Human Resource Management quiz

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Human Resource Management 110 MCQ...need finished it in 2hours

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Compensation Management [Chapter 9] Dr. Ibrahim Abdellah Today’s Session Chapter 9 – Compensation Management Case Study – Compensation Management • A critical and important HR activity • All employees, regardless of type of job and industry expect to be fairly compensated for their work, time, and effort. Objectives of Compensation • Internal equity – pay related to relative worth of jobs • External equity – paying workers relative to market Acquire Personnel Legal Compliance Effective Compensation Control Costs Retain Employees Reward Behaviour Compensation Management • Compensation can either be: • Cash • Non-cash • Examples of non-cash compensation? • Cash and non-cash rewards employee receive in exchange for their work • Direct compensation includes wages paid and variable pay such as bonuses, commissions, and stocks Effective Compensation Management Employees more likely to be satisfied, motivated, and contribute to objectives Ineffective Compensation Management • Performance, motivation, and satisfaction may decline dramatically • Turnover may occur • Dissatisfaction with absolute or relative pay • Absolute vs. Relative pay ? Objectives of Compensation 1. 2. 3. 4. 5. 6. 7. Retain employees Ensure equity (pay relative to work) Reward behavior Acquire Personnel Legal Compliance, eg. Minimum wage? Control Costs Administrative Efficiency Compensation Management: Matching Internal and External Worth In other words, how much do we pay (reward) an employee for a particular job? How many phases? Phase 1 – Compensation Philosophy • Lead • Match • Lag Phase 2 – Job Analysis • Initial job analysis • Identify and study jobs • Position descriptions • Job descriptions • Job standards Phase 3– Pricing Jobs • Determine relative worth or value of jobs – Requires the determination of a method • Provides for internal equity • Job evaluation methods – Job ranking – Job grading – Point systems (most common) Phase 3 – Pricing Jobs • Determine relative worth or value of jobs • Three approaches: – Market-pricing – Skill-based (discuss in later slides) Pricing Jobs: Market-Based Pay Structures • Market-pricing focuses on external competitiveness – How much should organizations pay for jobs based on what their competitors are paying • Wage and salary surveys – Same labour market comparable jobs • Matching the market, market leader, market lag Phase 4 – Matching Internal and External Worth (Matching Employees to Pay) • Establishing the pay level for each job – Combines job evaluation rankings, survey wage rates, and other considerations e.g. organization’s pay policy – Wage-trend line developed (Scattergram) • Creating compensation structure – Job classes and rate ranges Challenges Affecting Compensation Prevailing wage rates Government constraints Challenges Affecting Compensation Wage & salary policies Union power Productivity Phase IV– Matching Internal and External Worth (Matching Employees to Pay) • Establishing the pay level for each job – Combines job evaluation rankings, survey wage rates, and other considerations e.g. organization’s pay policy – Wage-trend line developed (Scattergram) • Creating compensation structure – Job classes and rate ranges Pay Equity • Canadian Human Rights Act prohibits discrimination based on sex • It is illegal for companies to pay women less than men if their jobs involve equal skills, effort, responsibilities, and conditions • Government enforces these provisions Pay Equity • Equal pay for equal work (Equal Pay) – Part of Canada Labour Code since 1971 – Employers must pay men and women the same wage or salary when they do the same work • Equal pay for work of equal value (Pay Equity) – Jobs of comparable worth to the organization should be paid equally – Part of Canadian Human Rights Act since 1978 Wage Gap • Wage gap – Historical gap between the income of men and women – Women earn about 80% as much as men • Wage gap exists in part due to: – Women tend to work in lower-paying occupations e.g. teaching, retail, nursing – Career gaps - leave workforce to care for children – 5-10% due to gender-based pay discrimination The Pay-for-Performance Model • Incentive systems provide the clearest link between pay and performance or productivity • Incentive pay – Directly linked to employee’s performance or productivity Incentive Systems Benefits Performance is reinforced regularly Reinforcement is quick and frequent Problems Administration can be complex May result in inequities Employees may not achieve Desired behaviours are likely standards due to uncontrollable forces to continue Union resistance Wages paid in proportion Employees