Financial Case Study: Quality Auto Parts

1. Define and explain the significance of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks)

1. Ch 1, page 60-61, question 4: What is “evidence based HR”? Why might an HR department resist becoming evidenced based?

2. Give some examples of ethical issues that you have experienced in jobs, and explain how HR did or did not help resolve them.

Most of the plans have a higher deductible, which allows the person holding the policy to have lower premiums. In order to control costs and compete for contract, the plans offer many managed care features (Valerius, Bayes, Newby, Seggern , 2008).

Employer sponsored health insurance is a health policy chosen and purchased by the employer and is provided to qualified employees and their families. Employers usually shares the insurance premium with employers. Employee based health insurance started early as 1910. Before World War II, only a few Americans had health insurance, but it only covered the hospital room, board, and ancillary services. During the war, more employee-based health insurances were being given to employees due to frozen wages by the National War Labor Board worker shortage. Employers were figuring out a way to attract employees to work and stay in their company, which meant that providing health insurance was the best option. Offering health insurance drew

Risk adverse customers buy health insurance to avoid losing income or wealth when indisposed (University of Phoenix, 2011). The insurance company in this case Castor Collins bears the risk in return for the premium and takes care of enrollees’ medical expenses (in part or full) when indisposed (University of Phoenix, 2011). The premium that Castor Collins receives is a source of revenue (University of Phoenix, 2011). It is

The biggest concern is to cover the taxpayers if the company does not perform as expected, which can be done with a form of insurance. By limiting potential buyers to only the most financially stable and reputable, chances of mismanagement become negligible.

Self-Insurance Plans that allows employers and businesses assume financial liability and the responsibilities of an insurer for their own employees.

The Affordable Care Act contains various exemptions and drawbacks. One big exception to this rule is for companies that “self-insure,” where they pay for their employees’ medical care (often buying “stop loss” insurance policy plan to secure the business from very high costs) rather than buying health insurance policy plan coverage for their workers. Self-insured plans do not have to offer the “essential health and fitness benefits” that each condition has described, they are exempt from the annually insurance policy plan fee that protected little groups must pay, and they will not enhance (or receive) state-based risk developments for protected little groups and individuals.

The purpose of this report is to clarify the payroll treatment of health insurance, specifically for S corporations with fewer than 50 employees. The Internal Revenue Service (IRS), in IRB Notice 2015-17, states that in the absence of a group plan, it is acceptable to reimburse for one plan. However; guidance is unclear in regard to multiple plan reimbursements, and if misinterpreted the business faces fines in the amount of $365 per employee, per violation, per day. This paper will provide analysis of reimbursement options and recommend against the S corporation reimbursing multiple plans. Additionally, options for the S corporation with respect to the reimbursement of employee insurance premiums outside of a group plan will be examined. This paper will show that the best option is to give the employee a raise. Also examined in this paper is the many conflicting opinions on health insurance treatment in regard to payroll. This paper will provide, through analysis of current guidance, a recommendation for compliance with current guidelines and laws.

Partially self-funded healthcare plans not only reduce your healthcare costs but also provide better coverage for your employees and potentially lower out of pocket expense.

b. Self-insurance means protect yourself or your interests by maintaining the fund to cover possible losses rather than buying insurance policies.

There are different risks involved with both types of plans. Typically, smaller companies with fewer employees opt for fully-insured plans and larger companies with 5000 or more employees opt to be self-insured. According to the Employee Benefits Research Institute (EBRI) “in 2008, 88 percent of workers in firms with 3-199 employees were in fully insured plans” and “89 percent of workers employed in firms with 5000 or more employees were in self-insured plans.” (MacDonald, 2009) The EBRI Fast Facts paper goes on to say overall for that same year 45 percent of workers in the health insurance market share were covered by fully-insured plans versus 55 percent for self-insured plans.

1. The piecework system is more likely to succeed when all of the following are true except:

Human Resource Management involves a wide array of functions that encompasses the time from when an employee enters an organization to the time the employee leaves the organization. The specific activities that are involved in HRM include job design and analysis, recruitment, orientation and placement, development and training of the personnel, employee remuneration, and performance appraisal (Aswathappa, 2007: 5). This paper shall focus on three main activities which are recruitment, training, and personnel development. When it comes to recruitment, it is incumbent upon the Human Resource Manager to bring into the workforce, employees that are both wiling and competent to accomplish specific tasks. The work of recruitment goes hand in