Training and Development

    1.    Define training and development.
    •    Training and development – is the heart of a continuous effort designed to improve employee competency and organizational performance
    i.    Training- activities designed to provide learners with the knowledge and skills needed for their present jobs
    ii.    Development – learning that goes beyond today’s job and has a more long-term focus
    2.    What is a learning organization?
    •    Firm that recognizes the critical importance of continuous performance related T&D and takes appropriate action
    3.    What are some factors that influence T&D?
    •    Top management support – executives providing the needed resources to support the T&D effort
    •    Technological Advances – technology plays a key role in changing the way knowledge is delivered to employees
    •    World complexity – has an impact on how the organization operates
    •    Lifetime Learning – learning is a continuous process due the environment the workforce faces
    •    Learning styles
    4.    What are the steps in the T&D process?
    •    Determine Specific Training and Development needs
    i.    Organizational analysis
    ii.    Task analysis
    iii.    Person analysis
    •    Establish T&D Objectives
    •    Select T&D Method(s) and Delivery System(s)
    •    Implement T&D Programs
    •    Evaluate T&D Programs
    5.    What are the various training and development methods? Briefly describe each.
    •    Instructor led – instructor physically stands in front of students
    •    E-learning – virtual lecture from an instructor, can be self-paced, includes help screens provide additional explanation, program varies in speeds and languages for a student
    •    Case study – trainees study the information provided in the case and make decisions based on it
    •    Virtual reality – extension of e-learning  that permits trainees to view objects from a perspective that is otherwise impractical or impossible
    •    Behavior modeling and twittering – permits a person to learn by copying or replicating behaviors of others to show managers how to handle various situations
    •    Role-playing –participants are required to respond to specific problems they may encounter in their jobs by acting out real-world situations
    •    Business games – method that permits participants to assume roles such as president, controller, or marketing vice president of two or more similar hypothetical organizations and compete against each other by manipulating selected factors in a particular business situation
    •    In-basket training – the participant is asked to establish priorities for and then handle a number of business papers, e-mail messages, memoranda, reports and telephone messages that would typically cross a manager’s desk
    •    On-the-job training – permits an employ to learn jobs tasks by actually performing them
    •    Internships – recruitment method typically involving students in higher education who divide their time between attending classes and working for an organization. Integrate theory learned in the classroom with business practices
    •    Apprenticeship training combines classroom instruction with on-the-job training

    6.    What are the various training and development delivery systems? Briefly describe each.
    •    Corporate university – provided under the umbrella of the organization, focuses on creating organizational change that involves areas such as company training, employee development and adult learning
    •    College and universities – primary delivery system for training professional, technical and management employees
    •    Community colleges – publicly funded higher education establishments that deliver vocational training and associate-degree programs
    •    Online-higher education – education opportunities including degree and  training programs that are delivered either partially or entirely via the internet
    •    Vestibule system – takes place away from the production area on equipment that closely resembles equipment actually used on the job
    •    Video media – use of DVD’s, videotapes and film clips, efficient for small businesses who cannot afford more expensive training methods
    •    Simulators – comprised of devices or programs that replicate actual job demands (vary from paper mock-ups of mechanical devices to computerized simulation of total environments

    7.    Define management development. Why is it important?
    •    Consists of all learning experiences provided by an organization resulting upgrading skills and knowledge required in current and future managerial positions.
    •    It is important because a firm’s future lies largely in the hands Otis managers. This is because this group performs certain functions essential to the organization’s survival and prosperity. Mangers must make the right choices in most of their decisions otherwise the firm will not grow and may even fail.  The development of their interpersonal skills and business knowledge is just as important their technical skills
    8.    Distinguish between mentoring and coaching. What is reverse mentoring?
    •    Mentoring – approach to advising, coaching and nurturing for creating a practical relationship to enhance individual career, personal and professional growth and development
    i.    Can be anywhere in org or even another firm
    •    Coaching – often considered a responsibility of the immediate boss, who provides assistance, much like a mentor
    i.    Has greater experience or expertise than the protégé and is in position offer wise advice
    •    Reverse Mentoring – a process in which older employees learn from younger ones
