Running Head: PAID TIME OFFS 1
PAID TIME OFFS 9
Paid Time off (PTO) Policies
Jesse Heineken
Human Resource Management & Talent Development
September 4, 2013
Jesse, take the a moment and review the comments and markups and instructions for this assignment. Your work is below with a breakdown of your points.
Dr. Dale
As the HR Director, respond to the following issues:
· Identify any additional information you would need to recommend a solution, and explain where you would likely find that information.
· Discuss any issues you would likely encounter if you were to merge the PTO system to a traditional leave system. Explain which issues would be difficult to solve and why.
· Explain any problems you see with leaving the two systems in place, and identify which system would be assigned for new employees.
· Make a recommendation for one common PTO system. Explain your system and why you think this system is the best system for the company.
Assignment 2: Case study—Paid Time Off (PTO) Policies
PTO policies have become good tools for HR staff to use in terms of organizational incentives. Use the Argosy University online library and your textbooks to read about PTO policies. Now, let us go back to Company A and Company B from Module 1.
While reviewing the information from the two merged companies, the HR Director has found out that each company has two different PTO policies.
Company A has a PTO system in which employees are given 30 days of paid time off each year, which accumulates at the rate of 2.5 days a month. Under this policy, vacation and sick leave are all rolled into one paid leave and any absence whether scheduled, such as vacation, or unscheduled, such as sick leave, are taken from the accumulated leave the employee has earned.
Company B has a more traditional leave system in which employees are given 12 days of vacation, 10 days of sick leave and 10 holidays. The company is closed on those holidays. Vacation is accumulated at a day per month. Sick leave has an unlimited accumulation, but unlike vacation would not be paid out upon termination of employment.
Since the employees of the merged company will be working side by side, the HR Director has asked you to review the situation and make recommendations for a solution.
Instructions:
As the HR Director, respond to the following issues:
· Identify any additional information you would need to recommend a solution, and explain where you would likely find that information.
· Discuss any issues you would likely encounter if you were to merge the PTO system to a traditional leave system. Explain which issues would be difficult to solve and why.
· Explain any problems you see with leaving the two systems in place, and identify which system would be assigned for.
Introduction to ArtificiaI Intelligence in Higher Education
Running Head PAID TIME OFFS .docx
1. Running Head: PAID TIME OFFS
1
PAID TIME OFFS
9
Paid Time off (PTO) Policies
Jesse Heineken
Human Resource Management & Talent Development
September 4, 2013
Jesse, take the a moment and review the comments and markups
and instructions for this assignment. Your work is below with a
breakdown of your points.
Dr. Dale
As the HR Director, respond to the following issues:
· Identify any additional information you would need to
recommend a solution, and explain where you would likely find
that information.
· Discuss any issues you would likely encounter if you were to
merge the PTO system to a traditional leave system. Explain
which issues would be difficult to solve and why.
2. · Explain any problems you see with leaving the two systems in
place, and identify which system would be assigned for new
employees.
· Make a recommendation for one common PTO system. Explain
your system and why you think this system is the best system
for the company.
Assignment 2: Case study—Paid Time Off (PTO) Policies
PTO policies have become good tools for HR staff to use in
terms of organizational incentives. Use the Argosy University
online library and your textbooks to read about PTO policies.
Now, let us go back to Company A and Company B from
Module 1.
While reviewing the information from the two merged
companies, the HR Director has found out that each company
has two different PTO policies.
Company A has a PTO system in which employees are given 30
days of paid time off each year, which accumulates at the rate
of 2.5 days a month. Under this policy, vacation and sick leave
are all rolled into one paid leave and any absence whether
scheduled, such as vacation, or unscheduled, such as sick leave,
are taken from the accumulated leave the employee has earned.
Company B has a more traditional leave system in which
employees are given 12 days of vacation, 10 days of sick leave
and 10 holidays. The company is closed on those holidays.
Vacation is accumulated at a day per month. Sick leave has an
unlimited accumulation, but unlike vacation would not be paid
out upon termination of employment.
Since the employees of the merged company will be working
side by side, the HR Director has asked you to review the
situation and make recommendations for a solution.
Instructions:
As the HR Director, respond to the following issues:
· Identify any additional information you would need to
3. recommend a solution, and explain where you would likely find
that information.
· Discuss any issues you would likely encounter if you were to
merge the PTO system to a traditional leave system. Explain
which issues would be difficult to solve and why.
· Explain any problems you see with leaving the two systems in
place, and identify which system would be assigned for new
employees.
· Make a recommendation for one common PTO system. Explain
your system and why you think this system is the best system
for the company.
Include two to three scholarly references in your response.
Write a five-to-seven-page memo to the company’s Chief
Executive Officer (CEO). Apply APA standards to citation of
sources.
