HR
The CEO of Fresh Munchables has asked you to review the company’s health care plan, specifically its premium-sharing policies. In the past, the company paid a huge portion of its employees’ medical insurance while employees paid very little. Now that the company has grown and many more employees have been hired, this model is becoming unsustainable. The company has also conducted an internal review and found that many employees may be overutilizing their benefits.
How can Fresh Munchables still offer quality health insurance to their employees while also encouraging employees to not overuse their benefits?
Increase the deductible employees pay for each service in order to maintain the same level of coverage at a lower employer cost.
Decrease the number of benefits because neither the company nor the employees can afford them.
Offer insurance to fewer employees in order to encourage competition for rewards.
Discontinue dental and vision insurance because they are less desirable for many employees.
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A supervisor suggested paying salaried employee Gregory less in April this year, because last year Gregory averaged only 25 hours a week. However, the supervisor wants to pay Gregory more this May because Gregory worked an average of 55 hours per week last year. The supervisor’s suggestion was denied because José, a compensation specialist, knows that if an employee is salaried, the company cannot change compensation irrespective of hours worked.
Should the company make changes to Gregory’s compensation, and why or why not?
No, because the company may face legal complications due to corporate fraud
No, because the company may face fines and back payment of overtime
Yes, because the company can save on insurance costs if Gregory is paid as a part-time employee
Yes, because salaried employees may be paid based on their hours worked per week if they work less than expected
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Fresh Munchables has a factory that requires some employees to perform jobs in less than desirable work conditions. For example, employees often work in rough conditions, handle potentially dangerous material, and in some cases, are required to work through the night. The company wants to be able to attract and retain talent, and they also want to provide its employees with fair compensation for their hard work.
Assuming the factors outlined above have not been accounted for in the company’s compensable factors, which of the following should Fresh Munchables do to provide its employees with fair compensation?
Offer employees the ability to trade shifts with other employees to make work conditions better.
Offer employees a large end-of-year bonus to incentivize them to work in undesirable conditions.
Include a few special compensation adjustments such as hazard pay, geographic pay, on-call pay, and so on.
Include a few differential compensation adjustments such as hazard pay, geographic pay, on-call pay, and so on.
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As an HR professional, you understand that compensation and total rewards is a complicated topic. At Fresh Munchables, there have been many cases over the years in which employees have shared strong feelings and harsh words with HR when they felt that their pay was unfair.
In light of the company’s past dealings with employees concerning compensation, which of the following is important for you to understand as you revise the total compensation system?
Compensation is too complex to approach straightforwardly and openly.
Employees care deeply about being paid more than their peers.
Wages and rewards shape how employees both feel and perform.
Employees don’t need a transparent compensation system because it could make them feel bad.
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Anthony is hoping to be considered for a high-pressure and high-paying job at Fresh Munchables, but he has a concerning preexisting heart problem. In addition to the Health Insurance Portability and Accountability Act (HIPAA) covering his medical needs through health insurance coverage, what else does HIPAA do to protect Anthony and other employees with health-related concerns?
Does not allow their insurance deductible to increase due to a change in position, even a higher-paid position
Improves the quality of care and ensures that coverage is the same regardless of the position
Protects employees’ privacy and prevents health-related information from influencing employment-related decisions
Requires employers to keep an easily accessible document with health-related information on each employee to assist them with their health concerns and needs
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Recently, members of the janitorial staff at one of Fresh Munchables’ factories have complained about unsafe working conditions and poor treatment from other manufacturing employees. In order to remedy the situation, HR manager Anisha has been working with facilities management supervisor Josh to make some significant changes to his department, such as providing the staff with more safety equipment and carefully addressing negative relationships in the workplace. Anisha and Josh want to ensure that the janitorial staff feels safe, empowered, and valued as contributors to the company’s success.
Why should Fresh Munchables’ managers make these large changes to improve the department’s intangible rewards, rather than simply increasing the employees’ wages?
Intangible rewards are not crucial in this case, as it is common for low-level employees to feel less valued and appreciated.
Intangible rewards, such as psychological, social, and contextual factors, are crucial for increasing employee satisfaction.
Intangible rewards, such as employee status, job title, and salary, are crucial for increasing employee satisfaction.
Intangible rewards are important, but an increase in pay will better increase employee satisfaction.
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José, a compensation specialist at Fresh Munchables, just created a new pay-for-performance bonus initiative in the business operations unit. If the business operations unit hits the desired performance metric, employees in this unit will receive an annual bonus in relation to their pay grade.
Which is the most effective way to track whether this incentive plan is producing the desired outcome?
Monitor all performance metrics in the company by collecting and tracking data.
Monitor the performance metric detailed in the plan by collecting and tracking data.
Require employees to fill out surveys to determine if they are meeting their personal goals.
Require units to fill out surveys to determine if they are meeting their unit goals.
