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Unformatted text preview: QUIZ 2 H ADM 211 HUMAN RESOURCE MANAGEMENT FALL 2007 CHAPTER 9 MANAGING COMPENSATION TA: Chelsea ( Identify a few potential positions that you would like to have once you graduate. Go to the U.S. Department of Labor: Bureau of Labor Statistics website ( Extract all of the wage information that the U.S. Department of Labor provides on their website for one of the potential positions you would like to have once you graduate (referred to as job 1 below). 1. A. Report all of wage information extracted from the U.S. Department of Labor: Bureau of Labor Statistics for job 1 (include website addresses used). 11-9081 Lodging Managers: Plan, direct, or coordinate activities of an organization or department that provides lodging and other accommodations. Exclude "Food Service Managers" (11-9051) in lodging establishments. Employment estimate and mean wage estimates for this occupation: Employment RSE (3) 1.7 % Mean hourly wage $23.83 Mean annual wage (2) $49,560 Employment (1) 31,300 Wage RSE (3) 1.0 % Percentile wage estimates for this occupation: 50% (Median) $20.35 $42,320 Percentile Hourly Wage Annual Wage (2) 10% $12.08 $25,120 25% $15.32 $31,870 75% $28.07 $58,380 90% $39.67 $82,510 B. Provide a detailed explanation of job 1 (including job title, company name, company location, company size, etc.) I will work for Marriott Hotels & Resorts International in their rooms & operations division. Corporately located in Washington D.C., for job 1 will be working as a lodging manager at the Marriott Boston Copley Place Hotel in Boston, MA. Marriott International is a world-wide hospitality company comprising of 15 brands, 2,800 hotels, and approximately 515,000 rooms. The hotel that I will be working at is an 1,100 room property in the center of Boston, MA in the Copley Square shopping district. Note: Bring to Quiz 2 a single sheet of paper with you answers to parts A and B. C. Imagine that when you are hired for job 1 you are offered a wage that is 40 percent less than the national mean annual wage for the job. Prepare a written document for your new boss explaining why you believe the company's wage offer is too low. In this written document for your new boss state what you believe your starting wage should be; clearly explain how you determined (and provide support for) your proposed starting wage for job 1. Dear New Boss, The fact that the company is offering me a wage that is 40 percent less than the national mean annual wage for this position is unacceptable. I believe that my starting wage should at least meet the national average 1 annual wage for this position, which is $49,560, for several reasons. As a graduate of the Hotel School at Cornell University, I have already had a lot of hands-on experience in operations and many other aspects of the industry. Consequently, I am a more valuable asset to your company than the average student out of college, and should be paid accordingly. Additionally, according to the ONET Reports, the position of lodging manager is an "in-demand occupation". (LINK) Judging by this fact, I should not be paid lower than the national average, but actually higher than the average because the current market conditions suggest there is a need for this position. National average and why your wages shouldn't be less...say what your wage should be Cornell Hotel degree Why are you an asset to this organization Current market conditions? 1. CHAPTER 10 PAY-FOR-PERFORMANCE: INCENTIVE REWARDS TA: Mark ( Describe the incentive plan that would benefit you the most; be sure to define and fully describe all types of incentive techniques, payments, etc. included in the plan. In order to have a truly beneficial incentive plan, I would combine an individual incentive plan with an enterprising incentive plan; more specifically, I would combine a bonus incentive plan with a profit sharing plan. A bonus--which is given to an employee beyond his/her normal base wage--would be an effective individual incentive plan because it would provide me with more pay for exerting greater effort, while at the same time I still would have the security of a base wage salary. While bonuses used to be reserved for management and executive positions, today companies are awarding bonuses to employees throughout the organization. If the bonus is given to a lower level employee, it should be based on components like cost reduction, quality improvement, or performance criteria established by the organization. Page 443 To maximize the effectiveness of the incentive program, the individual bonuses awarded should be coupled with a profit sharing plan, which is intended to give employees the opportunity to increase their earnings by contributing to the growth of their organization's profits. Profit sharing can help stimulate employees to think and feel more like partners in the enterprise and thus will motivate them to improve product quality, reduce operating costs, improve work