Use the following file naming convention:
LastnameFirstInitial_M2_A2.doc. By Wednesday, September
11, 2013, deliver your assignment to the M2: Assignment 2
Dropbox.
Assignment 2 Grading Criteria
Maximum Points
Identified information that is relevant and logical for
recommending a PTO solution, and provided clear and rational
ideas for where the information would likely be found.
10/16
Needs further development
Discussed relevant issues that could likely be encountered upon
merging the PTO system with the traditional leave system.
Supported the explanation of difficult issues by sound reasoning
and evidence from scholarly resources.
20/24
Needs further development
Assessed various challenges that would logically emerge from
having two separate PTO systems in one company; provided a
thorough analysis of which system would be assigned for new
employees.
4. 10/16
Needs further development
Recommendation for the system that would be most beneficial
to the newly merged organization is clear, specific, and based
on scholarly research and industry best practices.
24/32
Needs further development
Wrote in a clear, concise, and organized manner; demonstrated
ethical scholarship in accurate representation and attribution of
sources; and displayed accurate spelling, grammar, and
punctuation.
8/12
Review your work before submitting to avoid errors
Total:
74/100
In an organization, employees may receive compensation
benefits as for time offs. They may include sick leave, personal
leave, vacations, holidays and even sabbaticals. Employers are
aware that their employees need a break. Different
organizations have different PTO policies. Paid time off can be
defined as any time which is not worked, but is paid. Although
these plans are costly to companies, they view these plans as
employee friendly. Companies try to offer the best plans, which
are very competitive in attracting and retaining the talented
workforce (Smith, 2012).
Most of The employers prefer to come up with paid time off
plan. This creates a flexible arrangement that allows the
employee to use his/her off days at his/her discretion. The
amount of days off accumulates through the years of service,
and his/her position in the organization. Some companies allow
their employees to carry their unused leave days for the next
period. Some companies pay cash for their employees leave
days while others insist those days to be taken as stipulated.
Organizations are very concerned about the effects of these
vacations and areas of customer service, staffing, productivity
5. and operating continuity. Most human resource managers
require employees to get clearance from their respective
organizations human resource department (Milkovich, 1999).
As the human resources director, this situation will be very
tricky. The merger poses a compensation challenge terms of the
listed paid time off policies. Company employeesCompany
employees might want to keep their policy paid time off plans,
whereas company Company B might think their terms were the
best. There is the risk of paid time off crisis. Apart from the
above provided information about the leave policy of the
company, there is also need for information about the number of
employees, their levels of work, and their pending off days.
Information about their rates of payments is also lacking. These
different companies might have had different pay rates for the
same job levels (Smith, 2012).
The details about this required information, which has not been
provided in the policy plans, can be assessed from their former
personnel office and accounting department. Personnel
department in this case used to deal with employee
compensation data and accounts department used to calculate
these benefits and convert them to monetary terms.
Issues
Merging of this two companies means that all departments also
need to merge. I will be working to merge the paid time off and
the traditional systems existing in both companies. This
exercise will not be smooth as most issues are going to arise.
These issues will range from when to payment of benefits, the
criteria used to calculate these benefits, the time period taken to
utilize these offs, the pay rate adjustment from the one which
was existing, the limits of these offs, and the overall benefits
accrued after employment termination.
When to pay benefits
The two companies had different PTO policies about when to
pay these benefits. As the human resource director, I will face
the challenge of reaching a deal which will be beneficial to all
parties. Employees from company Company A were paid their
6. benefits yearly, whereas their partners in company Company B
were paid their off benefits monthly. This issue will be
difficult to solve as some parties might want to retain their own
way of payment, which they might argue that it will deem best
for them.
Criteria to calculate benefits
Employees from the two companies might challenge the adopted
merger criteria for calculation of their benefits. Though this
might prove to be a challenge, I might call some of their
representatives and explain to them the adopted one and why it
was adopted. As the human resources director, I will work
towards the best agreement for the employees. The company
might also work at minimizing the labor costs while maximizing
the productivity of the employees.
When to take this offs←(Paid Time Off (PTO)
The time designated for these paid time offs will also be an
issue. For instance, employees for company Company A used to
utilize their PTOs on a yearly basis, whereas company Company
B employees spent them on a monthly basis. One time might
feel their time period was better than the other party. Employees
from company Company B might also feel their plan was the
best as they did not accumulate these PTOs. This will also be a
difficult issue, but we will try to harmonize and encourage most
employees to take their PTOs at low work. This will be aimed at
minimizing the labor costs when the work levels are low.
Pay rate adjustment Issue
This will be a critical issue. Most employees value their pay
more than their working conditions. The two company’s
employees will be bargaining for more pay than what they were
earning at their previous single companies. Though they might
want the company to raise their rates, the management might
even be planning to slash them. A committee will have to form
to look into this matter as it is not a light matter. The personnel
department will work for the best interests of the employees,
through negotiating better pay rates.
