...the federal policy embodied in the McCarran-Ferguson Act of leaving the regulation of insurance to the states, Congress saved from ERISA preemption any state law which regulates insurance. States have enacted legislation that requires insurers to pay for the services of a particular type of health care provider, even if the terms of the policy specify that the payment will be made only to another type of provider. These “mandated-provider” laws, as they are called, relate to employee benefit plans because they change the terms of the insurance policies purchased by these plans. Thus, unless mandated-provider laws regulate insurance, such laws are preempted by ERISA as applied to employee benefit plans. The question whether mandated-provider laws are laws that regulate insurance is important because of the prevalence of such statutes, the large number of individuals covered by insurance plans, and the significant effect such statutes have on the structure, administration, and cost of insured plans. Insurers are generally opposed to mandated-provider provider laws because they induce many employee groups to self-insure plans, create dis-uniformities in multistate plans, increase the cost of plan administration, and force insurers to pay less effective or less efficient providers. Insurers and employee groups are also opposed to mandated-provider laws because they interfere with insurers’ attempts to lower costs by forming preferred provider...
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...Management Final Exam Study Guide Chapter 11 – Compensation * What is total rewards * How is it different than traditional compensation * Why compensation philosophies vary by organization * Entitlement vs. performance philosophies Intrinsic vs. extrinsic rewards- Intrinsic rewards may include praise for completing a project or meeting performance objectives. Other psychological and social forms of compensation also reflect intrinsic type of rewards. Extrinsic rewards are tangible and take both monetary and nonmonetary forms. * Role of the HR unit in compensation * Internal equity * External equity * Meet/lag/lead strategies * FLSA * Exempt / nonexempt * 5 categories of exempt employees * Overtime * Training & travel time * Independent contractors * How to classify * Tax implications for employers / employees * Market pricing and pros/cons * Pay grades * Red/green circle employees * Pay adjustments (e.g. seniority) Chapter 12 – Incentives * Variable pay philosophy * How variable pay motivates employees * 3 categories of variable pay * Types of individual incentives * Gainsharing and how different from profit sharing * 3 types of commission pay plans and which is the most common * Examples of performance incentives * Why incentives should be tied to organizational goals * Pros/cons of bonuses vs. merit pay Chapter 13 – Benefits ...
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...Pay enough, don’t pay too much or don’t pay at all? An empirical study of the non-monotonic impact of incentives on job satisfaction Pouliakas, K1 Centre for European Labour Market Research (CELMR), University of Aberdeen Business School, Scotland Keywords: Incentives, intensity, job satisfaction, non-monotonic JEL- Code: C23, J28, J33. Abstract This paper attempts to test the non-monotonic effect of monetary incentives on job satisfaction. Specifically, 8 waves (1998-2005) of the British Household Panel Survey (BHPS) are used to investigate the ceteris paribus association between the intensity of bonus/profit-sharing payments and the utility derived from work. After controlling for individual heterogeneity biases, it is shown that relatively ‘small’ bonuses exert a significant negative effect on worker satisfaction. In contrast, job utility is found to rise only in response to ‘large’ bonus payments, primarily in skilled, non-unionized private sector jobs. The empirical evidence of the paper is therefore consistent with a ‘V-effect’ of incentives, suggesting that employers wishing to motivate their staff should indeed “pay enough or don’t pay at all”. 1 Research Fellow, Address: CELMR, University of Aberdeen Business School, Edward Wright Building, Dunbar Street, Old Aberdeen AB24 3QY, UK; Tel: ++44 01224 272172; e-mail: k.pouliakas@abdn.ac.uk. 1. Introduction The principal-agent model, with its convincing illustration of the trade-off that arises between risk...
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...LEHMAN TRIKES: A STORY WITHIN A STORY Donald C. Looney, Black Hills State University CASE DESCRIPTION The primary subject matter of this case is strategic alliances. Secondary issues include business strategy, entrepreneurship and marketing. The case explores the dynamics of an alliance between Harley-Davidson and a small, entrepreneurial, niche market company, Lehman Trikes. CASE SYNOPSIS As the world was in the midst of a crippling recession, on July 22, 2008, Harley-Davidson unveiled the new Tri Glide three-wheeled motorcycle at the annual dealer meeting in Las Vegas. At the same meeting Lehman Trikes, a small but rapidly growing leading manufacturer of three-wheeled motorcycles, announced that it would be the exclusive supplier to Harley-Davidson of the Tri Glide. Ron Hutchinson, senior vice president of product development for Harley-Davidson said, “This is a big deal. The three-wheeled market is a market that we believe has been effectively underserved because it has been done in the aftermarket.” (Pitlick, Harley trikes to be built here, 2008) While the entrance of Harley-Davidson into the trike market would obviously legitimize and add enormous growth opportunities for the three-wheel segment of the motorcycle market, would it profoundly change Lehman’s environment and business model? Dan Patterson, then CEO of Lehman Trikes, would later cryptically write of the event in the 2008 Third Quarter Report, “We are truly pleased...
