UNIT 1

Human Resource Management:

Human resource management is designing formal systems in an organization to
manage human talent for accomplishing organizational goals. Whether you work in
a big company with 10,000 employees or a small nonprofit organization with 10
employees, employees must be recruited, selected, trained, managed, and
retained. Employees must also be paid, which means an appropriate and legal -
compensation system is needed. Each of these activities requires thought and -
understanding about what works well given current employee concerns and
company conditions.
Gamification Makes HR Headline Evaluations Fun at Persistent Systems: The
managers at the international software and technology firm Persistent Solutions
wanted to improve employee performance evaluations. They turned to the
gamification company eMee to assist them in making performance management
more fun. Given that the organization employs over 7,000 people across the globe,
it was also important to make the act of conducting appraisals better. The resulting
approach incorporated gamification to bring together group interaction, worker
development, and individual recognition in a manner that enabled employees to
be more involved in a transparent evaluation process. The underlying premise of
eMee’s appraisal strategy is that employees are continuously provided information
about their performance instead of just getting it at the end of the year. In addition,
employees can manage the performance of peers, rather than simply relying on
the feedback provided by supervisors.
Performance is managed in a virtual environment, with avatars representing
employees. Virtual rewards can be given to employees by supervisors and
coworkers to recognize individuals for a job well done, and these rewards enable
employees to accumulate points that are compared to performance targets and
criteria. Reprimands can also be carried out in the virtual environment. The entire
process is integrated into Persistent Systems’ information management system,
which streamlines the management of performance in the company. As part of
eMee’s appraisal model, continual performance feedback is provided to Persistent
Systems’ employees from a variety of stakeholders and colleagues. This
has helped the, measure, and evaluate job performance so the
company better manage performance even though people may
move around in the company and have different bosses. The model
has been so successful that it is estimated that the company saved
over 28,000 hours of labor in a recent year by eliminating its old
approach. Attrition has also declined, while job satisfaction and
customer feedback have improved.
Performance management identifies the work that individuals need to
do to be effective and contribute to the mission and objectives of an
organization. The process should also encourage such that
improvements can be made.
Performance appraisal is the process of determining how well
employees do their jobs relative to a standard and communicating
that information to them. This tool is a key part of performance
management because it helps employees improve their job
performance.
Identifying and Measuring Employee Performance: Performance
criteria vary from job to job, but common employee performance
measures include the following:
• Quantity of output
• Quality of output
• Timeliness of output
• Presence/attendance on the job
• Efficiency of work completed
• Effectiveness of work completed
Weighting of Management Duties at Sample Firm Weight
Improve customer feedback 50%
Control operational costs 30%
Encourage quality improvements 20%
Total Management Performance 100%
Objectives of performance appraisal

1. To maintain records in order to determine compensation packages, wage

structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men
on right job.
3. To maintain and assess the potential in a person for growth and
development.
4. To provide a feedback to employees regarding their performance and
related status.
5. It serves as a basis for influencing working habits of the employees.
6. To review and retain the promotional and other training programmes.
Types of Performance Information
Performance Management Linkage
Uses of Performance Appraisals
Sources of appraisals
Employee Ratings of Managers
Team/Peer Ratings
Self-Ratings
Customer Ratings
360-Degree Rating
Tools for Appraising Performance
1.Graphic Rating Scales The graphic rating scale allows the rater to mark an
employee’s performance on a continuum indicating low to high levels of a
particular characteristic. Because of the straightforwardness of the process,
graphic rating scales are common in performance evaluations.

2. Behavioral Rating Scales In an attempt to overcome some of the concerns

with graphic rating scales, employers may use behavioral rating scales
designed to assess individual actions instead of personal attributes and
characteristics. Different approaches are used, but all describe specific
examples of employee job behaviors. In a behaviorally anchored rating scale
(BARS), these examples are “anchored” or measured against a scale of
performance levels
Ranking: The ranking method lists the employees being rated from highest
to lowest based on their performance levels and relative contributions.
Forced Distribution: Forced distribution is a technique for distributing ratings
that are generated with any of the other appraisal methods and
comparing the ratings of people in a work group.
Alternative ranking method

 Ranking employees from best to worst on a trait or traits

is another option. Since it is usually easier to distinguish
between the worst and best employees, an alternation
ranking method is most popular. First, list all subordinates
to be rated, and then cross out the names of any not
known well enough to rank. Then, on a form indicate
the employee who is the highest on the performance
dimension being measured and the one who is the
lowest. Then choose the next highest and the next
lowest, alternating between highest and lowest until all
employees have been ranked.
 Paired comparison method
 The paired comparison method makes the ranking method more
precise. For every trait (quantity of work, quality of work, and so on), you
compare every employee with every other employee. With, say, five
employees to rate, of all possible pairs of employees for each trait. Then
choose who the better employee of the pair is.