7. Conditions attached to PTOs
These offs have conditions. Though some conditions might be
existing in both companies, and they do not favor most of the
employees, they will try to downplay them. For instance, it was
company Company A policy that both vacation and sick leave
were rolled out in one paid leave. Absence, whether scheduled
or unscheduled were taken from accumulated leave the
employee had earned. In Ccompany B, sick leave had unlimited
accumulation, but it is not paid upon the end of employment.
These conditions will be analyzed and integrated to produce a
mix which will aid the employees in achieving optimal benefits
attached to these PTOs.
These new systems cannot run parallel in this one company. As
a merger, the company will now need a PTO policy which is
same for all employees working in the merger. Some problems
might arise if the two systems operate. Apart from running a
costly human resource benefit system, there will be problems
with employees operations. One section of the employees
operating under a particular system might feel discriminated.
This feeling might fuel un-cooperation in the work processes
and create divisions in the workforce. This might lead to low
productivity, and in extreme cases it can lead to industrial
actions. Employees might term such actions as unfair thus
negative merger publicity (Smith, 2012).
All new employees will be direct to the PTO system which was
used by Company A. New employees cannot be expected to take
leave their first months as they are still trying to catch up with
the organization policies and month long offs might cause their
learning interruption.
I would recommend the one PTO system which was used by
Company A. which involved employees getting 30 days of paid
time off, each year. There are so many benefits attached to these
PTOs. To employees, they feel that they are entitled use PTO as
adults, at their own will, with no restrictions. Employees are
also realizing that paid time offs come with certain flexibility.
8. Employees appreciate this flexibility and tend to be more loyal
to their organizations as they feel that they are valued.
To employers, paid time offs will be set in a manner to protect
the company work load and customer service. This occurs
whereby employees are required to request, a two days work
notice, prior to being away. This gives the employer some
control over unscheduled absenteeism, which is very costly to
most of organizations. PTO plans are more advantageous than
the traditional off time plans. As employees do not take any
time they feel and pretend to be sick. This creates healthy
behavior among the employees and minimizes the cost
associated with employee absence.
The drawbacks associated with PTO system are that employees
can come to work even if they are unwell. They do this to
preserve their off PTO days. This is risky for the both parties.
An employer can be sued for keeping sick employees at work.
For the employee, his/her healthy can deteriorate or might cause
an accident if he operates machinery. Another disadvantage of
this system is that an employer might limit the PTO days by
employee; thus she will be accumulating her PTO slowly than
the long term employees. Employees on other hand might try to
utilize all their time off, which might not even be existing
(Jackson, 2011).
Our merger can actually benefit from this PTO approach if we
put into task the cost saving practices adopted by successful
organizations. The approach is not one sided as most employees
will benefit from the accumulated PTO days (Smith, 2012).
9. References
Jackson, S. E., Schuler, R. S., & Werner, S. (2011). Managing
human resources. CengageBrain. com.
Milkovich, G. T., Newman, J. M., & Milkovich, C. (1999).
Compensation. T. Mirror (Ed.). Burr Ridge, Ill.: Irwin/McGraw-
Hill.
Smith, W. W. (2012). Paid Time Off Policies: A Review and
Analysis (Doctoral dissertation, Minnesota State University
Moorhead).
Required readings:
·
· From Managing human resources: Productivity, quality of
work life, profits (9th ed.), read the following chapters:
· The legal context of employment decisions
· Procedural justice and ethics in employee relations
· Safety, health, and employee assistance programs
Unit 3: Module 3 (Sep 12 - Sep 18)
Module 3 Overview
10. This module focuses on specific civil rights and labor laws that
govern HR policies and practices. You will also explore legal
and ethical issues based on a scenario.
In Module 1, we discussed the four forces that shape HR
strategies:
· Social
· Technological
· Economic
· Political
Federal, state, and local laws affect all of these domains, and
your understanding of legal and governmental mandates and
standards is vital to formulating a viable HR strategy.
Many legislative and legal constraints affect business policies
and HR planning. Understanding these issues can help avoid
financial and legal issues in the future. For example, is an
employee with diabetes who takes daily insulin protected by the
Americans with Disabilities Act (ADA)? The answer is yes (The
U.S. Equal Employment Opportunity Commission, 2008). If
your managers fail to understand the ramifications of this detail,
they could (even inadvertently) harass or otherwise discriminate
against an employee who may file a complaint with the Equal
Employment Opportunity Commission (EEOC). Your
organization then may incur legal expenses to defend or settle
the dispute, all of which could be very expensive.
We will examine some of the major federal laws that impact HR
on the following pages. You may also wish to explore the
resources provided by SHRM and ASTD for best practices and
benchmarks in civil rights and labor laws. HR professionals
could refer to these sources for talent management as well.