methods, etc. Most plans call for about 20 to 25 percent of the net profit to be shared, and can be distributed on an equal basis, on regular salaries, or some formula taking into account seniority and/or merit. Page 458 Question 2 is from Homework Case 1 entitled "Performance-Based Pay at Hotel Y" 2. A. Describe what you believe would be an effective incentive plan for the accounts receivable department at Hotel Y; be sure to provide support for your proposed incentive plan. Link pay to performance (currently each employee is receiving $25,000 regardless of performance) Easy to do because we have a clear goal: increasing accounts receivable turnover Use team compensation (because the job requires a collaborative team effort) Gainsharing based on performance (for example, implementing the Scanlon Plan--a bonus incentive plan using employee and management committees to gain cost-reduction improvements--is a way that the organization could collaboratively find ways to reach goal) Rely on employee suggestions for cost saving and productivity improvements excellent way to tie individual incentives Promote teamwork, not competitiveness Good because won't cost the company anything unless they reach their goal B. Explain how Hotel Y should implement your proposed plan? Make sure the employees understand the system and know what is expected of them Get the employees' feedback (through carefully implementation of Gainsharing plan) If they don't value the plan, then they're not motivated, won't perform Understand that implementing a Gainsharing plan doesn't stimulate cooperation directly C. Imagine that Hotel Y has implemented your proposed incentive plan for its account receivable department. Describe how Hotel Y should assess the effectiveness of your proposed incentive plan. Assess both quantitatively and qualitatively 2 Quantitative--has your accounts receivable turnover and absenteeism decreased? Refer to the billing cycle, cash flow statements to specifically assess the numbers Qualitative--are the employees motivated, happy? make sure they are offering feedback, suggestions and you are implementing them as manager Homework Case 1 Performance-Based Pay at Hotel Y Moral and productivity are low and absenteeism and turnover are high - in the accounts receivable department at Hotel Y. Hotel Y loses about half of the department's 10 employees to local competitors each year. The department's 10 employees are struggling to learn how to use a new billing system, and it takes more than 100 days to receive payment after bills are sent out. The hotel needs to shorten the billing cycle and improve cash flow. As demonstrated below, the length of time needed to collect bill payments affects cash flow. For example, if the average number of days a bill spent in accounts receivable fell from 100 to 95 days + $5,000 per year 90 days - + $12,000 per year 85 days - + $25,000 per year 80 days - + $40,000 per year 75 days - + $65,000 per year 70 days - + $75,000 per year 65 days - + $80,000 per year The department's goal is to reduce the time needed to collect bills to 75 days by the end of 2008 and to reduce the time to collect bills to 65 days by the end of 2009. To meet the department's goals the 10 employees would have to work together to process each bill efficiently. The hotel needs to motivate its employees to work together to achieve the department's goals. Furthermore the hotel must establish a clear line of sight between the employees' work and the hotel's goals. Currently, the department's 10 employees each receive an annual salary of $25,000 (slightly lower than the industry average for the job). Hotel Y needs an incentive plan that recognizes individual contributions, motivates employees to work together, and rewards the achievement of departmental goals CHAPTER 11 EMPLOYEE BENEFITS TA: Alison ( What can management do to increase the value to the organization of the benefits provided to employees? 1. Benefits should be aligned with organization's strategy (based on specific objectives) Make sure benefits are valuable to employees improve their work satisfaction, meet their health/security requirements, motivate them Recognize what employees need by conducting consultations/surveys w/ the employees find out what they value Give the employees choice with the benefits offered flexible benefit plans like cafeteria benefit plans (enable individual employees to choose the benefits that are best suited to their particular needs p. 473) Benefits should control cost don't offer ones that employees aren't interested, etc. (p. 471-472) Avoid unnecessary benefits that don't fit your work force Question 2 is from Chapter 11, Case 1 (501-502) entitled "Adobe's Family-Friendly Benefits: An Unexpected Backlash". 