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...UNIVERSITA’ DELLA CALABRIA Dipartimento di Sociologia e Scienza Politica Dottorato di ricerca in “Scienza Tecnologia e Società” cofinanziato dal FSE HUMAN RESOURCE MANAGEMENT FOR THE LEARNING FACTORY by Harry Barton and Rick Delbridge Cardiff Business School University of Wales, United Kingdom BartonH@Cardiff.ac.uk Paper prepared for International Workshop Lean Production and Labour Force in the Car Industry: The Forms of Implementation of an Epoch-Making Model March 25-27, 2000 University of Calabria – Rende (Italy) 20 Introduction It is conventional wisdom that the factories of the future will be sites of continuous improvement, innovation and knowledge creation (Leonard Barton, 1992; Cooke and Morgan, 1998), with the focus being on the development of a set of strategies and organisational forms based on high skills, organisational flexibility and trust, often termed “high-performance work practices.” (OECD,1998). This view has been formulated followingresearch into developments in large manufacturing organizations within the world’s motor industry (Womack et al, 1990; MacDuffie, 1995) and in particular, Japanese manufacturers (Fruin, 1992; Kenney and Florida, 1993), where human resources (HR) and work practices are often considered central to the success of the Japanese automotive producers (Pil and MacDuffie, 1999). Such views raise fundamental questions regarding the role of labour in such manufacturing systems and, as a direct consequence, there has...
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...HRM LITERATURE REVIEW Most of the literature and research summarized below is fairly recent although some earlier seminal pieces of research and commentary are included. The selection is by no means exhaustive – a tremendous amount of research is carried out in HRM. ------------------------------------------------- Topics ------------------------------------------------- ------------------------------------------------- HRM general Strategic HRM ------------------------------------------------- The HR function Line managers and HR ------------------------------------------------- Human capital management Impact of HR on performance ------------------------------------------------- International HRM Corporate social responsibility ------------------------------------------------- Knowledge management Lean working ------------------------------------------------- High-performance work systems Psychological contract ------------------------------------------------- Organizational behaviour Motivation and job satisfaction ------------------------------------------------- Engagement Commitment ------------------------------------------------- Selection methods Retention ------------------------------------------------- Talent management Flexible working ------------------------------------------------- Balancing work and family life Learning and development ------------------------------------------------- Performance management...
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...CHAPTER 1 WHAT IS CSR? eople create organizations to leverage their collective resources in pursuit of common goals. As organizations pursue these goals, they interact with others inside a larger context called society. Based on their purpose, organizations can be classified as for-profits, governments, or nonprofits. At a minimum, for-profits seek gain for their owners; governments exist to define the rules and structures of society within which all organizations must operate; and nonprofits (sometimes called NGOs—nongovernmental organizations) emerge to do social good when the political will or the profit motive is insufficient to address society’s needs. Aggregated across society, each of these different organizations represents a powerful mobilization of resources. In the United States, for example, more than 595,000 social workers are employed largely outside the public sector—many in the nonprofit community and medical organizations—filling needs not met by either government or the private sector.1 Society exists, therefore, as a mix of these different organizational forms. Each performs different roles, but each also depends on the others to provide the complete patchwork of exchange interactions (products and services, financial and social capital, etc.) that constitute a well-functioning society. Whether called corporations, companies, businesses, proprietorships, or firms, for example, for-profit organizations also interact with government, trade unions, suppliers,...