 Critical Incident: In the critical incident method, the manager keeps a

written record of both favorable and unfavorable actions performed by
an employee during the entire rating period.
MBO Process Implementing a guided self-appraisal system using MBO is a
four-stage process. The stages are as follows:
1. Job review and agreement: The employee and the superior review the
job description and the key activities that constitute the employee’s job.
The idea is to agree on the exact makeup of the job.
2. 2. Development of performance standards: Together, the employee and
his or her superior develop specific standards of performance and
determine a satisfactory level of performance that is specific and
measurable. For example, a quota of selling five cars a month may be
an appropriate performance standard for a salesperson.
3. 3. Setting of objectives: Together, the employee and the superior
establish objectives that are realistically attainable.
4. 4. Continuing performance discussions: The employee and the superior
use the objectives as a basis for continuing discussions about the
employee’s performance. Although a formal review session may be
scheduled, the employee and the supervisor do not necessarily wait until
the appointed time to discuss performance. Objectives can be mutually
modified as warranted.
Process of performance appraisal
 Establish performance expectations and standards
Appraisal processes start with establishing standards and
expectations. The essence of this is to make it easy for you to
identify particular output, skills, and accomplishments that will
be assessed.
 Providing regular feedback

This is simply about establishing effective communication

between you and the employees in regards to standards and
expectations. It is an important aspect because it helps in
ensuring that employees perform their roles by the goals and
objectives of the organization. Feedback can be provided
formally or can be communicated informally.
 Measure actual performance
This stage incorporates measuring of employees’ actual
performance based on information obtained from different
reports such as written, oral and statistical as well as through
personal observation. This is the stage that calls for a careful
choice of the ideal methods that are used in measuring
performance.
 Compare actual performance with standards
The next thing you need to do is comparing the actual
performance with the anticipated or standard performance.
This comparison is essential because it makes it possible for
you as the manager or evaluator to identify the deviations of
your employees from the established standards.
 Discuss results of appraisal
As earlier mentioned, Process Of Performance Appraisal is a
continuous process that takes time. As a manager, the next
thing you need to do is to ensure that you communicate the
feedback of appraisal to your employees on a one-on-one
basis.
 Come up with corrective measures
This is the final stage in appraisal processes. Initiating some
effective corrective measures should be executed
according to the results of the appraisal. Carefully examine
the results and identify areas that require improvement and
then come up with corrective action that will make it
possible for employees to improve performance
The Appraisal Interview: The appraisal interview presents both an
opportunity and a challenge. It can be an emotional experience for
the manager and the employee because the manager must
communicate both praise and constructive criticism. A major concern
for managers is how to emphasize the positive aspects of the
employee’s performance while still discussing ways to make needed
improvements.
Limitations associated with appraisals
1. unCleAr STAndArdS
This graphic rating scale seems objective. However, it might well result
in unfair appraisals, because the traits and degrees of merit are
ambiguous. For example, different supervisors might define “good”
performance, “fair” performance, and so on, differently. The same is
true of traits such as “quality of work.”
2. HAlo eFFeCT
Experts define halo effect as “the influence of a rater’s general
impression on ratings of specific ratee qualities
3. CenTrAl TendenCy
Central tendency means rating all employees average.
4. lenienCy or STriCTneSS
Other supervisors tend to rate all their subordinates high or low, just as some instructors
are notoriously high or low graders. This strictness/ leniency problem is especially severe
with graphic rating scales. Ranking forces supervisors to distinguish between high and
low performers.
5. Similarity Error:
The evaluator tries to look those qualities in subordinates which he himself possesses.
Those who show the similar characteristics are rated high.
6. Contrast Error: Rating should be done using established standards. One problem is
the contrast error, which is the tendency to rate people relative to others rather than
against performance standards. For example, if everyone else performs at a mediocre
level, then a person performing only slightly better may be rated as “excellent”
because of the contrast effect. But in a group where many employees are performing
well, the same person might receive a lower rating. Although it may be appropriate to
compare people at times, the performance rating usually should reflect comparison
against performance standards, not against other people
7. Sampling Error If the rater has seen only a small sample of the person’s work, an
appraisal may be subject to sampling error. For example, assume that 95% of the
reports prepared by an employee have been satisfactory, but a manager has seen
only the 5% that had errors. If the supervisor rates the person’s performance as “poor,”
then a sampling error has occurred.