    9.    Define orientation, and explain the purposes of orientation.
    •    Orientation – initial T&D effort for new employees that informs them about the company, the job and the work group
    •    Purposes
    i.    Employment situation – illustrates to new employee how his or her job fits into firm’s organizational structure and goals
    ii.    Company policies and rules – helps employees understand workplace rules for a smoother transition
    iii.    Compensation – reviews reward system
    iv.    Corporate culture – how things are done around here
    v.    Team membership – emphasizes the importance of becoming a valued member of the company team
    vi.    Employee development
    vii.    Socialization – reduce the anxiety that new employees may experiences and integrate into the informal organization
    10.    What are some metrics for evaluating training and development?
    •    Participant Reaction
    •    Level of Learning Achieved
    •    Changes in Learner Behavior
    •    Business Results Derived From Training
    •    Return on Investment From Training
    •    Benchmarking
    11.    What is the Workforce Investment Act?
    •    WIA replaced the problem-riddled  Job Training Partnership Act and consolidated more than 70 federal job-training programs
    •    Provides states the flexibility to develop streamlined systems in a partnership with local govts.
    •    Provide employment and training services designed to benefit employers, dislocated workers, and low income youth
    12.    Define each of the following:
    •    Organization development – planned and systematic attempts to change the organization, typically to a more behavior environment
    •    Survey feedback – process of collecting data from an organization unit through the use of questionnaires, interviews and objective data from other sources such as records of productivity, turnover and absenteeism
    •    Quality circles – groups of employees who voluntarily meet regularly with tier supervisors to discuss problems, investigate causes, recommend solutions and take corrective action when authorized to do so
    •    Sensitivity training – organization development technique that is designed to help individuals learn how other perceive their behavior (also known as T-Group training
    •    Team building  – conscious effort to develop effective work groups and cooperative skills throughout the organization
    Chapter 8 Performance and Management Appraisal
    1.    Define performance management and performance appraisal.
    •    Performance Management – goal-oriented process directed toward ensuring that organizational processes are in place to maximize the productivity of employees, teams, and ultimately, the organization.
    •    Performance Appraisal – formal system of review and evaluation of individual or team task
    2.    What are the uses of performance appraisal?
    •    Human Resources Planning – performance appraisal can provide organizations HR strengths and weaknesses
    •    Recruitment and Selection
    •    Training and Development
    •    Career Planning and Development
    •    Compensation Programs
    •    Internal Employee Relations
    •    Assessment of Employee Potential
    3.    What are the steps in performance appraisal process?
    •    Identify Specific Performance Appraisal Goals
    •    Establish Performance Criteria and Communicate Them to Employees
    •    Examine Work Performed
    •    Appraise Performance
    •    Discuss Appraisal with Employee
    4.    What aspects of a person’s performance might an organization evaluate?
    •    Traits – attitude, appearance, judgment, adaptability and initative
    •    Behaviors – task related behaviors
    •    Competencies – broad range of knowledge, skills, traits and behaviors that may be technical in nature, relate to interpersonal skills or are business-oriented
    •    Goal Achievement- if ends more important than means
    •    Improvement Potential
    5.    Many different people can conduct performance appraisals. What are the alternatives?
    •    Immediate Supervisor
    •    Subordinates
    •    Peers and team Members
    •    Self-Appraisal
    •    Customer Appraisal
    6.    Briefly describe each of the following methods of performance appraisal
    •    360-degree feedback evaluation – involves evaluation input from multiple levels within the firm as well as external sources, people all around the rate employee may provide ratings
    •    Rating Scales – rate employees according to defined factors (use of adjectives outstanding, meets expectations or needs improvement), usually choose job related or personal characteristics
    •    Critical Incidents – requires keeping written records of highly favorable and unfavorable employee work actions
    •    Essay – which the rater writes a brief narrative describing the employees performance
    •    Work Standards – compares each employee’s performance to a predetermined standard or expected level of output
    •    Ranking – the rater ranks all employees from a group in order of overall performance
    •    Force Distribution – the rater is required to assign individuals in a work group to a limited number of categories, similar to a normal frequency distribution
    •    Behaviorally Anchored Rating Scales – that combines elements of the traditional rating scale and critical incident methods; various performance levels are shown along a scale with each described in terms of an employee’ specific job behavior
    •    Results-Based Systems – in which the manager and subordinate jointly agree on objectives for the next appraisal period; in the past a form of management by objectives