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Fresh Munchables has acquired a new freeze-dried meat company, and employees now qualify for discounts for packaged meat products. Kenna, a supervisor, has been told by the HR team to provide her employees with formal training, supervisor-based training, and accessible online information so that they can be informed about these new benefits.
Why would communicating these rewards through multiple different methods be beneficial?
It provides a high level of accuracy and transparency for all employees.
Word-of-mouth alone creates chaos and disrupts productivity.
Discounts are a top priority for some employees, so they need to know about them immediately.
One reliable communication method should be good enough.
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Fresh Munchables, like any company, constantly goes through changes in staffing, staffing needs, company revenue, compensation plans, and strategy. As an HR manager, you know it is essential to comply with all relevant employment laws to manage your employees appropriately and to ensure specific groups are not unfairly targeted.
What is an advisable course of action in your role?
Attend all upper management meetings to be sure human resource concerns are addressed.
Assign specific employees as whistleblowers to ensure the company satisfies legal and ethical regulations.
Create a diversity and inclusion document and post it publicly.
Conduct follow-up research including surveys to gauge employee reactions to changes.
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The executive team at Fresh Munchables would like to include retirement benefits in their compensation model. They understand that proper retirement planning is becoming increasingly vital based on concerns surrounding social security. After looking at various alternatives, they have decided to provide their employees with select retirement benefits. The benefits plan they choose to implement must (1) be cost-effective and (2) not require the company to set aside its own money to fund it.
Based on this information, which type of plan will best meet their strategy needs?
A defined bonus plan: an incentive offered by organizations to employees who fulfill certain requirements or who have performed noteworthy tasks
A defined constituent plan: a formula to calculate how much value an employee has contributed, and will continue to contribute, to the organization’s success
A defined contribution plan: a retirement plan in which employers contribute to a portable retirement account in the employee’s name
A defined benefit plan: a formula to calculate how much pension an employee has earned and how much the organization will pay the employee throughout retirement
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Shara, a new employee at Fresh Munchables, is asking for paid time off to take care of her aging father, who has a life expectancy of six months. Shara has been with the company two months and has worked a total of 120 hours. The Family and Medical Leave Act (FMLA) has been designed to meet employees’ needs in times such as this, and you, as an HR professional, want to follow its requirements.
In accordance with the requirements of the FMLA, your company has a large staff surpassing 50 employees, but what is another requirement for Shara?
She must have worked 1,250 hours for the organization in the preceding year.
She must find a replacement to perform her job function while she takes leave.
She must be prepared to use all of 12 weeks of time off at one time.
She needs to give two weeks’ notice before taking her paid time off.
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Fresh Munchables has recently hired some teenagers to help with some tasks that are safe, simple, and also require only a limited number of hours of work per week. José, a compensation specialist, and Don, the department manager who oversees the teenage workers, both want to ensure that they are complying with the law.
In addition to complying with the law, what else do José and the department manager need to do?
Obtain permission from the teenagers’ schools to employ them.
Check the teenagers’ height and weight to be sure both meet the regulations outlined in the Child Labor Act.
Maintain a record containing all the compliance information.
Require the teenage workers to sign a form releasing Fresh Munchables from liability.
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After the departure of more than a few employees over the past six months, the management team at Fresh Munchables’ are concerned about their employees’ happiness and job satisfaction. The company has raised wages and found the best possible health care plan; yet, it still struggles to keep long-term employees.
Which strategy can the management team use to figure out how to retain employees and increase employee satisfaction?
Reward the managers whose departments have the highest employee retention rates and fire the ones with low employee satisfaction.
Create policies that penalize employees for leaving the company before a specified period of time in order to establish expectations.
Offer a better retirement plan for employees in order to incentivize older workers to apply for jobs.
Conduct a survey asking employees what benefits they want in order to gain useful information about preferred compensation plans.
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The executive team at Fresh Munchables wants the company to stand out from its competitors. The company doesn’t have enough money to offer new employees higher rates or additional health benefits compared to other companies in the area, so the executive team has asked you for advice on attracting highly qualified employees.
What advice can you give them?
The company should offer unique perks that will improve perception of the company’s culture.
The company should reduce its number of employees in order to pay new employees more.
The company should offer better job titles to new employees.
The company should advertise its quality company’s culture in creative ways.
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Angelina is a self-proclaimed “health nut” and animal activist. She recently was hired at Fresh Munchables, a food and beverage company offering vegan on-the-go snacks, as their marketing manager. Angelina could not be happier about her new position because it aligns with her values.
What does the HR manager who hired Angelina know about the purpose principle?
Purposeful employees are typically the hardest-working employees in any industry.
Animal activists have a higher moral purpose than those who disregard animal rights.
When the employee’s values align with the business’s core purpose, the employee will need fewer rewards.
When the employee’s values align with the business’s core purpose, the employee will value their relationship with the business more.
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