8. Recency and Primacy Effects The recency effect occurs when a rater gives greater
weight to recent events when appraising an individual’s performance. Examples
include giving a customer service representative a rating based on phone calls taken
during the week before the appraisal or giving a drill press operator a high rating even
though the operator made the assigned quota only in the last two weeks of the rating
period. Another time-related issue is the primary effect, which occurs when a rater
gives greater weight to information received first when appraising an individual’s
performance.
Microsoft has always been on the cutting edge of performance management and
compensation. The firm has a reputation for hiring good employees and taking
care of them by providing generous rewards and opportunities. In particular,
paying workers based on their performance is an approach that the company has
utilized for some time. Over the last several decades, Microsoft has given
employees stock options, generous increases to base pay, and restricted stock
units. A number of years ago, the flexible rewards program My Microsoft was
offered, and it enabled workers to earn merit pay, bonuses, and restricted stock
units. In an effort to support this HR management philosophy, Microsoft
introduced a stack rankings process more recently, which required managers to
rate employees (on a scale of 1 to 5, with 1 being the highest) so that they could
be ultimately ranked against each other. These rankings affected the amount of
compensation (i.e., merit, bonuses, restricted stock units) employees would
receive. The ranking process also forced managers to designate a certain
percentage of their employees as poor performers.This requirement makes stack
ranking a con-troversial performance management approach be-cause there are
always losers, despite the fact that a company may be hiring and developing well.
Crit-ics also point out that the stack ranking process, or “rank and yank” as it is
sometimes called, doesn’t do much to create a sense of teamwork among em-
ployees.
Despite these limitations, some managers, including the previous CEO of General
Electric Jack Welch, defend the practice. They claim that it allows leaders to
effectively differentiate varying levels of job performance among employees more
effectively.
Given these concerns, Microsoft elected to drop its stack ranking system a few years
after it was adopted. This means that managers do not have to use the scaling and
ranking methods that were introduced several years earlier. In addition, managers do
not have to indicate through the employee appraisals that a percentage of workers are
not meeting standards. It will be interesting to see how managers continue to tweak
the company’s performance management system so that employees are rewarded
fairly and accurately for their job performance.
Questions
1. What is your overall opinion of the stack rank-ing system? Do you think this
approach serves a purpose in modern organizations?
2. What are the potential challenges associated with implementing this system?
COMPENSATION & BENEFITS
Compensating employees is often a major cost item for employers, so top management and
HR executives must work together toward aligning rewards with the strategic goals of the
organization. This allows companies to offer compensation that leads to overall
improvements to employee satisfaction and the bottom line. Several strategic decisions can
guide the design of compensation practices:
• Compliance with all applicable laws and regulations
• Cost-effectiveness for the organization
• Internal and external equity for employees
• Optimal mix of compensation components
• Performance enhancement for the organization
• Enhanced recruitment, involvement, and retention of employees
Base Pay :The basic compensation that an employee receives is called base pay.
Organizations often provide basic compensation as either an hourly wage or as a
salary. These two base pay categories are identified according to the way pay is de-
termined and the nature of the jobs.