may focus on with performance only one aspect Individual vs. Team Incentives INDIVIDUAL TEAM-BASED • Piecework • Team results • Production incentives • Production bonuses • Profit-sharing plans • Stock ownership (ESOPs) • Commissions • Cost reduction plans • Executive incentives • Nonmonetary • Pay Secrecy Pay Secrecy • Advantages – Most employees prefer to have their pay kept secret – Gives managers greater freedom – Covers up inequities • Disadvantages – May generate distrust in the pay system – Employees may perceive there is no relationship between pay and performance New Approaches to Pay • Skill- or knowledge-based pay – Based on the employee’s skills or knowledge – Autonomous work groups • Variable pay – Performance-linked compensation approach Total Rewards Model 1. Compensation 2. Benefits 3. Social interaction 4. Security 5.Status/recognition 6. Work variety 7. Workload 8. Work importance 9.Authority/control 10. Advancement 11. Feedback 12. Work conditions 13. Development Wages, commissions, and bonuses Vacations, health insurance Friendly workplace Stable, consistent position and rewards Respect, prominence Opportunity to experience different things Right amount of work (not too much, not too little) Is work valued by society? Ability to influence others; control own destiny Chance to get ahead Receive information to improve performance Hazard free Formal and informal training • Broadbanding – Consolidation of pay grades into a few broad bands • Tailor-Made perks • International Pay Areas that Impact Pay Systems • • • • • • • Relating Rewards to performance Identifying Valued Rewards Motivating Performance Setting performance goals Motivation and punishment Motivating Skill and Knowledge Development Fostering Attraction and Retention Questions on Chapter 9? Employee Benefits & Services [Chapter 10] Dr. Ibrahim Abdellah Today’s Session Chapter 10 – Employee Benefits & Services Employee Benefits: Total Compensation Direct • Pay Compensation • Based on critical job factors or performance • Benefits and services extended as a Indirect condition of employment Compensation • Not directly related to performance • Approaching 50% of annual payroll expenses The Role of Indirect Compensation: Societal Objectives • To solve social problems and provide security for interdependent wage earners • Employers can deduct the costs of benefits as a business expense • Employees receive most benefits tax-free • Benefits and services give many employees financial security against illness, disability, and retirement The Role of Indirect Compensation: Organizational Objectives • Must offer benefits to recruit and retain • Help reduce fatigue and may enhance productivity e.g. rest breaks, vacations • Discourage labour unrest • Satisfy employee objectives • Aid recruitment and reduce turnover • Minimize overtime cost The Role of Indirect Compensation: Employee Objectives • • • • Lower costs and availability Lower income taxes Partial protection from inflation Primary objective may be to obtain benefits and services e.g. supplemental health and life insurance Legally Required and Voluntary Benefits Legally Required Voluntary • CPP/QPP • Life & Health Insurance • Employment Insurance • Salary Continuation • Workers’ Compensation • Employee Security • Health Insurance Plans • Paid Time-Off Benefits • Holidays & Vacations • Employee Services Voluntary Benefits: Insurance • Insurance Benefits – Life insurance – almost a universal benefit – Health-related insurance – Salary continuation plans for short-term and long-term disability Voluntary Benefits: Employee Security Benefits • Employee Security Benefits – Employment income security • Severance • Guaranteed Annual Wage (GAW) • Supplemental Unemployment Benefits (SUB) Voluntary Benefits: Retirement Security • Registered Pension Plans (RPP) • Defined Benefits (DB) Plans • Defined Contribution (DC) Plans • Two problems administering pension plans: 1. If employers go out of business – plan is left unfunded 2. Some companies minimize their pension costs by having very long vesting periods. • Pension Benefits Standards Act Voluntary Benefits: Paid Time-Off Benefits – On-the-job breaks e.g. rest breaks, meal breaks – Paid sick leave – Holidays and vacations Voluntary Benefits: Employee Services • Educational assistance e.g. tuition refund • Financial services e.g. employee discount plans • Social services ➢ Employee Assistance Programs (EAPs) ➢ Relocation programs Emerging Services & Trends Benefits for Part-Time Same-Sex Benefits Increased Medical Emerging Services & Trends Child & Elder Care Paid Leaves e.g. Education Increased Vacations Pension Coverage Pension Portability Management of Voluntary Benefit and Service Programs • Problems in Administration – Lack of employee involvement – Failing to recognize individual