Question

1. What are the objectives of the unemployment insurance program established by the Social Security Act of 1935? How is this program funded?

2. Describe the three phases of international assignments.

3. What are the different types of pay for rewarding individual performance?

Answer 1

1. Unemployment Insurance Program - The railroad unemployment insurance system was also established in the 1930's. The great depression demonstrated the need for unemployment compensation programs, and the Social Security Act of 1935 created State unemployment programs. While the state unemployment programs generally covered railroad workers, railroad operations which crossed State lines caused special problems. In some instances, one State denied compensation for unemployed railroad workers because their employers had paid unemployment taxes in another State. Although, there were cases where employees appeared to be covered in more than one state, they often did not qualify in any. A Federal study commission, which reported on the nationwide state plans for unemployment insurance, recommended that a separate plan cover railroad workers because of complications with the state plans. Congress then enacted the Railroad Unemployment Insurance Act in June 1938. The act established a system of benefits for unemployed railroaders, financed entirely by railroad employers and administered by the RRB legislation added sickness benefits in 1946.

2. There are different types of International assignments that are often determined by duration and vary according to the purpose and objectives of the task. The three broad categories of international assignments comprise of short term, extended and traditional long term assignments.

• Short term assignments are up to 6 months duration. The purpose of these assignments is often for management development or problem solving and can include roles such as project supervision until a more long term arrangement can be found in the host country. In most short-term assignments, expatriates are unaccompanied by family and receive less company benefits to support the relocation.

• Extended assignments are extended short term assignments that last up to one year. MNC's have traditionally sent employees on traditional long term assignments.

• Traditional long term assignments range from 12 -36 months and require the most rigorous expatriate selection and training. Expatriates on traditional assignments receive support including relocation benefits, housing allowances and annual home leave.

3.  There are different types of Pay Rewards like Piecework Pay, Merit Pay, Performance Pay, Standard Hour Pay and Sales Commission pay.