Variable Pay Another type of direct pay is variable pay, which is compensation
linked directly to individual, team, or organizational performance. The most com-
mon types of variable pay are bonuses, incentive program payments, equity awards,
and commissions.
Benefits: Many organizations provide indirect rewards in the form of employee
benefits. With indirect compensation, employees receive financial rewards without
receiving actual cash or other direct monetary payments. A benefit is an indirect
reward given to an employee or group of employees as part of membership in the
organization, regardless of performance. Examples of benefits are dental coverage,
vacation leave, and retirement plans.
Laws Governing Compensation
Pay practices are regulated by several federal laws that address issues such as
overtime pay, minimum wage standards, hours of work, and pay equity. The
following discussion examines the laws and regulations affecting base compensation.
Fair Labor Standards Act (FLSA)
The primary federal law affecting compensation is the Fair Labor Standards Act
(FLSA), which was passed in 1938. Compliance with FLSA provisions is enforced
by the Wage and Hour Division of the U.S. Department of Labor (DOL). Penalties
for wage and hour violations often include awards of up to two years of back pay
for affected current and former employees, along with a monetary penalty. Willful
violations may be penalized by up to three years of back pay. For example, Walmart
was assessed almost $5 million in back wages and penalties for overtime violations
resulting from improperly classifying employees as exempt from overtime, and Sta-
ples was fined $42 million to settle similar claims. In another case, the airport
shuttle service at Baltimore-Washington International Thurgood Marshall Airport
“Shuttle Express” was ordered to arbitrate with an individual who claimed that he
was classified as an independent contractor or franchisee instead of an employee,
which adversely affected his compensation. The provisions of both the original act
and subsequent revisions focus on the following major areas
 Minimum Wages: The FLSA sets a minimum wage to be paid to a broad spectrum
of covered employees. The current minimum wage of $7.25 an hour was set as part
of the Fair Minimum Wage Act of 2007. A lower minimum wage of $2.13 an hour
is set for “tipped” employees, such as restaurant servers, but their compensation
must equal or exceed the minimum wage when average tips are included. However,
many states have minimum wage levels for both regular and tipped employees that
are higher than the federal minimum wage, and employers must pay this higher
wage.
Child Labor Provisions: There is often much legal speculation and litigation related
to paying employees minimum wages. For instance, Marriott’s announcement that it
would encourage tipping of housekeepers (by leaving tip envelopes in guest rooms)
has increased concern about the company paying these employees as tipped workers
at the appropriate lower minimum wage.
Exempt and Non-exempt employees:Under the FLSA, employees are classified as
exempt or nonexempt. Exempt employees hold positions for which they are not paid
overtime. Nonexempt employees must be paid overtime.
Overtime: The FLSA established overtime pay requirements at 1.5 times the regu-
lar pay rate for all hours worked over 40 in a week, except for exempt employees.
There are other exceptions to the overtime requirements, such as farm workers, but
these exceptions are rare. There has been a recent push to expand the number of ex-
empt employees who receive overtime, including managers in fast food outlets, loan
officers, computer technicians, and individuals working in some other executive and
professional jobs.
Special Pay/Overtime issues For individuals who are nonexempt, employers
must consider many issues. These include the following:
1. Compensatory time off: “Comp” hours are earned by public-sector nonexempt
employees in lieu of payment for extra time worked at the rate of 1.5 times the
number of hours over 40 that are worked in a week. Comp time is prohibited
in the private sector and cannot be legally offered to employees working for
private organizations.
2. Incentives for nonexempt employees: Employers must add the amount of direct
work-related incentives to an employee’s base pay and then calculate overtime
pay as 1.5 times the higher (adjusted) rate of pay.

3. Training time: Time spent in training must be counted as time worked by

nonexempt employees unless it is voluntary or not directly related to the job.