    7.    What are the various problems associated with performance appraisal? Briefly describe each.
    •    Appraiser discomfort – if a performance appraisal system has a faulty desing or improper administration employees will dread appraisals and the manager will depise giving them. Loathe time, paperwork, difficult choices and discomfort that accompanies them
    •    Lack of Objectivity – hard to measure certain factor of attitude, appearance and personality
    •    Halo/Horn Error
    i.    Halo – evaluation error that occurs when a manager generalizes one positive performance feature or incident to all aspects of employee performance resulting in a higher rating
    ii.    Horn – evaluation error that occurs when a manager generalizes one negative performance feature or incident to all aspects of employee performance, resulting in a lower rating
    •    Leniency/Strictness
    i.    Leniency -giving a undeserved high performance appraisal rating an employee
    ii.    Strictness – being unduly critical of an employee’s work performance
    •    Central Tendency Error – evaluation appraisal error that occurs when employees are incorrectly rated near the average or middle of a scale.
    •    Recent Behavior Bias – must maintaining records of performance throughout the appraisal period because behavior often improves and productivity tends to rise close to evaluation time. Most evaluators remember recent behavior
    •    Personal Bias (Stereotyping) – allowing individual differences to affect the rating they give, like gender, race, age or sexual orientation
    •    Manipulating the Evaluation – since managers control virtually every aspect f the appraisal process and they therefore in the position to manipulate the system
    •    Employee Anxiety – appraisal may create anxiety for the appraised employee

    8.    What are the characteristics of an effective appraisal system?
    •    Job related criteria
    •    Performance expectations – agreed upon in advance of appraisal
    •    Standardization – should use the same evaluation instrument for all employees in the same job category who work for the same supervisor
    •    Trained appraisers – training should cover how to rate employees and how to conduct appraisal interviews
    •    Continuous Open communication – providing highly desired feedback on a continuous basis to avoid surprises within the performance review
    •    Conduct Performance Reviews – a special time should be set for a formal discussion of ne employee’s performance between the manager and the employee
    •    Due Process – give a formal grievance procedure
    9.    What are the legal implications of performance appraisal?
    •    Mistakes in appraising performance and decisions based on invalid result can have serious repercussions
    •    An employer may also be vulnerable to a negligent retention claim if an employee who continually receives unsatisfactory ratings in safety practices for example is kept on payroll and he or she causes injury to a 3rd party
    10.    Explain why the following statement is often true: “The Achilles’ heel of the entire evaluation process is the appraisal interview itself.”
    •    This is because they often create hostility and can do more harm than good. An appraisal interview has the potential for confrontation and undermining the goal of motivating employees. If employees do understand the system they will not trust it.
    Chapter 9 – Direct Financial Compensation
    1.    Define each of the following terms:
    •    Compensation – total of all rewards provided to employees in return for their services
    •    Direct financial compensation – pay that a person receives in the form of wages, salary, commissions and bonuses
    •    Indirect financial compensation – all financial rewards that are not included in direct financial compensation
    •    Nonfinancial compensation – satisfaction that a person receives from the job itself or from the psychological and/or physical environment in which the person works
    2.    What are the differences among external equity, internal equity, employee equity, and team equity?
    •    External equity – equity that exists when a firm’s employees receive pay comparable to workers who perform similar jobs in other firms
    •    Internal equity – equity that exists when employees receive pay according to the relative value of their jobs within the same organization
    •    Employee equity- equity that exists when individuals performing similar jobs for the same firm receive pay according to factors unique to the employee,  such as performance level or seniority
    •    Team equity – equity that is achieved when teams are rewarded based on their group’s equity
    3.    Why might a firm want to be a pay leader as opposed to paying market rate?
    •    Pay leaders organizations that pay higher wages and salaries than competing firms – by using this strategy firm feels they will be able to attract high-quality, productive employees and thus achieve lower per-unit labor costs. As a result attract more highly qualified applicants than lower-paying companies in the same labor market. Also if paying market rate will not be as competitive because cannot obtain top-tier talent