Strategic HR addresses legal and regulatory issues in terms of
planning and policy. It helps guide businesses and organizations
through red tape and encumbrances.
In the first assignment in this module, you will discuss the
federal, state, and local laws that drive HR policies, procedures,
and practices. The second assignment will be your first
11. Required Assignment of this course. You will identify ethical
and legal issues involved in a merger and develop a plan to
resolve these issues.
The U.S. Equal Employment Opportunity Commission.
(2008). The ADA: Your responsibilities as an employer.
Retrieved fromhttp://www.eeoc.gov/facts/ada17.html
Using the navigation on the left, please proceed to the next
page.
· Incorporate strategic human resource management principles
in the development of programs that meet organizational needs
and enable the organization to maintain a competitive
advantage.
· Distinguish between ethical and unethical behavior given
certain organizational circumstances (both domestic and
international) based on knowledge of basic employment law and
ethical principles.
· Recommend talent management strategies that support the HR
strategic plan and the competitive strategy of the organization.
Unit 3: Module 3 - Civil Rights Laws
Civil Rights Laws
12. Civil rights laws are federal statutes designed to protect races
and/or classes from behaviors (such as discrimination or
harassment) or barriers (such as systemic roadblocks to
advancement or physical access limitations) defined in the
statutes and acts. HR managers should be knowledgeable about
such statutes and acts and should consider the myriad provisions
of these laws while designing the HR strategy. Here are some
highlights.
Title VII of the Civil Rights Act of 1964
Title VII of the 1964 Civil Rights Act prohibits discrimination
against employees on the basis of “race, color, religion, sex, or
national origin” and applies to virtually all businesses in the
U.S. except for those with fewer than 15 employees. This act
established the Equal Employment Opportunity Commission
(EEOC), which is responsible for enforcing anti-discrimination
laws for employees as well as job applicants.
While violations can often be resolved through mediation
overseen by an EEOC representative, unresolved cases can go to
litigation and become extremely costly. Proper treatment of
candidates and employees, complete documentation of the
hiring process, and ongoing maintenance of personnel records
can be significant factors in the prevention of violations, which
can cost organizations time, money, and their reputation.
You can learn more about this act and the EEOC
athttp://www.eeoc.gov/laws/statutes/titlevii.cfm.
http://www.eeoc.gov/federal/training/index.cfm
Age Discrimination in Employment Act of 1967
The Age Discrimination in Employment Act of 1967 (ADEA)
protects workers over 40 from discrimination in terms of hiring,
firing, pay, promotions, or layoffs, and applies to businesses
with 20 or more employees. Those who feel they have
experienced such discrimination must file an EEOC claim
within 180 days. You can find more information about this act
athttp://www.eeoc.gov/laws/types/age.cfm.
Title II of the Genetic Information Nondiscrimination Act of
13. 2008
Title II of the Genetic Information Nondiscrimination Act of
2008 (GINA) prohibits employers from using genetic
information to discriminate against employees or job applicants.
While it may seem that genetic information would be protected
under certain privacy laws, there are legitimate ways that an
employer may become aware of such information (overhearing a
conversation or acquiring DNA data due to the nature of certain
law enforcement jobs). Even if an employer possesses such
genetic information, the company cannot use it in making
employment decisions. You can learn more about GINA
at http://www.eeoc.gov/laws/types/genetic.cfm.
Americans with Disabilities Act of 1990
The Americans with Disability Act of 1990 (ADA) is enforced
by the EEOC and prohibits discrimination of employees or job
applicants with disabilities in the workplace. The law prohibits
harassment of those with disabilities and requires employers to
provide reasonable accommodation to help a disabled person
perform job duties unless such accommodation provides undue
hardship to the employer.
While the ADA does provide definitions for “reasonable” and
“undue hardship,” what is reasonable varies among different
employers. Undue hardship for a small employer is likely
different from undue hardship for a large employer. This leaves
plenty of room for various interpretations, resulting in
complications in practice.
You can find more information about the ADA
athttp://www.eeoc.gov/laws/types/disability.cfm.
Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et
seq.
Using the navigation on the left, please proceed to the next
page.
14. Unit 3: Module 3 - Health and Safety (OSHA)
Health and Safety (OSHA)
The Occupation Safety and Health Act of 1970 established the
Occupational Safety & Health Administration (OSHA) within
the Department of Labor. OSHA’s mission is to “assure safe and
healthful working conditions for working men and women by
setting and enforcing standards and providing training,
outreach, education and assistance” (U.S. Department of Labor,
OSHA, n.d.). OSHA has legal authority through the government
legislative process to promote employee health and safety in the
workplace and also provide “whistleblower” protections for
workers who report unsafe working conditions.
