HRM Flashcards

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What did the Fair Labor Standard Act do?

Fair Labor Standards Act (FLSA) - Federal law that establishes a minimum wage and requirements for overtime pay and child labor. Hours per week



Personal or Paid time off


Does PTO count for the hours worked?

*PTO does not count as hours of work. 40 hours. 1.5 x Regular Rate. Required by the FLSA *Paid or unpaid lunch matters. How many PTO hours you have left.


Paid leave

Vacations, holidays, sick leave, must also count for miltary and jury duty. Optional paid leave for voting or donating blood. There is no legal requirement for paid leave in the US. Does not count as PTO.


Progressive disipline

A formal discipline process in which the consequences become more serious if the employee repeats the offense.


What is the difference between HMO and PPO

HMO costs lest and do not have out of pocket pay but you are limited to in network doctors unless it is an emergency, you need a refferal. PPO you do not need a referal, can go in and out of the network, costs more.


Stock Ownership

Makes employees part owners of the organization. You are offered stock in the company at a certain discounted rate. Does not have much motivation effect on employees.


Stock Options

Rights to buy a certain number of shares of stock at a specified price.


Employees Stock Ownership Plans (ESOP)

An arrangement in which the organization distributes shares of stock to all its employees by placing them in a trust. Most common way. Carry significant risk. Invest certain amount of your pay into that stock. Gives a lot of motivation to employees.


What do we mean by a defined-contribution plan?

Employer sets up account for each employee; Both the employer and employee contribiute. Profit sharing and employee stock ownership plans. Section 401(k) plans.


Defined benefit plan

guarantees specefied level of retirement income. Retiremnet plans. Metts requierements of Employee Retirement Inconme Security Act. Aided by the Pension Benefit Guarantee Corporation.


Why are companies moving to defined contribution plans?

It is cheaper for the employeer and gives more freedom to the employee.


Social Security

Flat payroll tax on employees and employers. 6.2% of your pay check goes into health insurance. It requires 40 credits. You can start collecting SS at age 62, you do not have to retire however there is a 25% deduction. Full retirement age is 66 – 67 but for people born in 1955 it is 65.. If you retire at 66-67 you get the normal amount but if you wait until 70 to retire you get an 8% increase every year turning into a 132% increase. A credit is a quarter so it is based on your income. 4 credits in a year. 6.2% until you make 168,000 a year after that 0%.


Contributory Plan

Retirement plan funded by contributions from the employer and employee.


Noncontributory Plan

Retirement plan funded entirely by contributions from the employer.


Consolidated Omnibus Budger Reconciliation Act (COBRA)

Employers requied to allow employees to extend health isnuracne coverage at group rates for up to 36 months after layoff, reduction in hours, or employees death’s (for dependants). I will be offered the exact same insurance that I have at the company but I am responsible for paying the amount after the 36 months. You pay for it. Why is there…


Equity theory

Employee motivation at work is driven largely by their sense of fairness. What I put in should be what I get. Best way to not have an union is to treat them fairly.



Extent to which measurement is free from random error. Determines whether measurements are accurate. Does not determine whether what is being measured matters.

  • Reliable measurement generates consistent results.



measuring what the job requires. If you do well on the test, there is a high possibility you will succeed at the job. Predictive. Extent to which performance on measure (test score) relates to what the measure is trying to assess (job performance).


Interrater reliability

is consistency of results when more than one person measures performance. Simply asking a supervisor to rate an employee's performance on a scale of 1 to 5 would likely have low interrater reliability; the rating will differ depending on who is scoring the employees.


Test-retest reliability

refers to consistency of results over time. If a performance measure lacks test-retest reliability, determining whether an employee's performance has truly changed over time will be impossible.


Behaviorally Anchored Rating Scale (BARS)

Builds on critical incidents. Behaviors are rated in terms of scale showing specific statements that describe behaviors at different levels of performance. Designed to add the benefits of both qualitative and quantitative information to the appraisal process.


Unemployment insurace

Payroll tax on employers that depends on state requirements and experience rating. Administered by the state.


Workers compensation insurance

Provoded coverage according to state requierements; premiums depend ox experience rating.

  • You can fire them if you can prove that they violated a policy not because they got injured.
  • You get two thirds/66.6% of your pay if you get hurt

Operate under principle of no fault liability. If you get hurt on the job, I will pay for everthing and you will have a job when you come back and in retur you can not sue me.


Exclusive Remedy

  • generally two thirds of workers earnings tax free.
  • Employee does not need to show that employer was grossly negligent in order to revieve compensation.
  • Employer is protected from lawsuits. There are exceptions like the employee intentionally injures the employee, if they knew of the hazard and they do not do anything about it. Then someone tries to hide the injury, not reporting it to OSHA within 8 hours.


Four Major categoruies of covered benefits

  • Disability income
  • Medical care
  • Death benefits
  • Rehabilitative benefits


Family and Medical Leave Act (FMLA)

Up to 12 weeks of unpaid leave for childbirth, adoption, or serious illness. Taking care of a seriously ill family member. Comparable with a job guaranteed upon employee’s return. Must comply with the Pregnancy Discrimination Act.

Previous year you have to work 1250 hours, 52 days, 12 month period prior to that.


Health care

For employers with at least 50 employees, payment of a fee to the federal giverment if the employer does not meet conditions for providing insurance benfits.


Distributional error

rater uses only part of rating scale.

  • Leniency: reviewer rates everyone near top.
  • Strictness: reviewer favors lower rankings.
  • Central tendency: reviewer rates everyone in middle of scale.