4. Security inspection time: Some companies may have to count the time that
employees spend going through security inspections after work as compen-
sable. Claims related to security inspection time have been brought against
organizations such as Amazon, Apple, and CVS Health.
5. After-hours email time: The increased use of email in organizations raises ques-
tions about whether employees can claim that responding to company emails
after hours should count toward overtime. Organizations should consider
adopting email curfew policies that discourage employees from reading and
answering work-related emails off the clock.
6. Travel time: Travel time must be counted as work time if it occurs during nor-
mal work hours for the benefit of the employer. Travel to and from work is not
considered compensable travel time.
Pay Equity Laws
Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race,
color, sex, religion, or national origin. However, prior to its passage, pay discrimina-
tion on the basis of sex was outlawed under the Equal Pay Act of 1963. Since then,
additional laws have been proposed or enacted to counter wage discrimination on
the basis of sex.
Equal Pay Act of 1963 The act prohibits companies from using different wage
scales for men and women performing substantially the same jobs. Pay differences
can be justified on the basis of merit, seniority, quantity or quality of work, expe-
rience, or factors other than gender. Similar pay must be given for jobs requiring
equal skills, equal responsibilities, or equal efforts, or for jobs done under similar
working conditions.
Lilly Ledbetter Fair Pay Act: This law was signed in 2009 in response to a
U.S. Supreme Court decision restricting the statute of limitations allowed under the
Equal Pay Act for claiming pay discrimination based on sex. Under the Equal Pay
Act, an employee alleging discrimination had up to 300 days to file a claim. The
Fair Pay Act essentially treats each paycheck as a new act of discrimination. Pay
discrimination need not be intentional to be unlawful. Pay practices resulting in
disparate impact are also actionable. Steps to reduce liability include conducting a
periodic disparate impact analysis of compensation plans, properly documenting all
compensation decisions, retaining complete pay records for an appropriate dura-
tion and limiting discretion in pay decisions to higher levels in the organization.
Organizational Climate and Compensation Philosophies:
1. Entitlement Philosophy: The entitlement philosophy assumes that individuals
who have worked another year with the company are entitled to pay increases
with little regard for performance differences. When organizations give automatic
increases to their employees every year, they are using the entitlement philosophy.
Most employees receive the same or nearly the same percentage increase. These au-
tomatic increases are often referred to as cost-of-living raises, even if they are not
tied specifically to economic indicators
performance Philosophy: A pay-for-performance philosophy assumes that
compensation decisions reflect performance differences.
Human Resource Metrics and Compensation:
Compensation Fairness and Equity:
External equity : If an employer’s rewards are not viewed as equitable compared
to other organizations, the employer is likely to experience higher turnover. This
also creates greater difficulty in recruiting qualified and high-demand individuals.
Internal equity Internal equity means that employees are compensated fairly
within the organization with regard to the KSAs they use in their jobs, as well as their
responsibilities, accomplishments, and job performance.
Pay Secrecy: Another equity issue concerns the degree of secrecy organizations
have regarding their pay systems. Pay information that may be kept secret in “closed”
systems relates to information about individual pay amounts, pay raises, and incen-
tive payouts.
Job evaluation
It is a formal, systematic process to determine the relative worth of
jobs within an organization.
The ranking method is a simple system that places jobs in order, from highest
to lowest, by their value to the organization.
The classification method is often used in public-sector organizations. Descriptions of
job classes are written, and then each job is put into a grade ac-
cording to the class it best matches
The factor-comparison method is a complex quantitative method that combines
the ranking and point factor methods.
Market Pricing
While the point factor method has served employers well for many years, the trend
is moving to a more externally focused approach. More companies are moving to
market pricing, which uses market pay data to identify the relative value of jobs based
on what other employers pay for similar jobs. A recent survey showed that 85% of
companies use market pricing to figure out how to value different jobs.

Pay Surveys
A pay survey is a collection of data on compensation rates for workers perform-
ing similar jobs in other organizations. Pay surveys are an important element for
establishing external pay equity. Both job evaluation and market pricing are tied to
surveys of the pay that other organizations provide for similar jobs
Pay Ranges:
Broad-banding:
The practice of using fewer pay grades with much broader ranges
than in traditional compensation systems is called broadbanding. Combining many
grades into these broad bands is designed to encourage horizontal movement and
therefore, more skill acquisition.
 Variable Pay
Variable pay is compensation that is tied to performance. Better performance leads
to greater rewards for employees. Performance may be evaluated and rewarded at
the individual, group (a team or even a whole plant), or entire organization level.
Variable Pay: Incentive for Performance
Key Performance Indicators
Critical success factors are variables that have a strong influence on the results of
the organization.
Key performance indicators (KPIs) are the scorecard measures that tell manag-
ers how well the organization is performing relative to the critical success factors.

Three Levels of Variable Pay:

Individual Level
Group level
Organizational level
1.Individual Incentives
Piece-Rate Systems
Bonuses
“Spot” Bonuses
Nonmonetary Incentives:
Performance Awards
Service Awards
2. Team Incentives
Gainsharing
Profit Sharing
A stock option plan
Employee Stock Ownership Plans
Managing Employee Benefits
A benefit is a tangible indirect reward provided to an employee or group of employees
for organizational membership.