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...How to Manage People in SMEs in Context (Walkers Engineering Ltd. Case Study) Introduction and background of the case Walkers Engineering Ltd. is a small and medium family-run enterprise with 225 employees, and is partially unionized. The company manufactures plastic mouldings and bins, enjoying a good reputation for its quality. In order to remain profitable and a leader position in the market, the company plans to take some radical changes in new technology, working practices and reorganization of the workforce. The strategic agenda for Walkers Engineering is to start pilot scheme from the manufacturing section with acute problems and then to transform organization-wide. In this assignment, based on the overall situation of Walkers Engineering, specific problems in the organization, especially from manufacturing department will be discussed, and realistic solutions affecting the company will be addressed in according to the practice and management knowledge. Meanwhile, the relevant implementation would be introduced for comparison provided this organization was operating in China. Main problems in Walker Engineering As many people have mentioned, nothing is perfect in the world and ‘there is always a room for improvement (Cheetham, 2009). As one of functional department full of shop floorers in Walker Engineering, manufacturing section is involved in producing bins and packing and dispatching them. It gets many problems indentified, which partly reflect the management...
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...technology or capital and for its effective management, organization requires effective HRM system. HRM system should be backed up by strong HRM practices. HRM practices refer to organizational activities directed at managing the group of human resources and ensuring that the resources are employed towards the fulfillment of organizational goals. The purpose of this study is to explore contribution of Human Resource Management (HRM) practices including selection, training, career planning, compensation, performance appraisal, job definition and employee participation on perceived employee performance. We describe why human resource management (HRM) decisions are likely to have an important and unique influence on organizational performance. Our hope is that this research forum will help advance research on the link between HRM and organizational performance. We identify key unresolved questions in need of future study and make several suggestions intended to help researchers studying these questions build a more cumulative body of knowledge that will have key implications for body theory and practice. This study comprehensively evaluated the links between systems of High Performance Work Practices and firm performance. Results based on a national sample of firms indicate that these practices have an economically and statistically significant impact on...
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...What is an ideal management control system Management control is a process of assuming that resources are obtained and used effectively and efficiently in the accomplishment of the organization’s objectives. It is a fundamental necessity for the success of a business and hence from time to time the current performance of the various operations is compared to a predetermined standard or ideal performance and in case of variance remedial measures are adopted to confirm operations to set plan or policy. Features of management control system Total System: MANAGEMENT CONTROL SYSTEM is an overall process of the enterprise which aims to fit together the separate plans for various segments as to assure that each harmonizes with the others and that the aggregate effect of all of them on the whole enterprise is satisfactory. Monetary Standard: MANAGEMENT CONTROL SYSTEM is built around a financial structure and all the resources and outputs are expressed in terms of money. The results of each responsibility centre in respect to production and resources are expressed in terms of a common denominator of money. Definite pattern: It follows a definite pattern and time table. The whole operational activity is regular and rhythmic. It is a continuous process even if the plans are changed in the light of experience or technology. Coordinated System: It is a fully coordinated and integrated system. Emphasis: Management control requires emphasis both on the search for planning as well as...
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...Financial Management, Rotterdam, The Netherlands Mohamed E. Bayou Chee W. Chow Cynthia M. Daily Harry Z. Davis Nabil Elias Arron Scott Fleming Frank G. H. Hartmann vii viii LIST OF CONTRIBUTORS Fred A. Jacobs Frances Kennedy James M. Kohlmeyer, III Leslie Kren John Y. Lee Michael S. Luehlfing Adam S. Maiga School of Accountancy, Georgia State University, Atlanta, GA, USA Department of Accountancy and Legal Studies, Clemson University, SC, USA College of Business, East Carolina University, Greenville, NC, USA School of Business, University of Wisconsin, Milwaukee, WI, USA Lubin School of Business, Pace University, Pleasantville, NY, USA School of Professional Accountancy, Louisiana Tech University, LA, USA School of Accounting, Florida International University, Miami, FL, USA I.H. Asper School of Business, University of Manitoba, Winnipeg, Canada School of Professional Accountancy, Louisiana Tech University, Ruston, LA, USA School of Business, Wayne State University, Detroit, MI, USA Department of Accountancy and Legal Studies, Clemson University, SC, USA College of Commerce, National...