    4.    What are the primary determinants of direct financial compensation? Briefly describe each.
    •    The organization
    o    compensation policies – policy that provides general guidelines for making compensation decisions
    o    organizational level
    o    ability to pay
    •    labor market
    o    Compensation Survey – a means of obtaining data regarding what other firms re paying for specific jobs or job classes within a given labor market
    o    Expediency – receiving real-time information through recruiters and hiring managers on the front lines
    o    Cost of living – when prices rise over time and pay does not, real pay is actually lowered. Therefore a pay increase must e roughly equivalent to the increased cost of living if a person is to maintain his or her previous level of real wages
    o    Labor Unions –compensation through the process of collective bargaining
    o    Economy – depressed economy increases the labor supply, while booming economy creates greater competition for workers and the price of labor is driven upward
    o    Legislation – equal pay act, civil rights act, the age discrimination in employ act, American with disabilities act
    •    Job
    o    Job analysis – define content of job, systematic process of determining the skills and knowledge required for performing the jobs
    o    Job descriptions – a written documents that describes job duties or functions and responsibilities
    o    Job evaluation – process that determines the relative value of one job in the relation to another
    •    Employee
    o    Job performance
    o    Skills
    o    Competencies
    o    Seniority
    o    Experience
    o    Organization membership
    o    Potential
    o    Political influence
    o    Luck

    5.    What organizational factors should be considered as determinants of direct financial compensation?
    •    compensation policies – policy that provides general guidelines for making compensation decisions
    •    organizational level
    •    ability to pay
    6.    What factor should be considered when the labor market is a determinant of direct financial compensation?
    •    Compensation Survey – a means of obtaining data regarding what other firms re paying for specific jobs or job classes within a given labor market
    •    Expediency – receiving real-time information through recruiters and hiring managers on the front lines
    •    Cost of living – when prices rise over time and pay does not, real pay is actually lowered. Therefore a pay increase must e roughly equivalent to the increased cost of living if a person is to maintain his or her previous level of real wages
    •    Labor Unions –compensation through the process of collective bargaining
    •    Economy – depressed economy increases the labor supply, while booming economy creates greater competition for workers and the price of labor is driven upward
    •    Legislation – equal pay act, civil rights act, the age discrimination in employ act, American with disabilities act
    7.    How has government legislation affected compensation?
    •    Enforce rules that create equity for all members
    o    Davis-Bacon Act of 1931 – mandates a prevailing wage for all federally financed or assisted construction projects exceeding $2,000
    o    Walsh-Healy Act of 1936 – requires companies with federal contract exceeding $10,000 to pay prevailing wages
    o    Fair Labor Standards Act of 1938 (FLSA) – minimum labor standards on a national basis and to eliminate low wages and long working hours
    o    Troubled Assets Relief Program (TARP)
    8.    What is the difference between an exempt and a nonexempt employee?
    •    An exempt employee is excused from the overtime provisions and while nonexempt are included and companies must pay them 1.5 times their rate after 40 hours of work in 168-hour period
    o    Exempt employees are executive, administrative, professional and outside salespersons
    9.    What factors should be considered when the job is a determinant of direct financial compensation?
    •    Job analysis – define content of job, systematic process of determining the skills and knowledge required for performing the jobs
    •    Job descriptions – a written documents that describes job duties or functions and responsibilities
    •    Job evaluation – process that determines the relative value of one job in the relation to another
    10.    Give the primary purpose of job evaluation
    •    To identify the organization’s job structure
    •    To eliminate pay inequities and bring order to the relationships among jobs
    •    To develop a hierarchy of job value for creating a pay structure
    11.    Distinguish between the following job evaluation methods
    •    Ranking – job evaluation method in which the raters examine the description of each job being evaluated and arrange the jobs in order according to their value to the company
    •    Classification – in which classes or grades are defined to describe a group of jobs
    •    Factor comparison – assumes there a five universal factors consisting of mental requirements, skills, physical requirements, responsibilities and working conditions; the evaluator makes decisions on these factors independently
    •    Point method – which the raters assign numerical values to specific job factors, such as knowledge required and the sum of these values provides a quantitative assessment of a job’s relative worth
    12.    Describe the Hay guide chart-profile method of job evaluation
    •    Refined version of the point method used by approximately 8,000 public and private sector organizations worldwide to evaluate clerical, trade, technical, professional, managerial, and/or executive-level jobs
    13.    What is the purpose of job pricing? Discuss briefly.
    •    Placing a dollar value on a job’s worth. This is because the relative value of each job in the organization has to be determined
    14.    State the basic procedure for determining pay grades.
    •    Grouping similar jobs to simplify pricing jobs. A basic way to do this is through plotting jobs on scatter diagram to determine the appropriate number of pay grades for a company. The scatter diagram looks at pay vs. points (worth). Then wage curve (pay curve) is the fitting of plotted points to create a smooth progression between pay grades (regression line)
    15.    What is the purpose of establishing pay ranges?
    •    Minimum and maximum pay rate with enough variance between t the two to allow for a significant pay difference
    •    Allow a firm to compensate employees according to performance and length of service.