2. If you were Janis Blancero, how would you resolve this dilemma? Explain. Most important: Figure out how many people she needs and when she needs them Get information from people who want time off and when they want She needs to fairly evaluate all the requests Implement a fair, formal plan with rules so people know when they can request time, etc Make the plan reward good performance provide flex time if you're doing well Could also tell the employees to figure it out amongst themselves? (Not ideal however because could lead to employees believing you don't care about their welfare, etc.) 3. List & describe the 3 employee benefits/services that have the greatest value to you. Explain why you value each of these 3 benefits/services. 3 Vacation with pay essential to the well-being of an employee break from demanding job duties important for maintaining mental health Medical / dental insurance With health costs rising astronomically without insurance, an HMO would be hugely beneficial because it not only covers medical, surgical, and hospital expenses, but also usually covers prescription drug, dental, optical, and mental healthcare costs that would be virtually un-payable without insurance Pre-retirement program useful to help make me aware of the kinds of adjustments that might be necessary in order to save for retirement (which is never too early to plan for) 4. Describe 2 employee services that you believe would enable organizations to meet the demands of their Generation Y employees. Be sure to explain why you believe each of these 2 services would enable organizations to meet the demands of their Generation Y employees. Education-minded value the opportunity to continuous education (maybe provide time for studying, pay for courses related to the job, educational expenditures, graduate school) Flexibility offer flex time to employees Pension-benefits plan: defined contribution plan (likes this plan because Gen Y wants to be in control) [defined contribution plan = a pension plan in which the amount an employee is to receive upon retirement is specifically set forth] Freedom and financial goals to do this, provide employees with paid time off allows them to enjoy being paid with time off to explore other goals CHAPTER 12 SAFETY AND HEALTH Prof. Way ( Question 1 is from end-of-book case 4 (734-735) - UPS: Empowering Employees to Be Safe 1. A. Why was it a good idea for UPS to put its employees in charge of their own safety? It was a good idea because it in empowered the employees. Empowerment is beneficial to the company because the employees have more knowledge about safety elements than manager; they know the best ways to make it safe Makes them feel valued B. They are more likely to buy into the job if they feel in control Reduces chances of company being sued for negligence of safety issues Should all companies make employees responsible for their own safety? What drawbacks do you see to such a plan? C. Yes in theory, BUT you must have procedures in place to ensure safety Be careful drawbacks: not all employees are necessarily going to take the right approach to safety plan because they don't know all the legal implications; may not take the right approach to insurance Letting them decide might make them think the company doesn't care about their safety Tell employees a goal and let them facilitate it (make them partially responsible for their safety) Do you think UPS could empower its employees to improve their performance in other areas of the business? What might those areas be? Yes, as long as the job is getting done correctly other areas Give them empowerment on their schedules Let them figure out the routes with the team; may know traffic/roads better than others Job stress and its negative effect on both employees & the organization are a growing concern for managers & supervisors. Stress management is an important aspect of any manager's job. Answer either question 2 OR question 3. 3. A. Identify the sources of stress in the organization that you worked at in your last internship. o High demand there was always too much to do in too short a time (given many tasks during the day, often multiple tasks to do at once) o Low reward receiving inadequate feedback on performance and no recognition for a job well done (because I was only an intern doing office work tasks like filing, my hard work was often not acknowledge) Eustress positive stress that accompanies achievement and exhilaration; 4 B. Distress harmful stress characterized by a loss of feelings of security and adequacy In what ways do they affect the individual employee? The organization? IndividualAlarm reaction (increased blood pressure, elevated heart rate, increased respiration) Burnout (stage of distress, manifested in depression, frustration, loss of productivity) Distress affects performance Decrease in motivation C. OrganizationEfficiency and productivity decrease Negative atmosphere Lack of communication and teamwork High turnover costs What can managers and supervisors do to make the workplace less stressful? (choose 4 or 5) Build rewarding relationships with co-workers Talk openly with managers or employees about job or personal concerns Prepare for the future by keeping abreast of likely changes in