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...University of Pennsylvania ScholarlyCommons Master of Science in Organizational Dynamics Theses 1-31-2007 Organizational Dynamics Programs Nucor Corporation: A Study on Evolution Toward Strategic Fit Regina Gordin University of Pennsylvania, regina.gordin@gmail.com Submitted to the Program of Organizational Dynamics In the Graduate Division of the School of Arts and Sciences In Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania. Advisor: Everett Keech This paper is posted at ScholarlyCommons. http://repository.upenn.edu/od_theses_msod/1 For more information, please contact repository@pobox.upenn.edu. NUCOR CORPORATION: A STUDY ON EVOLUTION TOWARD STRATEGIC FIT by Regina Gordin Submitted to the Program of Organizational Dynamics In the Graduate Division of the School of Arts and Sciences In Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania Philadelphia, Pennsylvania 2006 NUCOR CORPORATION: A STUDY ON EVOLUTION TOWARD STRATEGIC FIT Approved by: ________________________________________________ Program Director ________________________________________________ Advisor ABSTRACT For much of its century long history, Nucor Corporation and its predecessors displayed turbulent financial performance. Several attempts at a strategic realignment proved unsuccessful, and in...
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...University of Pennsylvania ScholarlyCommons Master of Science in Organizational Dynamics Theses 1-31-2007 Organizational Dynamics Programs Nucor Corporation: A Study on Evolution Toward Strategic Fit Regina Gordin University of Pennsylvania, regina.gordin@gmail.com Submitted to the Program of Organizational Dynamics In the Graduate Division of the School of Arts and Sciences In Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania. Advisor: Everett Keech This paper is posted at ScholarlyCommons. http://repository.upenn.edu/od_theses_msod/1 For more information, please contact repository@pobox.upenn.edu. NUCOR CORPORATION: A STUDY ON EVOLUTION TOWARD STRATEGIC FIT by Regina Gordin Submitted to the Program of Organizational Dynamics In the Graduate Division of the School of Arts and Sciences In Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania Philadelphia, Pennsylvania 2006 NUCOR CORPORATION: A STUDY ON EVOLUTION TOWARD STRATEGIC FIT Approved by: ________________________________________________ Program Director ________________________________________________ Advisor ABSTRACT For much of its century long history, Nucor Corporation and its predecessors displayed turbulent financial performance. Several attempts at a strategic realignment proved unsuccessful, and in...
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...Internship Report on Functions oF credit risk management in non Banking Financial institutions (nBFi) in Bangladesh A study on IDLC Finance Limited Internship Report on Functions oF credit risk management in non Banking Financial institutions (nBFi) in Bangladesh A study on IDLC Finance Limited Submitted to: Sharmin Shabnam Rahman Dewan Mostafizur Rahman Internship supervisor of the submitter BRAC Business School (BBS) BRAC University Submitted By: Chowdhury Tasmiah Jabeen ID-06104024 BRAC Business School (BBS) BRAC University Date of Submission: 23rd December 2009 Letter of Transmittal_______________________ 23rd December 2009 Sharmin Shabnam Rahman BRAC Business School (BBS) BRAC University Subject: Submission of Internship Report of BBA Programme Dear Madam, It is my great pleasure to submit the internship report on "Functions of Credit Risk management in Non Banking Financial Institutions (NBFI) in Bangladesh, A study on IDLC Finance Ltd " which is a part of BBA Programme to you for your consideration. I made sincere efforts to study related materials, documents, observe operations performed in IDLC Finance Limited and examine relevant records for preparation of the report. Within the time limit, I have tried my best to compile the pertinent information as comprehensively as possible and if you need any further information, I will be glad to assist you. Thanking you, Chowdhury Tasmiah Jabeen ID-06104024 BRAC Business School (BBS) BRAC...
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...THE McKINSEY QUARTERLY 1994 NUMBER 3 87 What is value-based management? An excerpt from Valuation: Measuring and Managing the Value of Companies, Second Edition Timothy Koller Recent years have seen a plethora of new management approaches for improving organizational performance: total quality management, flat organizations, empowerment, continuous improvement, reengineering, kaizen, team building, and so on. Many have succeeded – but quite a few have failed. Often the cause of failure was performance targets that were unclear or not properly aligned with the ultimate goal of creating value. Value-based management (VBM) tackles this problem head on. It provides a precise and unambiguous metric – value – upon which an entire organization can be built. The thinking behind VBM is simple. The value of a company is determined by its discounted future cash flows. Value is created only when companies invest capital at returns that exceed the cost of that capital. VBM extends these concepts by focusing on how companies use them to make both major strategic and everyday operating decisions. Properly executed, it is an approach to Management that aligns a company’s overall aspirations, analytical techniques, and management processes to focus management decision making on the key drivers of value. It’s very different from 1960s-style planning systems. It is not a staff-driven exercise. It focuses on better decision making at all levels in an organization. It recognizes that top-down...
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