Employee Assistance Program (EAP)

A referral service that employees can use to seek professional treatment for emotional problems or substance abuse.


Management by objectives (MBO)

People at each level of organization set goals in process that flows from top to bottom. Employees at all levels contribute to organization’s overall goals. Set goals become the standards for evaluating employee performance.

Three components:

  • Goals are specific, difficult, and objective.
  • Managers work with employees to set goals.
  • Manager gives objective feedback to monitor progress.


Employee Retirement Income Security Act of 1974 (ERISA

is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.


Vesting rights

when employees become participants in pension plans and work a specified number of years, they are guaranteed to receive pension at retirement regardless of if they remained with the employer. Guaranteed a pension from that company.


Labor Union golas

Obtain pay and working conditions that stisfy members, give members a coice in decisions that affect them, memebership I slinked to better compensation and benefits. Regular flow of new members is essential to survival


Checkoff provision

agreement that the company will automatically deduct from the check. Contract provision under which the employer, on behalf of the union, automatically deducts union dues from employees’ paychecks.


Closed shop

an envioremnet where you have to already be a member of an union to work at that company. Union security arrangement under which a person must be a union member before being hired; illegal for those covered by the National Labor Relations Ac No longer legal.


Union shop

I have a certain amount of time after I join the company to join the union. Union security arrangement that requires employees to join the union within a certain amount of time (30 days) after beginning employment.


Agency shop

Union security arrangement that requires the payment of union dues but not union membership.


National Labor Relations Act (NLRA) of 1935 / Wagner Act

Protects the activities, union organizing and collective bargaining, joining a union, wheter recognized by employer or not, going out on strike, refraining from activity on behalf of the union unless it is a condition of employment. You can’t make me do things on behalf of the union. Federal law that supports collective bargaining and sets out the rights of employees to form unions. It created right to work states?


Taft-Hartley Act of 1947

Allows right to work laws, closed shops, union shops, maintance memberships, and agency shops now illigal. Employees are free to join an union or not. Unions believe that all employees who receive union benefits should pay union dues. Can be legally appllied to the privite sector.


DO - F.O.E

F = Fact – Do continue to share factuallt accurate information with employees with regard to existing SOPs, benefits, wages, processes, etc…

O = Opinion – Do show opinions and viewpoints on unions in general , as well as experiences

E = Example – Share specific examples of situations that involve union organizing and contract negotiations. Sharing examples of positive actions that your worksite has experienced as a result of the employer and employees working directly with each other.



T = Threats - Threats or coercion are prohibited. Examples of threats include: telling employees that the company will close a work location or a plant if employees vote for union representation, disciplining an individual or terminating employment because an employee supports the union.

I = Interrogate – It is illegal to ask employees about their support of the union or to ask about the alignment of their peers relative to union support.

P = Promise – A business cannot interfere in the organizing efforts by assuring employees that the company will make things better for them if they just keep the union out. This is just as illegal as making threats.

S = Surveillance – Even the appearance of spying should be avoided. Examples of surveillance include: taking pictures of employees going into a union meeting.


Contrast error

rater compares individual not against objective standard but against other employees.


Distributional error

rater uses only part of rating scale.

  • Leniency: reviewer rates everyone near top.
  • Strictness: reviewer favors lower rankings.
  • Central tendency: reviewer rates everyone in middle of scale.


Rater bias

  • bnm jb jlb/jlnm j uses favorable ratings.

Horns error: bias causes negative ratings.


Behavioral Observation Scale (BOS)

A variation of BARS. The rating scale includes all critical behaviors. Ask the manager to rate the frequency with which the employee has exhibited each behavior during the period.


Behavioral Observation Scale (BOS)

A variation of BARS. The rating scale includes all critical behaviors. Ask the manager to rate the frequency with which the employee has exhibited each behavior during the period.


Organizational Behavior Modification (OBM)

Builds on branch of psychology call behaviorism. Employer provides feedback and reinforcement to encourage behaviors that achieve company goals.


Flexible spending accounts

Employee-controlled pretax earnings set aside to pay for certain eligible expenses, such as health care expenses, during the same year. Employees set aside a portion of pretax earnings to pay for eligible expenses.


Caferia Style Plan

The company will allow you to select the benefits you want, what you feel is important for you. A benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want.


American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)

An association that seeks to advance the shared interests of its member unions at the national level. Not an union, organization, came together but they are still independent.


Management Goals

Increase the organization’s profits. Keep labor costs low and increase output. Limit increases in wages and benefits. Retain control over work rules and schedules. Mantian flexible opertaions to meet competitive challenges and customer demands. They pay certain people in donations etc.. for it to me for faborable from them.


Landrum-Griffin Act of 1959

Regulates unions actions with regard to their members, including financial disclousure and conduct of elections.


National Labor Relations Board (NLRB)

Federal government agency that enforces the NLRA by conducting and certifying representation elections and investigating unfair labor practices. Consists of a 5 member board that rotates, A general counsel and 52 regional and other field offices. They make sure that the elections are done by regulation, secret balots. When they rule on something it often becomes a law.


The Process of Organizing

An union rep can not go on site but the employees can meet them else where.

  1. Union representatives contact employees.
  2. Employees invited to sign authorization card, at least 30% must sign for process to continue.
  3. If not signed, the NLRB conducts a secret balllot eletction, based on a consent eletion or stipulation election.
  4. Workers vote for or against an union representation.
  5. The NLRB certifies the unions or holds a runoff election.