    •    Thus pay serves as a positive incentive
    16.    Define broadbanding.
    •    Compensation technique that collapses may grades into a few wide bands in order to improve organizational effectiveness
    17.    Distinguish between merit pay, bonus and piece work
    •    Merit pay – pay increase added to employees’  base pay based on their level of performance
    •    Bonus – one-time annual financial award, based on productivity, that is not added to base pay
    •    Piecework – incentive pay plan in which employees are paid for each unit they produce
    18.    Describe factors related to the employee as a determinant of direct financial compensation.
    o    Job performance
    o    Skills
    o    Competencies
    o    Seniority
    o    Experience
    o    Organization membership
    o    Potential
    o    Political influence
    o    Luck
    19.    What are some company-wide, team-based pay plans?
    •    Company-wide pay plans
    o    Profit sharing – compensation plans that result in the distribution of a predetermined percentage of the firm’s profits to employees
    o    Gain sharing – plans deigned to bind employees to the firm’s productivity and provide an incentive payment based on improved company performance
    •    Team based pay
    o    Situation that occurs when less experienced employees are paid as much as or more than employees who have been with the organization a long time due to a gradual increase in starting salaries and limited salary adjustment or long term employees
    20.    How is the compensation for professionals determined?
    •    A professional employees performs work requiring advanced knowledge in a field of learning, normally acquired through a prolonged course of specialized instruction
    •    Their pay initially is for the knowledge they bring to the organization
    21.    How is the compensation for sales representatives determined?
    •    Straight salary – salespersons receive a fixed salary regardless of their sales levels
    •    Straight commission – person’s pay is totally determined as a percentage of sales
    •    Part-salary, part commission
    22.    What are the various types of executive compensation?
    •    Base salary
    •    Bonuses and performance based pay
    •    Stock options plan- incentive plan in which executives can buy a specified amount of stock in their company in the future at or below current market price
    •    Perquisites (perks) – special benefits provided by a firm to a small group of key executives and designed to give the executive something extra
    23.    Describe each of the following:
    •    Golden parachute contract – perquisite that protects executives in the event that another company acquires their firm or the executive is forced to leave the firm for other reasons
    •    Clawback contract provision – allows the company to recover compensation if subsequent review indicates that payments were not calculated accurately or performance goals were not met

    Chapter 10 – Indirect Financial Compensation (Benefits) and Nonfinancial Compensation
    1.    Define indirect financial compensations (benefits).
    •    All financial rewards that are not included in direct financial compensation
    2.    In compensation terminology, what does “total rewards” mean?
    •    Includes everything the employee perceives to be of value resulting from the employment relationship
    3.    What are the mandated or legally required benefits? Briefly describe each.
    •    Social security – a system of retirement benefits
    i.    Disability insurance- protects employees against loss of earnings resulting from total incapacity
    ii.    Survivors’ benefits – provided to certain members of an employee’s family when the employee dies, paid to widow or widower and unmarried children
    iii.    Medicare – provides hospital and medical insurance protection for individuals 65 years of age and older and for those who have become disabled
    •    Unemployment compensation – unemployment insurance provides workers who jobs have been terminated through no fault of their own monetary payments for up to 26 weeks or until they find a new job
    •    Workers’ Compensation – benefits provide a degree of financial protection for employees who incur expenses resulting from job-related accidents or illnesses
    4.    What are the basic categories of discretionary benefits? Describe each.
    •    Payment for Time Not Worked – employers recognize that employees need time away from the job for many purposes
    •    Health Care – employers using programs to manage costs, such as consumer-driven plans, to give employees financial incentives to use health care service efficiently
    •    Life Insurance – protects the employee’s family in the event of his or her death
    •    Retirement Plans – Plan to pay retiree
    •    Employee Stock Option Plans –defined contribution plan in which a firm contributes stock shares to a trust
    •    Employee services – variety of benefits ranging from child care, education assistance, food services/subsidized cafeterias, scholarships for dependents, relocation benefits