job demands Don't greatly exceed your skills and abilities Set realistic deadlines; negotiate reasonable deadlines with managers Act now on problems or concerns of importance Designate dedicated work periods during which time interruptions are avoided When feeling stressed, find time for detachment or relaxation Don't let trivial items take on importance; handle them quickly or reassign them to others Take short breaks from your work area as a change of pace (p. 539) 1. CHAPTER 13 EMPLOYEE RIGHTS AND DISCIPLINE TA: Nicholas ( A. Can an employee be discharged for off-duty (legal) conduct? Explain Generally, legal authorities conclude that an employer cannot discharge an employee because of off-duty conduct, BUT... YES, can discharge IF employer has made a clear relationship between the misconduct/(legal) off-duty conduct and its negative effect on the employer or other employees in the organization P. 566 Employer has communicated clearly to the employees the policies regarding (legal) off-duty conduct and discharge If you have a written, proper document stating the policies that were not followed: Document has to be clear and understood by all employees (i.e. in different languages), simple to understand, and be visible / available to all employees B. When do you think it is reasonable for an employer to want to discharge an employee for (legal) off-duty conduct? Explain. Reasonable if employee's behavior was threatening or created a hostile work environment If employees feel as if they are in danger, tension productivity is disrupted and grounds for discharge GENERAL reasons: when it affects the company in a negative way, affects public appearance, proprietary/confidentiality breaches A discharge is valid only if: a) b) c) d) e) f) g) The employee was forewarned of the consequences of their actions The management's request reasonable for a safe and orderly workplace Employer made a reasonable effort to establish that employee's behaviors weren't acceptable Organization's investigation of issue was objective and fair Investigation provided sufficient evidence against employee's actions proving misconduct Employer has treated similar scenarios same with what is currently being investigated Employee's misconduct fit already established rules 2. Define the employment-at-will doctrine. What are the three major court exceptions to the doctrine? Assumes that an employee has a right to sever the employment relationship for a better job opportunity or for other personal reasons. 5 Likewise, employers are free to terminate the employment relationship at any time--and without notice--for any reason, no reason, or even a bad reason hypothetically. This is why it is often said that the employee is "at the will" of the employer. Free to enter into contract without obligation to employee or employer... Be careful in case you get sued... (guard against "without reason" clause) 3. 3 major court exceptions to the employment-at-will doctrine are: violation of public policy, implied contract, and implied covenant. o violation of public policy occurs when an employee is terminated for refusing to commit a crime, for reporting criminal activity to the government, for disclosing illegal, unethical practices of employer, or for exercising employment rights o implied contract occurs when employee are discharged despite the employer's promise (expressed or implied) of job security or contract to established termination procedures o implied covenant occurs when a lack of good faith and fair dealing by the employer has been suggested (by inflicting harm without justification, the employer violates the implied covenant) Discuss why documentation is so important to the disciplinary process. What constitutes correct documentation? the failure of managers to record employee misconduct accurately can result in the reversal of any subsequent disciplinary action the maintenance of accurate and complete work records is essential, and is constituted by the inclusion of: Date, time, location of the incident Negative performance or behavior exhibited by the employee--the problem Consequences of the action or behavior on the employee's overall work performance and/or the operation of the employee's work unit Prior discussion with the employee about the problem Disciplinary action to be taken and specific improvement expected Consequences if improvement is not made, and a follow-up date The employee's reaction to the supervisor's attempt to change behavior The name of witnesses to the incident (if appropriate) Question 4 is from End-of-Book Case 11 (750-752) "OK Who's Telling the Truth?" 4. Does the concept of progressive discipline require an employer to precede a discharge with a written warning and then a suspension without pay? Explain. By definition, YES Typically with this form or discipline, a written warning and then a suspension without pay precede a discharge of the employee. 