It is easy to envision safety issues in heavy industry where
workers can be exposed to molten steel, toxic chemicals, lasers,
asbestos, under-ventilated mines or hot rivets at a skyscraper
construction site. But, office workers can also be exposed to
safety issues such as unsecured file cabinets, computer cables
taped across thresholds, wet floors, or icy sidewalks. There are
also physical health risks associated with repetitive stress
injuries, back strain, and air quality that many offices regularly
face.
HR strategy should consider and HR managers must be
knowledgeable about such safety regulations since these statutes
and acts may have a bearing on HR policy and procedures.
Employee injuries and even death are undesirable outcomes to
say the least. Aside from moral and ethical concerns and the
15. impact to morale, there are significant fines and legal
ramifications for ignoring safety issues.
You can learn more about OSHA at http://www.osha.gov/.
U.S. Department of Labor, Occupational Safety & Health
Administration (OSHA). (n.d.).About OSHA. Retrieved
from http://www.osha.gov/about.html
Using the navigation on the left, please proceed to the next
page.
Unit 3: Module 3 - Equal Pay Laws (Fair Labor Standards Act)
Equal Pay Laws (Fair Labor Standards Act)
Equal pay laws include federal statutes designed to provide
protection from illegal pay practices defined in the statutes and
acts. Here are some highlights:
· The Fair Labor Standards Act of 1938 (FLSA) initially
established the maximum number of hours in a workweek and a
minimum hourly wage as well as established overtime pay for
certain jobs and limits on child labor. The act has been amended
over the years to increase the minimum wage, lower the
maximum number of hours in a workweek, and establish equal
pay provisions for women.
· The Equal Pay Act of 1963 makes it illegal to pay women less
than men for the same job.
· The Migrant and Seasonal Agricultural Worker Protection Act
16. of 1983 includes provisions about wages and working
conditions for migrant farm workers.
HR strategy should consider and HR managers must be
knowledgeable about such statutes and acts since they have
bearing on HR policy and procedures.
These acts are administered by the Department of Labor. Just as
with other federal statues we have discussed so far, failure to
comply with these regulations can often result in legal action
which can involve back pay from the time of the infraction. You
can learn more about the fair labor regulations
athttp://www.dol.gov/whd/flsa/.
Equal Pay for Women
There is an ongoing debate over the issues of equal pay for
women. Advocates for additional legislation argue that a pay
gap exists between what men and women can earn over their
working lifetimes. Opponents argue that the lifetime disparity
has more to do with women taking time off (sometimes for
many years) to raise families, care for elderly parents, or pursue
other interests. A recent development was the passage of the
Lilly Ledbetter Fair Pay Act of 2009 which addresses the 180-
day filing limit of a complaint. The new law amends the 1964
Civil Rights Act and other related statutes to state that the 180-
day filing limit resets with each paycheck that has been subject
to unequal pay discrimination. As such, women, such as Lilly
Ledbetter, who discover that they have been unfairly paid for
years, can still find a remedy even though they did not file a
complaint within the 180-day filing limit of the initial unequal
paycheck.
In the specific lawsuit initiated by Lilly Ledbetter under the
1964 Civil Rights Act, she claimed that she only discovered her
pay inequity shortly before her retirement, which is why she did
not file a complaint within the initial 180-day period following
the first paycheck in question, some 20 years earlier. The
Supreme Court eventually ruled against her in 2007 because the
statute clearly stated the 180-day limitation. The new law
establishes a revised time limitation indicating that the 180-day
17. limitation is not limited to the initial unfair paycheck, but
essentially to the most recent one. In other words, if a woman
discovers that she has been unfairly paid over a long period of
time, she can still file a complaint within 180 days of her most
recent “unfair” paycheck. It may be worth pointing out that Ms.
Ledbetter was never able to obtain back pay or damages because
of the Supreme Court ruling in 2007. But, her continuing efforts
on this issue resulted in Congress changing this single provision
which removes a barrier to women seeking equal pay. You can
access the statute
at http://www.govtrack.us/congress/bills/111/s181/text.
Using the navigation on the left, please proceed to the next
page.
Unit 3: Module 3 - FMLA
FMLA
Another act administered by the Department of Labor is the
Family and Medical Leave Act of 1993 (FMLA), which entitles
eligible employees defined in the law to unpaid job-protected
leave for specific reasons including the following
circumstances:
· The birth or adoption of a child
· The care of a family member with a serious health condition
· The care of oneself due to a serious health condition
18. · A qualifying emergency
Employees covered under this law and approved for such unpaid
leave cannot be removed from their jobs during the leave. The
FMLA also includes other provisions such as break time for
nursing mothers and special rules for returning military
reservists.
HR strategy should consider and HR managers must be
knowledgeable about FMLA provisions in order to fairly
administer the law and comply with its detailed provisions.
