wellness Programs
Definition
1. Designed to keep employees healthy through education and incentives
2. Goal: reduce health care cost
3. Examples: Smoking cessation/weight loss/gym membership
4. May include health risk assessment
Term
Employee Assistance Programs (EAPs)
Definition
1.Designed to help employees deal with personal problems that reduce work productivity
2. May include attorney consultation, child-care and elder-care options, budget information, addiction recovery, family counseling
Term
Short-term Disability Plan
Definition
Insurance plan that pays a specified portion of an employee's salary wen the employee is out of work for a limited time due to a disability
Term
Long-term Disability (LTD)
Definition
Plan that typically starts a specified period of time from the time of a disability and pays a portion of the employe's salary until retirement age
Term
Accidental Death and Dismemberment Insurance (AD&D)
Definition
Designed to compensate employees for the loss of a body part or to compensate the employee's family is an employee suffers the loss of a limb or died accidentally at work
Term
Norris-LaGuardia Act of 1932
Definition
1. makes it easier for employees to engage in union-organizing activities
2. Allowed for hearings, granted collective bargaining, union is not responsible for unlawful acts committed by the workers unless instigated of approved from the union
Term
Wagner Act (National Labor Relations Act)
Definition
1. 1935
2. MOST IMPORTANT PIECE OF LABOR RELATIONS LEGISLATION
3. Protects the rights of employees and employers
4. Encourages them to collectively bargain
5. Controls their actions so that the economy won't be adversely affected by their actions
Term
Wagner Act gave employees ability to:
Definition
1. form or attempt a union at their workplace
2. Join a union, even if its not recognized by their employer
3. Assist in union-organizing efforts
4.Engage in group activities (collective bargaining) such as attempting to modify their wages or working conditions
5. To refuse to do any or all of the above unless a clause requiring employees to join the union exists
Term
Concerted Activity
Definition
When two or more non-union employees act together to try to improve working conditions, or when a single employee approaches management after conferring with other employees on their behalf or is acting on behalf of other employees, their actions are covered by NLRA
Term
Unfair Labor Practices (ULP)
Definition
1. Violations of the NLRA that deny rights and benefits to employees and can be the result of employer or union activity
2. Conditions on page 494
Term
National Labor Relations Board
Definition
An agency of the United States government that was created by Congress to administer the NLRA
Term
Two Purposes of National Labor Relations Board
Definition
1. Prevent and remedy and unfair labor practices on the part of either labor organizations or employers
2. To decide whether groups of employees want labor union representation so that they could engage collective bargaining
Term
Taft-Hartley Act of 1947
(Labor Management Relations Act)
Definition
1. Protects the rights of the employees and make the NLRB a more impartial referee for industrial relations rather than having it serve as an advocate for organized labor
Term
Provisions of Taft-Hartley Act
Definition
1.To promote the full flow of commerce
2. Prescribe the legitimate rights of employees and employers in their relations affecting commerce
3. Provide orderly and peaceful procedures for preventing employees and employers from interfering with the legitimate rights of the other party
4. Protect the rights of individual employees in their relations with labor organizations
5. Protect the rights of the public in connection with labor disputes affecting commerce
Term
Right-to-Work
Definition
Laws that prevent workers from having to join a union as a condition of employment, be prevented from joining a union as a condition of employment, be forced to pay dues to a labor union, or be fired for not paying such dues
Term
Closed Shop
Definition
The style of union ship was outlawed under Taft-Hartley and is considered the most extreme form of union membership because it requires workers to join a union before they can be hired and requires employers to go to the union first to hire new employees
Term
Union Shop Agreement
Definition
An arrangement under which all workers except managers in an organizational unit represented by a union have to become members of that union when a certain period of time after being hired or at lest pay the equivalent of union dues
Term
Agency Shop
Definition
A labor union arrangement under which employees cannot be required to join a union but can be required to pay to a union an agency dee for purpose of initiation
Term
National Emergency Strikes
Definition
A strike or lockout prevented by the government because it affects an entire industry, or a substantial part of it, and/or national health and safety are imperiled
Term
Landrum-Griffin Act (1959)
Definition
1. The last part of the National Labor Relations Code
2. Protects union members from being abused by inions
3. Outlines the responsibilities of union officers
4. Provides a bill of rights for union members
Term
Craft Unions
Definition
Unions organized to represent the interests of members with specialized craft skills
Term
Industrial Unions
Definition
Unions that have traditionally represented semiskilled and unskilled workers in a particular industry
Term
Union Steward
Definition
A union member that serves as a liaison between the rest f the employees and the leadership of the union
Term
International Unions
Definition
Federation of local unions
Term
Bargaining Unit
Definition
The group of employees designated by the NLRB or identifying by the union and employer together as eligible to participate in a union election
Term
Union Authorization Card
Definition
A.K.A. Signature Card
Document indicating that an employee in INTERESTED in being represented by a union
Term
Excelsior List
Definition
A list of names and addresses that a company must supply of employees who are eligible to vote in the representation election for a union
Term
Card Check
Definition
A process whereby a company recognizes a union once the union has produced evidence that the majority of workers have signed authorization cards indicating that they want the union to represent them
Term
Neutrality Agreement
Definition
an arrangement in which a company agrees that it will not express its views bout unionization during the time when signatures are collected
Term
Collective Bargaining
Definition
The process that labor unions and employers use to reach agreement about wages, benefits, hours worked, and other terms and conditions of employment. If workers are on strike then management can hire new workers only if the case is economic conditions not being met and not if they are being tried for breach of contract.
