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Glossary of Human Resource Mgmt 11th Ed. ENTIRE BOOK

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Collaborative HR
The process of HR professionals from several different organizations working jointly to address shared business problems.
Core competency
A unique capability that creates high value and differentiates an organization from its competition.
HR Generalist
A person who has responsibility for performing a variety of HR activities.
HR Specialist
A person who has in-depth knowledge and expertise in a limited area of HR.
Human capital
The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.
Human Resource (HR) management
The direction of organizational systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.
Human resource management system (HRMS)
An integrated system providing information used by HR management in decision making.
Organizational culture
The shared values and beliefs of a workforce.
Benchmarking
Comparing specific measures of performance against data on those measures in other organizations.
Culture
Societal forces affecting the values, beliefs, and actions of a distinct group of people.
Economic value added (EVA)
Net operating profit of a firm after the cost of capital is deducted.
Effectiveness
The extent to which goals have been met.
Efficiency
The degree to which operations are done in an economical manner.
Environmental scanning
Process of studying the environment of the organization to pinpoint opportunities and threats.
Forecasting
Using information from the past and the present to identify expected future conditions.
Global organization
Firm that has corporate units in a number of countries that are integrated to operate worldwide.
HR audit
Formal research effort that evaluates the current state of HR management in an organization.
HR metrics
Specific measures tied to HR performance indicators.
HR Strategies
Means used to anticipate and manage the supply of and demand for human resources.
Human resource (HR) planning
Process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives.
Importing and exporting
Buying and selling goods and services with organizations in other countries.
Individualism
Dimension of culture that refers to the extent to which people in a country prefer to act as individuals instead of members of groups.
Long-term orientation
Dimension of culture that refers to the preference of people in a country for long-term values as opposed to short-term values.
Masculinity/femininity
Dimension of culture that refers to the degree to which “masculine” values prevail over “feminine” values.
Multi-national enterprise (MNE)
Organization that has operating units located in foreign countries.
Power distance
Dimension of culture that refers to the inequality among the people of a nation.
Productivity
Measure of the quantity and quality of work done, considering the cost of the resources used.
Return on investment (ROI)
Calculation showing the value of expenditures for HR activities.
Strategic HR management
Use of employees to gain or keep a competitive advantage, resulting in greater organizational effectiveness.
Succession planning
Process of identifying a longer-term plan for the orderly replacement of key employees.
Uncertainty avoidance
Dimension of culture that refers to the preference of people in a country for structured rather than unstructured situations.
Unit labor cost
Computed by dividing the average cost of workers by their average levels of output.
Attitude survey
A survey that focuses on employees’ feelings and beliefs about their jobs and the organization.
Exit interview
An interview in which individuals are asked to give their reasons for leaving the organization.
Job satisfaction
A positive emotional state resulting from evaluating one’s job experiences.
Motivation
The desire within a person causing that person to act.
Organizational commitment
The degree to which employees believe in and accept organizational goals and desire to remain with the organization.
Psychological contract
The unwritten expectations employees and employers have about the nature of their work relationships.
Turnover
The process in which employees leave an organization and have to be replaced.
4/5ths rule
Discrimination exists if the selection rate for a protected group is less than 80% (4/5ths) of the selection rate for the majority group or less than 80% of the majority group’s representation in the relevant labor market.
Affirmative action
Employers are urged to hire groups of people based on their race, age, gender, or national origin, to make up for historical discrimination.
Blind to differences
Differences among people should be ignored and everyone should be treated equally.
Bona fide occupational qualification (BFOQ)
Characteristic providing a legitimate reason why an employer can exclude persons on otherwise illegal bases of consideration.
Burden of proof
What individuals who file suit against employers must prove in order to establish that illegal discrimination has occurred.
Business necessity
Practice necessary for safe and efficient organizational operations.
Concurrent validity
Measured when an employer tests current employees and correlates the scores with their performance ratings.
Content validity
Validity measured by a logical, non-statistical method to identify the KSAs and other characteristics necessary to perform a job.
Correlation coefficient
Index number giving the relationship between a predictor and a criterion variable.
Criterion-related validity
Validity measured by a procedure that uses a test as the predictor of how well an individual will perform on the job.