    5.    What items are included in the discretionary benefit of payment for time not worked?
    •    Paid vacations
    •    Sick pay and paid time off (PTO)
    •    Sabbaticals – temporary leaves of absence
    6.    Define each of the following:
    •    Health maintenance organization (HMO) – cover all services for a fixed fee but exercise control over which doctors and health facilities a member may use
    •    Preferred provider organization (PPO) – are managed-care health organizations in which incentives are provided to members to use services within the system; out-of-network providers may be used at greater cost
    •    Point-of-service (POS) – requires a primary care physician and referrals to see specialists, as with HMOs but permits out-of-network health care access
    •    Exclusive provider organization (EPO) – offer a smaller PPO provider network and usually provides little, if any, benefits when an out-of-network provider is used
    •    Health Savings Account (HSA) – tax-free health spending and savings accounts available to individuals and families who have qualified high-deductible health insurance policies as determined by IRS regulation
    •    Flexible Spending Account (FSA) – benefit plan established by employers that allows employees to deposit a certain portion of their salary into an account (before paying income taxes) to be used for eligible expenses
    7.    There are numerous forms of retirement plans. Describe each of the following:
    •    Defined Benefit Plan – retirement plan that provides the participant with a fixed benefit upon retirement
    •    Defined Contribution Plan – retirement plan that requires specific contributions by an employer to a retirement or savings fund established for the employee
    •    401(k) plan – defined contribution plan in which employees may defer income up to a maximum amount allowed
    •    Cash balance plan – retirement plan with elements of both defined benefit and defined contribution plans
    8.    What is an employee stock option plan?
    •    defined contribution plan in which a firm contributes stock shares to a trust
    9.    What are topics included within employee services
    •    child care
    •    education assistance
    •     food services/subsidized cafeterias
    •    scholarships for dependents
    •    relocation benefits
    10.    Why have some firms gone to voluntary benefits as opposed to discretionary benefits?
    •    In discretionary benefits the cost is shouldered totally or partially by the company. While voluntary benefits reduce costs, because although they 100% paid by the employee, the employer typically pays the administrative cost.
    11.    What is a customized benefit plan?
    •    Benefit plan that permits employees to make yearly selections to largely determine their benefit package by choosing between taxable cash and numerous benefits
    12.    Distinguish among premium pay, hazard pay and shift differential pay?
    •    Premium pay – compensation paid to employees for working long periods of time or working under dangerous or undesirable conditions
    •    Hazard pay – additional pay provided to employee who work under extremely dangerous conditions
    •    Shift differential – additional money paid to employees for the inconvenience of working less-desirable hours
    13.    Define each of the following benefit laws:
    •    Consolidated Omnibus Budget Reconciliation Act (COBRA) – of 1985 enacted to give employees the opportunity to temporarily continue their coverage, which they would otherwise lose because of termination, layoff, or other changes in employment status
    •    Health Insurance Portability and Accountability Act (HIPAA) – of 1996 provides protections for American who move from one job to another, who are self-employee or who have preexisting medical conditions, in which it makes health insurance portable and continuous for employees and eliminates the ability of the insurance company to reject coverage for individuals with preexisting medical conditions
    •    Employee Retirement Income Security Act (ERISA) – of 1974 ensures that when employees retire, they receive deserved pensions
    •    Older Workers Benefit Protection Act (OWBPA) – of 1990 prohibits discrimination in the administration of benefits on the basis of age, but also permits early retirement incentive plans as long as they are voluntary
    •    Pension Protection Act (PPA) – of 2006 seeks to ensure the employers make greater contributions to their pensions funds, ensuring their solvency, and avoiding a potential multibillion dollar taxpayer bailout of the Pension Benefit Guaranty Corporation (PBGC)
    •    Patient Protection and Affordable Care Act – of 2010 requires individuals to have health insurance coverage by 2014 and those who don’t have to pay a penalty
    14.    Why is it important to communicate information about the benefits package?
    •    Since employee benefits can help a firm recruit and retain top-quality workforce. In keeping the program current management depends on an upward flow of information from employees to determine when benefit changes. Simultaneously because employee awareness of benefits is limited the program information must be communicated downward.
    15.    What are the components of nonfinancial compensation?
    •    Job itself as a nonfinancial compensation factor
    •    Job environment
    16.    Explain the difference between the job itself as a nonfinancial compensation factor and the job environment as a nonfinancial compensation factor.