differences and needs – Workers may be unaware of all their benefits • Traditional remedy has been to increase employee awareness A Proactive Solution: Flexible Benefits • Flexible benefits programs (cafeteria benefit programs) – Allow employees to select benefits and services that match their individual needs. – Workers are provided a benefit and services account with a specified number of dollars in the account. – Increases administrative costs and obligations – Technology increasingly being used to handle administration e.g. web-based Implications for HRM • Comply with all legal requirements and maintain accurate employee records • Avoid duplication • Reducing accidents to lower the cost of workers’ compensation • Challenge all unjustified claims for employment compensation Implications for HRM (cont’d) • Take measures to control health costs e.g. use generic drugs • Retention of key employees • Innovative and flexible benefits are very effective tools to attract and retain highly skilled staff Benefit Audit • Claims audit - examines claims and trends • Organizational audit - examines efficiency and effectiveness • Benefit audit enables employers to: – – – – – Identify opportunities for savings Ensure insurers and third-parties are effective Exert effective control over benefits area Identify who is in control of benefits budget Compare claiming patterns to other employers Goods and Services Tax Application to Benefits • Generally, GST has to be paid on the following benefits: • • • • Company cars Car operating costs Tax return preparation Short-term residential accommodation • Holiday trips within continental North America • Frequent flyer points • Financial counselling • Parking Benefits & Strategy Implications • The following steps are required: • • • • • • • Define the objectives of the organization Link HR and organizational objectives Assess the needs of employees Assess and comply with legal requirements Compare company’s benefits with competitors Make sure benefits are valued by employees Conduct an annual benefit audit Questions on Chapter 10? Ensuring Health & Safety in the Workplace [Chapter 12] Dr. Ibrahim Abdellah Today’s Session Chapter 12 – Ensuring Health and Safety in the Workplace Assumption of Risk If you are injured on the job, who is or should be at fault? You or your employer? What is assumption of risk? Assumption of Risk • Was a legal expression used by the courts • Obsolete attitude toward accident prevention where the worker accepted all the customary risks and unsafe practices of the occupation Careless worker: Early approach to safety in the workplace which assumed accidents were due to workers’ carelessness Shared Responsibility A newer approach to workplace safety that relies on the cooperation of the employer and employees Why is ‘Health & Safety’ important? • Workplace accidents and occupation-related illnesses: – $8B annually in direct compensation – More than $19B including indirect expenses • Direct cost of injuries: – Lost wages, medical treatment, rehabilitation, etc. • Indirect costs: – Lost production, recruiting, training, etc. Types of Health Hazards Physical Agents Exposure to physical elements eg. noise Biological Agents Ergonomically Related Exposure to natural organisms eg. viruses Caused by the work environment eg. repetitive strain Younger Workers • Growing emphasis on the health and safety of young workers • 1 in 7 young workers is injured on the job • One-fourth of all workplace injuries involve workers aged 15 – 29 years • Most common types of injuries are electrocution and machine injuries Federal and Provincial Safety Regulations • Each province & federal jurisdiction have detailed legislation addressing health and safety • 3 Fundamental Employee Rights (Canada Labour Code) – The right to know about hazards in the workplace – The right to participate in correcting hazards – The right to refuse dangerous work Federal and Provincial Safety Regulations • Workplace Health And Safety Committee (20+ employees) – Representatives of both employee and employer • Hazardous Products Act • Protects consumers by regulating the sale of dangerous products • Transportation of Dangerous Goods Act – Transport Canada Federal and Provincial Safety Regulations • Canadian Centre for Occupational Health and Safety Act – – – – Promotion Co-operation on federal, provincial, and territorial levels Development of policies and programs Statistics database • Workplace Hazardous Material Information System (WHMIS) - part of Hazardous Products Act • Requires that employers provide training to enable employees to understand and recognize hazards • Suppliers need to label their hazardous products and provide data sheets on each Responsibility for Health and Safety • Legal requirements – should be seen as the minimum