· You can access news and information about compliance
athttp://www.dol.gov/whd/regs/compliance/ca_main.htm.
· You can access the text of the law
athttp://www.dol.gov/whd/regs/statutes/fmla.htm.
Using the navigation on the left, please proceed to the next
page.
Unit 3: Module 3 - Labor Relations Laws
Labor Relations Laws
The National Labor Relations Act of 1935 (also known as the
Wagner Act) protects private sector workers as they engage in
collective bargaining or engage in work stoppages such as
strikes. The act also established the National Labor Relations
Board (NLRB) as an independent agency responsible for
conducting labor union elections and investigating claims of
19. unfair labor practices. The NLRB also facilitates settlements,
adjudicates specific cases, and enforces its orders through the
US Court of Appeals when voluntary compliance does not
occur.
Labor unions have a long history in the U.S. and were initially
focused on large industries such as steel, mining, railways,
automotive and other manufacturing, and longshoremen. There
are also unions for communications workers, teachers,
musicians, professional athletes, health workers, electricians,
carpenters, actors, and public employees. Union negotiated
contracts not only focus on wages and benefits, but also on
working conditions and practices. In most cases, negotiated
improvements in benefits and other working conditions are
extended to non-unionized employees as well.
HR managers in organizations that include union members must
be fully aware of fair labor laws and all aspects of the
negotiated contracts especially as they apply to HR policy and
procedures. But, even those organizations that do not include
union members must be aware of both employer and employee
rights and responsibilities if there is an attempt to organize
employees.
You can learn more about the National Labor Relations Act and
the NLRB athttp://www.nlrb.gov/.
Using the navigation on the left, please proceed to the next
page.
Unit 3: Module 3 - SOX (Whistle Blowers)
20. SOX (Whistle Blowers)
The Sarbanes-Oxley Act of 2002, typically referred to as SOX,
is enforced by the Securities and Exchange Commission (SEC).
The law requires all publicly traded companies in the U.S., as
well as management and accounting firms, to certify the
accuracy of their financial information. The law also provides
extensive protection for employee whistleblowers and includes
the following key provisions:
· The law requires publicly traded companies to create internal
and independent audit committees as well as establish
confidential whistleblower complaint procedures.
· The law established ethical standards for attorneys who appear
before the SEC.
· The law criminalizes retaliation against whistleblowers for all
employers, not just those employed by publicly traded
companies.
· The law establishes the authority of the SEC to enforce every
part of the statute.
You can access the text of the law
at http://www.sec.gov/about/laws/soa2002.pdf.
HR strategy should consider and HR managers must be
knowledgeable about such the Sarbanes-Oxley law, particularly
the whistleblower provisions as they apply to HR policy and
procedures.
Using the navigation on the left, please proceed to the next
page.
21. Unit 3: Module 3 - Health Reform
Health Reform
One of the most sweeping pieces of legislation that addresses
the financing and delivery of healthcare is the Patient Protection
and Affordable Care Act of 2010 (United States Government,
2010). This law, frequently referred to as the ACA or health
reform, is designed to increase access to health coverage for
uninsured Americans, as well as provide new protections for
people who have insurance but were unable to obtain coverage
for a preexisting condition such as cancer. Some of the law’s
provisions became immediately effective while others have
effective dates up to and including 2015. You can see a timeline
showing “what changes when”
athttp://www.healthcare.gov/law/timeline/index.html.
The ACA addresses a broad scope of issues including healthcare
access and affordability, the financing of government healthcare
programs, preventative care and public health, medical
technology, and the reauthorization of the Indian Health Care
Improvement Act. There are significant provisions applicable to
both small and large businesses as they meet the requirement to
provide employee access to health insurance. There are also tax
implications for all businesses as well as a requirement for
employers to report the cost of coverage under an employer-
sponsored group health plan on each employee’s W-2 form
beginning in 2012. Reporting the cost, however, does not mean
that the coverage is taxable.
The ACA poses challenges to HR managers as they seek to
explore its full impact on policies and procedures. This is
further complicated by the fact that rules and regulations
continue to be formulated by the Department of Health and
Human Services (HSS).
22. · The government Web site HealthCare.gov (maintained by
HSS) provides extensive information including specific pages
for employers athttp://www.healthcare.gov/using-
insurance/employers/index.html.
· You can access the complete text of the law
athttp://www.gpo.gov/fdsys/pkg/BILLS-
111hr3590enr/pdf/BILLS-111hr3590enr.pdf.
· The Department of Labor Web site also provides extensive
information useful for businesses to comply with the law and its
myriad provisions:http://www.dol.gov/ebsa/healthreform/.
· The Henry J. Kaiser Family Foundation Web site also provides
extensive information, research, and
analysis: http://healthreform.kff.org/.