    •    Job itself – whether the job is meaningful and satisfying, there is recognition for accomplishment, feeling of achievement, possibility of increased responsibility, opportunity for growth and advancement, enjoy doing the job
    •    Job environment – the physical environment being satisfying through sound policies, capable managers, competent employees, congenial co-workers, appropriate status symbols and working conditions
    17.    Define each of the following workplace flexibility factors:
    •    Flextime –practice of permitting employees to choose their own working hours within certain limitations
    •    Compressed work week –any arrangement of work hours that permits employees to fulfill their work obligation in fewer days than the typical five-day work week
    •    Job sharing –two part-time people split the duties of one job in some agreed-on manner and are paid according to their contributions
    •    Telecommuting – work arrangement whereby employees, called “teleworkers” or “telecommuters” are able to remain at home (or otherwise away from the office) and perform their work using computer other electronics devices that connect them with their offices.

    Chapter 11 – A Safe and Healthy Work Environment
    1.    What has been the impact of smoking and the workplace?
    •    Smoking is an economic burden on employees who are recognizing the value of providing smoking-cessation benefits. Having a smoke-free workplace policies helps to fulfills an employer’s legal obligation to provide a safe workplace under OHSA’s general duty clause. Workplace smoking is not only hazardous to employees’ health but is also detrimental to the firm’s financial health
    2.    Define safety and health.
    •    Safety – protection of employees from injuries caused by work-related accidents
    •    Health – employees’ freedom from physical or emotional illness
    3.    What is the purpose of the Occupational Safety and Health Act?
    •    OSHA aims to ensure worker safety and health in the US by working with employers and employees to create better working environments
    4.    What are the primary ways in which safety programs are designed? Discuss.
    •    Focusing on unsafe employee actions – want to create psychological environment and employee attitudes that promote a safety. Attitude must permeate the firm’s operations and a strong company policy emphasizing safety and health is crucial
    •    Focusing on unsafe working conditions – is to develop and maintain a safe physical working environment, altering the environment is becomes the focus for preventing accidents
    5.    What is the purpose of the job hazard analysis?
    •    Multistep process designed to study and analyze a task or job and then break down that task into step that provide a means of eliminating associated hazards
    •    Effective and useful tool to isolate and address safety issues and risks
    6.    What is the purpose of the Superfund Amendments Reauthorization Act, Title III (SARA)?
    •    Requires businesses to communicate more openly about the hazards associated with the materials they use and the produce and wastes they generate.
    7.    Why are companies concerned with repetitive stress injuries? What is carpal tunnel syndrome?
    •    repetitive stress injuries – group of conditions cause by placing too much stress on a joint when the same action is performed repeatedly
    •     carpal tunnel syndrome – caused by pressure on the median nerve that occurs as a result of narrowing of the passage way that houses the nerve
    8.    Define ergonomics. What is the purpose of ergonomics.
    •    Ergonomics – Process of designing the workplace to support the capabilities of people and job/task demands
    •    Purpose to fit the machine and work environment to the person, rather than require the person to make adjustment
    9.    What effect does work place and domestic violence have on an organization?
    •    1.7 million workers are injured each year and more than 800 dies as a result of workplace violence
    •    Workplace must take action against pervasive problems that can inflict havoc day in and day out
    10.    Why should a firm attempt to identify stressful jobs?
    •    Because stress can have potential consequences and if its severe enough and persists long enough it can be harmful. Can be disruptive to an individual as any accident. Result in poor attendance, excessive use of drugs and alcohol, poor job performance and poor health.
    11.    Why should firm be concerned with employee burnout?
    •    If a person loses their enthusiasm for their job, it can become contagious and transform an entire group to burnouts.
    •    Results in reduced productivity, higher turnover and lousy performance
    12.    What are the purposes of wellness programs?
    •    Boost productivity, reduce absenteeism lower turnover and recruiting costs and improve morale
    •    Looking to solve chronic lifestyle diseases in employees and improve the health of workers
    13.     Why might physical fitness programs be established in organizations?
    •    Critical to career success
    •    Help to prevent obesity, hypertension, heart disease, diabetes, anxiety, depression and certain types of cancer
    •    Prevent loss of productivity resulting medical problems
    •    Reduce absenteeism, accidents and sick pay
    14.    What is the purpose of substance-abuse-free workplaces in organizations?
    •    Substance abusers have higher rates of absenteeism and employee turnovers which rates management problems for employers
    15.    What are the steps for establishing a substance-abuse-free workplace?

    •    Establish a drug and alcohol free policy
    •    Provide education and training
    •    Implement a drug testing program
    •    Create an employee assistance program
    16.    What is an employee assistance program?
    EAP is a comprehensive approach that many organizations have taken to deal with burn, alcohol and drug abuse and other emotional disturbances
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