requirements for employers • Canada’s top 100 employers in 2015 place considerable attention on safety • A focus on educating young employees about workplace safety Responsibility for Health & Safety Top Management Responsibility for Health and Safety Employees Supervisors Implications for HRM • Ensure consistent enforcement • Best defence to a health and safety offence is “due diligence” • Health and safety audit • Safety climate • Downsizing and safety Workplace Stress • Workplace Stress • Harmful physical and emotional responses • Stress Management • Now part of manager/employee vocabulary • Ways of dealing with the problem of stress Workplace Stress What are some sources of workplace stress? Workplace Stress • Symptoms of stress that can harm employee performance • Nervousness; chronic worry; easily provoked • Unable to relax • Stress-related physical ailments e.g. stomach upsets, cardiovascular disease • Musculoskeletal disorders e.g. back injuries • Psychological disorders e.g. depression Causes of Workplace Stress ‘Stressors’ Factors unique to the job • Workload/pace, autonomy shift work, physical environment, isolation Role in the organization • Role conflict/role ambiguity, level of responsibility Career development • Includes under- or over-promotion, job security, overall job satisfaction Causes of Workplace Stress (cont’d) ‘Stressors’ Relationships at work • Includes supervisors/coworkers/subordinates, threat of violence or harassment Organizational climate • Participation (or not) in decisionmaking, management style, communication patterns Key Terminologies Burnout Presenteeism Curative methods Preventive measures Stress Audit Burnout Condition of mental, emotional, and sometimes physical exhaustion that results from substantial and prolonged stress Presenteeism Employee coming to work but not achieving optimal productivity levels due to ongoing health issues Stress Management • Curative methods • Try to correct the outcomes of stress e.g. availability of exercise, counselling services • Preventive measures • Attempt to change the cause of stress e.g. stress management training, improve work conditions • Stress Audit • Identifies the causes of stress Stress and Job Performance • Can be helpful or harmful depending on amount of stress experienced • When there is no stress, job challenges are absent and performance tends to be low. Health and Safety • Organizations cannot afford to ignore health and safety • HR department needs to be proactive • e.g. train supervisors, provide counselling, etc. HR Actions to Reduce Stress Establish policy Provide training Work schedules Compatible workload HR Actions to Reduce Stress Social interaction Job design Define roles Participate in decisions Is the issue of mental health in the workplace over-exaggerated? Mental Health • Mental health costs the Canadian economy about $50 billion a year and $6 billion annually for lost productivity resulting from mental health absenteeism. • Approximately 6.7 million Canadians have a mental health problem or illness • About half a million Canadians are absent in any given week as a result of mental health issues • Around 30% of disability claims and 70% of disability costs are attributable to mental illness Fitness & Employee Wellness Program • • • • • • Improve employee health Decrease health care costs Improve employee satisfaction Decrease absenteeism and turnover Improve corporate image Reduce disability claims Other Contemporary Safety Issues • Workplace Security • Sick Building Syndrome (SBS) • Building-related illness • Workplace Violence • Ergonomics Occupational Health and Safety Strategy • Top management’s involvement in setting health and safety policies is essential. • Clearly assign responsibilities for plant safety and health programs to ensure that the company’s policies are carried out. • An occupational health and safety committee with enforcement authority is very helpful Questions on Chapter 12? The Union-Management Framework [Chapter 13] Dr. Ibrahim Abdellah Today’s Session Chapter 13 – The Union-Management Framework Unions Defined A union is an organization with the legal authority to represent workers, negotiate the terms and conditions of employment with the employer, and administer the collective agreement • Unions do not just happen—caused by management action or inaction that workers perceive as unfair Collective Agreement Contract negotiated between the union and employer outlining terms and conditions of employment • Addresses a variety of issues e.g. wages and benefits, hours of work, working conditions, grievance procedures, etc. • Places restrictions on management’s rights in managing the workplace Causes of Unions Union Push • Some employees are pushed or forced into j ...
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