Term
Good Faith Bargaining
Definition
The process that requires parties to meet at a reasonable time and come to the bargaining table ready to reach a collective bargaining agreement
Term
Mandatory bargaining Topics
Definition
Topics that must be negotiated including compensation and benefits hours of employment, and other conditions of employment
Term
Permissive Topics
Definition
Non-mandatory issues:
--Employee rights
--Managerial Control
-- Benefits for retired union members
Often part of the collective bargaining negotiations
Term
Bad Faith Bargaining
Definition
Entering into a collective bargaining situation with no intention of reaching an agreement or in some other way violating the protocol for appropriate collective bargaining
Term
Distributive Bargaining Strategy
Definition
Negotiating strategy used when the goals of one party are in direct conflict with the goals of another party and results in a winner/loser
Term
Integrative Bargaining Strategy
Definition
negotiation strategy in which each party cooperates and work to reach a win-win outcome
Term
Interest Base Bargaining
Definition
An extension of integrative bargaining in which each party looks for common goals in order to meet the interests of another party
Term
Impasse
Definition
The situation in which both parties have made their final offers and are not willing to make further concessions
Term
Conciliation
Definition
A type of conciliation used when an impasse occurs in a collective bargaining session so that both parties keep working toward an agreement until they can resolve the issues at hand
Term
Mediation
Definition
The arrangement whereby an outside party works with each side in negotiation to reach an acceptable agreement
Term
Arbitration
Definition
A method of resolving disputes in which a third party acts as an intermediary and actually make the decisions about how the issue should be resolved
Term
Grievance Process
Definition
Formal steps that must be followed to settle disputes between labor and management
Term
Grievance
Definition
a charge by one or more employees that management has violated their contractual rights
Term
Decertification
Definition
the process of terminating union representation resulting in the union no longer representing the employees or engaging in collective bargaining on their behalf
Term
Corporate Campaign
Definition
Tactical Strategies designed to identify and exploit opportunities to interfere with the normal operation of a business and affect its reputation
Term
Civil Services Reform Act (1978)
Definition
Set up the Federal Labor Relations Authority
-- Oversight agency for labor management issues at the federal level
Term
Employee Retirement Income and Security Act of 1974
(ERISA)
Definition
a federal law that protects benefits for retirees in the private sector
Term
Defined Benefit Pension Plan
Definition
A pension plan that provides an annuity to eligible employees upon their retirement with the amount paid per year based on a formula that usually includes a company-determined percentage, the number of years worked, and either the last salary or some average of previous years' salaries
Term
Defined Contribution Plan
Definition
A pension plan in which the employer specifies where the money will be deposited and often gives the employee the power to decide how the money will be invested with the retirement income being a function of how well money put into the plan was invested
Term
Flexible Benefit Plan
Definition
also known as cafeteria plans
type of benefit plan that allows employees to choose which benefits they want to purchase forma menu of benefits
Term
Life Management Benefits
Definition
1. Paid Time Off
2. Educational Assistance
3. Child Care and Elder Care
4. Long-Term Care Benefits
5. Life Insurance
6. Financial Planning
7. Legal Services
Term
Educational Assistance
Definition
The company will pay for you to go to school or reimburse them for some or all of their of their educational costs
Term
Child Care and Elder Care
Definition
Provides long-term care insurance mainly to the baby boomers to keep the caregivers in the workplace
Term
Long Term Care Insurance
Definition
Provides assistance to aging, disabled, and ill persons who need daily help with tasks such as dressing, eating, or bathing for an extended period of time.
Term
Life Insurance
Definition
Provides financial protection, or income, for an employee's family in the event of the employee's death
Term
Financial Planning
Definition
these help employees understand financial literacy and can help them to achieve financial security
Term
Legal Services
Definition
Typically provides employees with access to attorneys for assistance with everything from estate planning and adoption to legal representation if they are sued, all at a reduced fee
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