4 steps to progressive discipline: oral warning, written warning, suspension without pay, discharge Steps are designed to motivate an employee to correct his or her misconduct voluntarily through the application of corrective measures by increasing degrees Warnings must be issued before discharge because employee need to know where they stand regarding offenses, know what improvement is expected of them, and understand what will happen next if improvement is not made. Exceptions: if the action was so severe that you wouldn't need to take these steps. In the case of sexual harassment, fights, stealing, 4 steps need not be followed. HR IN ALIGNMENT 1 REALIGNING HR PRACTICES AT EGAN"S CLOTHIERS TA: Kevin ( Question 1 is from End-of-Book Case 6 (737-740) "Realigning HR Practices at Egan's Clothiers" 1. A. Explain the system of HR practices you believe Egan's Clothiers should implement? Be sure to explain why you include each HR practice in your recommended system. Note: To answer question 1A you are likely to use much of the same information that you used to answer the first three questions from the Egan's Clothiers case. Some key terms: Internal alignment; criterion contamination; criterion deficiency. B. How do you account for the fact that absenteeism has decreased at Egan's while turnover has increased? SYSCO - HR IN ALIGNMENT 2 TA: Kate ( 6 A. According to Ken Carrig (Senior Vice President and Chief Administrative Officer of SYSCO Corporation), what is the future of HR? Explain. (25 points) The future of HR is looking at where SYSCO can add value internally to its organization and externally to their customers. HR cannot just look at SYSCO's operations; it has to look at the customers they are serving. By also looking at its customers, HR is not just focused on employment costs; it is also focused on figuring out how its HR practices and policies can add value to their customers. B. According to Rick Schnieders (Chairman and Chief Executive Officer of SYSCO Corporation), what does it mean to communicate backward and forward? (25 points) Communicating backward and forward means that everyone in the company knows his or her role, understands what tasks he or she is meant to perform, and is aware of how these tasks are related to the overall strategy of the company. In this way, communicating backward and forward enables employees to feel as though they are an integral part of the company. C. What is activity-based pay, for example, as applied to drivers, and how does it work? (10 points) Activity-based pay is when employees are paid based on how well they complete the activities that are responsible for their performance. In some cases, productivity levels are used to determine pay. It is not about paying employees for how long they work; it is more about paying employees for how much they get done. Activity-based pay is used to drive performance in certain positions. It works by paying employees more for completing more tasks and by making employees try and manage their workloads. For example, the drivers at SYSCO try and manage their workload (through figuring out the best routes) in order to get paid more. They understand that the "more they hustle, the more money they get." D. In addition to work climate/employee satisfaction what other two human capital metrics does SYSCO focus on? (10 points) The other two capital dimensions that SYSCO focuses on are productivity and retention of its employees. Productivity looks at how many employees are working per 100,000 cases sold. This also indicates how the work climate is doing. If the employees are satisfied and are productive, SYSCO will look at the third dimension: retention of its employees in warehouse, sales, and finance and administration. They look at retention in each function and then they will combine those retention rates. This is also done in the financial, operational, and customer sides of the company. E. Why are work climate/employee satisfaction scores important to Sysco? (15 points) Work climate/employee satisfaction scores are important to SYSCO because there is a direct correlation between work climate, productivity, retention, and pre-tax earnings and operating expenses: the greater the work climate scores and the higher productivity and retention are, the greater pre-tax earnings are and the lower the operating expenses are. These scores help SYSCO track the alignment of their HR strategy with their overall strategy. As well, these scores have helped SYSCO understand how the human capital metric influences their financial metric. F. In addition to human capital metrics SYSCO uses three key metrics to assess the performance of each of its operating companies. What are they? (15 points) 7 The other three key metrics to assess the performance are the customer, operations, and financials. 8 ...
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This test prep was uploaded on 12/14/2007 for the course H ADM 211 taught by Professor Sway during the Fall '07 term at Cornell University (Engineering School).

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