Global Benefits
In many countries, a variety of benefits are provided through programs administered
by the government.
The costs of these benefits are often quite high due to generous retirement and health
insurance plans, coupled with an aging workforce and increasing
retiree populations.
Health care benefits also differ significantly worldwide. Developed nations
(with the exception of the United States until very recently) are far more likely to
provide compulsory, government-sponsored health plans for all citizens, regard-
less of employment status
The amount of paid leave provided to employees also varies significantly in dif-
ferent countries. Paid time off for childbirth and medical disability are generous in
Scandinavian and European countries, and they provide lengthy paid leave for new
mothers.
Given these various issues, companies that employ people in different coun-
tries face a number of challenges.
Multinational companies operating in various countries must determine how to
compensate both host-country nationals and expatriates so that all employees will feel
that they are being treated fairly.
Benefits Design
Flexible Benefits :As part of both benefits design and administration, employers
may offer employees choices in benefits. A flexible benefits plan is a program that
allows employees to select the benefits they prefer from options established by the
employer
Domestic Partner Benefits: There have been a number of challenges to how
marriages are defined at different state and federal levels, with cases focusing on
the Defense of Marriage Act (DOMA), as well as whether and how to recognize
same-sex marriage. The U.S. Supreme Court recently voted against DOMA, which
changed the way terms such as marriage and spouse are defined and essentially
treats same-sex spouses the same as opposite-sex married couples. This means that
same-sex spouses may be entitled to certain benefit plans, and if same-sex couples
get divorced, one partner may be entitled to a share of retirement benefits.
In states where gay marriage is legal, companies have to consider whether to
treat same-sex spouses in the same manner as traditional married couples with re-
gard to benefits. This issue is made even more complicated when organizations have
operations in multiple states with varying laws
Older Workers Benefit Needs: Hiring and retaining older workers can be an
important strategy for an organization seeking high-quality talent with a wealth of
knowledge and experience. Modified work schedules, part-time benefits, and sim
plified seasonal travel can be attractive to older workers.
Types of Benefits:
A cafeteria benefit plan is one in which employees are given a budget and can pur-
chase the bundle of benefits most important to them from the “menu” of options
offered by the employer
Legally Required Benefits
1. Social Security Employees and employers share in the cost of Social Security
through a tax on employees’ wages or salaries. When the law was first enacted,
em-ployers and employees each contributed 1% of worker wages to the fund. By
1990, the rate had increased to 6.2% paid by each party (for a total of 12.4%),
which is the current rate of payroll tax contributions. Normal retirement age to
receive maximum Social Security benefits has been steadily increased from 65 to
67. Starting in 2015, the taxable wage base was increased from $117,000 to
$118,500, with earnings over that amount not being subject to Social Security
tax.
2. Medicare Medicare is a government-operated health insurance program for older
Americans. Each party pays 1.45% of employee earnings. Unlike the taxes paid
for Social Security, there is no earnings limit on Medicare contributions.
Retirement Plans
1. Defined Benefit Pension Plans A traditional pension plan is one in which the
employer makes required contributions and the employee receives a defined
amount each month upon retirement. A defined benefit plan is a retirement
program in which employees are promised a pension amount based on age and
years of service.
2. Defined Contribution Pension Plans A defined contribution plan is a retire-
ment program in which the employer and/or employee makes an annual payment
to an employee’s retirement account. The key to this plan is the contribution rate;
employee retirement benefits depend on fixed contributions and investment earn-
ings
Health Care Benefits
Employers provide a variety of health care and medical benefits, usually through
insurance coverage. Major changes brought about by the Patient Protection and
Affordable Care Act (PPACA), which is still evolving, may significantly alter the
involvement of employers in providing these essential benefits
Health Care Legislation
1. COBrA Provisions The Consolidated Omnibus Budget Reconciliation Act
(COBRA) requires that most employers with 20 or more full-time and/or part-
time employees offer extended health care coverage to certain groups of plan
participants.
2. HiPAA Provisions The Health Insurance Portability and Accountability Act
(HIPAA) of 1996 allows employees to switch their health insurance plans when
they change employers and to enroll in health coverage with the new company
regardless of pre-existing health conditions. The statute also prohibits group
insurance plans from dropping coverage for a sick employee and requires them to
make individual coverage available to people who leave group plans.
Family-Oriented Benefit
FMLA Leave Provisions The law requires employers to allow eligible employ-
ees to take a maximum of 12 weeks of unpaid, job-protected leave during any
12-month period for the following situations:
• Birth of a child and care for the newborn within one year of birth
• Adoption or foster care placement of a child
• Caring for a spouse, child, or parent with a serious health condition
• Serious health condition of the employee.
Paid-Time-Off Benefits
1. Vacation Pay
2. Holiday Pay
3. Leaves of Absence
a) Family Leave
b) Sick leaves