United States Government (2010, March 23). Public Law 111–
148 111th Congress: An Act Entitled The Patient Protection and
Affordable Care Act. Retrieved
fromhttp://www.gpo.gov/fdsys/pkg/PLAW-
111publ148/pdf/PLAW-111publ148.pdf
Using the navigation on the left, please proceed to the next
page.
Unit 3: Module 3 - State and Local Laws
State and Local Laws
So far, we have examined important federal employment laws.
However, each state and many municipalities also have
23. employment laws. State and local regulations cannot supersede
federal law, but they can clarify or further constrain the
resolution of a case or complaint. Additionally, state and local
laws can vary widely, which adds additional complications to
those employers with locations in multiple cities or states.
Consider these examples:
· Some states and local municipalities impose income taxes,
which require employers to maintain careful records so that
taxes are deducted from applicable income.
· Some states have a “right to work” law, which means that
employees are not required to join a union in order to be hired.
· Some states have unique safety and labor laws that add
conditions to federal employment laws.
· Some states have alternative dispute resolution choices for
labor negotiations that add to federal employment laws.
The Department of Labor provides links to state labor offices as
well as to a variety of state fair labor practices
at http://www.dol.gov/whd/state/state.htm. For example, you
can display summaries as to how various states regulate child
entertainment occupations or door-to-door sales by minors.
International laws may also have a bearing on the HR strategy
with an increasing number of employers choosing to operate
internationally as well as nationally. Laws in various countries
can differ drastically and present additional challenges and
responsibilities to those charged with compliance. Because of
these layers of complexity, employers often find compliance
difficult. A lack of awareness, constant changes, variability in
interpretation, and lack of clarity can all contribute to
noncompliance, subjecting employers to penalties.
The first step in avoiding these issues is to develop an
awareness of relevant federal, state, local, and even
international laws to determine how such laws affect your HR
policies and procedures. This is followed by the process of
identifying resources and maintaining current knowledge of the
laws and their interpretation.
Using the navigation on the left, please proceed to the next
24. page.
Unit 2: Module 2 ()
· From Managing human resources: Productivity, quality of
work life, profits (9th ed.), read the following chapters:
· Pay and incentive systems
· Indirect compensation: Employee benefit plans
Module 2 Overview
In this module, you will learn about the strategic, operational,
and tactical compensation and benefits tools HR managers use
in talent management. HR managers use a mix of compensation
and benefits as incentives and motivators. A key role for HR
managers is to devise an incentive system that rewards and
motivates human behavior, which includes monetary and
nonmonetary incentives that assist HR managers to acquire and
develop talent.
HR strategy and HR managers utilize a carrot-and-stick
approach to motivate employees. The carrot symbolizes
incentives whereas the stick symbolizes policies and
procedures. Incentives are seen as positive motivators in terms
of acquiring and keeping talent in organizations whereas rules
25. help in keeping control over employees.
Professional organizations such as the Society for Human
Resource Management (SHRM) and the American Society for
Training and Development (ASTD) provide best practices and
benchmarks in employee motivation and development. HR
professionals may refer to these resources for talent
management.
In the first assignment of this module, you will discuss and
evaluate the compensation and benefits that motivate
employees. In the second assignment, you will analyze the
impact of acquisition and mergers on paid time off (PTO)
policies of an organization. You will also recommend a common
PTO system, keeping in mind the policies of two merged
companies.
Using the navigation on the left, please proceed to the next
page.
· Incorporate strategic human resource management principles
in the development of programs that meet organizational needs
and enable the organization to maintain a competitive
advantage.
· Recommend talent management strategies that support the HR
strategic plan and the competitive strategy of the organization.
Unit 2: Module 2 - Compensation and Benefits
Compensation and Benefits
26. ·
· http://www.entrepreneur.com/article/223516
·
Compensation means salary. HR managers use research, studies,
and surveys to determine a competitive salary in order to design
a talent management strategy.
Benefits such as PTO and medical insurance, etc., are also
researched and planned. Benefit packages supplement
employees’ compensation, and, thus, form an important element
of a talent management strategy. A benefit plan typically
addresses the specific needs of employees. However, HR
managers must balance the needs of the organization and the
needs of the employees while designing the compensation and
benefits (C&B) mix because market forces often drive
resources. In a good economy, or when an organization is
flourishing, it is relatively easy to acquire talent. When
economic or organizational performance is bad, attracting
resources becomes tougher.
The role of C&B on employee motivation, morale, productivity,
and retention can be profound and is the subject of ongoing
research to determine not only the effect of compensation and
benefit packages on productivity, but also the specific tipping
point. For example, will a 25% bonus on base salary result in a
25% increase in productivity? Would a 20% bonus have the
same results? Can any increase in productivity be accurately
linked to bonus incentives or are there other factors at work?
Your assigned readings provide some references to such studies,
but you can conduct your own research in the Argosy University
online libraries using keywords like “pay for performance,”
“compensation rewards,” “financial rewards,” “organizational
performance,” “human resource management,” or “profit-
sharing.”
Executive Compensation
Executive compensation is about talent acquisition and
development. It is strategic in nature and incentive based.
27. Executive compensation is about getting and retaining the best
talent available. Many executive compensation plans are based
on market value and is often about pay for performance.
http://www.inc.com/guides/hr/20678.html
Benefits
HR strategies employ various benefits including the following:
· Medical benefits: Medical benefits are usually provided for all
employees and include comprehensive and/or major medical
insurance. Employees may be given choices between service
providers and insurance riders where possible.
· Insurance: There are various types of insurances, and
employees may have a say in the type of insurance they want to
avail.
· Pensions: This includes retirement benefits, with a choice of
options when possible.
· 401Ks: This includes retirement benefits, with a choice of
options when possible.
· Time off: Employees may receive various options for time off
work such as sick leave, personal leave, vacations, holidays,
and sabbaticals.
· Lifestyle benefits: This includes incentives such as restaurant
vouchers, movie tickets, membership to social clubs, and so on.
· Wellness/childcare: This includes memberships to gyms,
health clubs, child care facilities, and so on.
· Flex benefits: This includes options such as telecommuting,
and flexible working hours depending on the employee’s
convenience.
http://www.entrepreneur.com/article/80158
·
Using the navigation on the left, please proceed to the next
page.
28. Unit 2: Module 2 - Job Analysis
Job Analysis
Job analysis in an important tool in talent management. This
process serves to identify the activities involved in a job and
the skills required to perform it. It helps HR managers select the
right personnel for the right job. Job analysis should be
performed on a need basis, and the process should be
continually improved.
There are three parts to the job analysis process:
1. Needs analysis: A needs analysis entails gathering data and
developing goals and objectives. It helps understand the needs
of the job. O’Connor (2006) summarized a simplified three-step
approach to needs assessment:
a. Identify the problems, issues, challenges, goals, and priorities
of the business.
b. Uncover gaps in performance areas.
c. After determining causes of the problems, recommend
solutions. (O’Connor, 2006, pp. 14–17)
2. Job description: A job description is a document that
describes the role, duties, and responsibilities of the job and
explains the skills and activities required to perform the job.
The job description provides all the information related to the
job such as designation, location, nature of the job, and
qualifications required for the job. It also explains the
authority-responsibility relationship with internal and external
people.
29. 3. Evaluation and Assessment: This is the last stage of the job
analysis process. Evaluation and assessment make sure that the
job description is reviewed periodically to maintain its
effectiveness. This process, when implemented correctly, leads
to better workforce management.
The job analysis process assists HR in developing accurate job
descriptions. It also helps them conduct employee recruitment
and evaluation. However, HR personnel should be cautious to
evaluate only the job and not the employees while performing
the job analysis.
O’Connor, J. (2006). Shifting mindsets. E.Learning Age, 14–17.
Retrieved
fromhttp://search.proquest.com.libproxy.edmc.edu/docview/200
863208/
abstract?source=fedsrch&accountid=34899
Using the navigation on the left, please proceed to the next
page.
Unit 2: Module 2 - Performance Appraisal
Performance Appraisal
Performance appraisals are snapshots of performance over a
period of time. They are conducted at periodic intervals or by
triggering planned or situational events.
Performance appraisals are conducted during a given period to
30. gauge progress and/or at the end of a period to review the
employees’ performances. The appraisals can be carrot and stick
(reward and/or punishment) or purposive (that is, ranking for
advancement).
The process of performance appraisal seeks to evaluate the
performance of employees and understand their needs and
abilities for further growth and development. Performance
appraisal serves the following objectives:
· To revise employees’ compensation and work profile as per
industry standards
· To provide feedback to employees about their performance
with respect to the organization’s expectations
· To assess the strengths and weaknesses of employees for
further growth and development
· To measure the potential in employees to take up the next
challenging role or assignment
Performance appraisals offer several advantages to the
organization:
· Compensation: Performance appraisals allow HR to outline
compensation packages for employees based on their
performance. The compensation package includes bonus, high
salary rates, extra benefits, allowances, and pre-requisites, all
of which are dependent on the performance appraisal.
· Employee Development: Performance appraisals help
supervisors recognize the training needs of employees based on
their strengths and weaknesses and identify the required
training programs for their development.
· Promotion: Performance appraisals help supervisors identify
efficient employees and design a promotion plan for them. It
also helps them recognize inefficient employees and chalk out
an appropriate plan for their development.
· Motivation: Performance appraisals help measure the
efficiency of employees if targets assigned to them are met.
This helps motivate employees to improve their performance in
the future.