Disabled person
Someone who has a physical or mental impairment that substantially limits life activities, who has a record of such an impairment, or who is regarded as having such an impairment.
Disparate impact
Occurs when members of a protected class are substantially under-represented as a result of employment decisions that work to their disadvantage.
Disparate treatment
Occurs when members of a protected class are treated differently from others.
Employment “test”
Any employment procedure used as the basis for making an employment-related decision.
Equal employment
Employment that is not affected by illegal discrimination.
Essential job functions
Fundamental duties of a job.
Mediation
Dispute resolution process by which a third party helps negotiators reach a settlement.
Pay equity
Similarity in pay for all jobs requiring comparable knowledge, skills, and abilities, even if actual duties and market rates differ significantly.
Predictive validity
Measured when test results of applicants are compared with subsequent job performance.
Protected class
Individuals within a group identified for protection under equal employment laws and regulations.
Reasonable accommodation
A modification or adjustment to a job or work environment for a qualified individual with a disability.
Reliability
Consistency with which a test measures an item.
Retaliation
Punitive actions taken by employers against individuals who exercise their legal rights.
Sexual harassment
Actions that are sexually directed, are unwanted, and subject the worker to adverse employment conditions or create a hostile work environment.
Undue hardship
Significant difficulty or expense imposed on an employer in making an accommodation for individuals with disabilities.
Validity
Extent to which a test actually measures what it says it measures.
Affirmative action plan (AAP)
Formal document that an employer compiles annually for submission to enforcement agencies.
Availability analysis
Identifies the number of protected-class members available to work in the appropriate labor markets for given jobs.
Glass ceiling
Discriminatory practices that have prevented women and other protected-class members from advancing to executive-level jobs.
Hostile environment
Sexual harassment in which an individual’s work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions.
Nepotism
Practice of allowing relatives to work for the same employer.
Phased retirement
Approach in which employees gradually reduce their workloads and pay.
Quid pro quo
Sexual harassment in which employment outcomes are linked to the individual granting sexual favors.
Reverse discrimination
When a person is denied an opportunity because of preferences given to protected-class individuals who may be less qualified.
Utilization analysis
Identifies the number of protected-class members employed in the organization and the types of jobs they hold.
Autonomy
Extent of individual freedom and discretion in the work and its scheduling.
Business process re-engineering (BPR)
Measures for improving such activities as product development, customer service, and service delivery.
Competencies
Individual capabilities that can be linked to enhanced performance by individuals or teams.
Compressed workweek
Schedule in which a full week’s work is accomplished in fewer than 5 8-hour days.
Duty
Larger work segment composed of several tasks that are performed by an individual.
Feedback
Amount of information employees receive about how well or how poorly they have performed.
Flextime
Scheduling arrangement in which employees work a set number of hours a day but vary starting and ending times.
Job
Grouping of tasks, duties, and responsibilities that constitutes the total work assignment for employees.
Job analysis
Systematic way of gathering and analyzing information about the content, context, and human requirements of jobs.
Job description
Identification of the tasks, duties, and responsibilities of a job.
Job design
Organizing tasks, duties, and responsibilities into a productive unit of work.
Job enlargement
Broadening the scope of a job by expanding the number of different tasks to be performed.
Job enrichment
Increasing the depth of a job by adding responsibility for planning, organizing, controlling, or evaluating the job.
Job rotation
Process of shifting a person from job to job.
Job sharing
Scheduling arrangement in which two employees perform the work of one full-time job.
Job specifications
The knowledge, skills, and abilities (KSAs) an individual needs to perform a job satisfactorily.
Marginal job functions
Duties that are part of a job but are incidental or ancillary to the purpose and nature of the job.
Performance standards
Indicators of what the job accomplishes and how performance is measured in key areas of the job description.
Person/job fit
Matching the KSAs of people with the characteristics of jobs.
Responsibilities
Obligations to perform certain tasks and duties.
Self-directed team
Organizational team composed of individuals who are assigned a cluster of tasks, duties and responsibilities to be accomplished.
Skill variety
Extent to which the work requires several different activities for successful completion.
Special-purpose team
Organizational team formed to address specific problems, improve work processes, and enhance product and service quality.
Task
Distinct, identifiable work activity composed of motions.
Task identity
Extent to which the job includes a “whole” identifiable unit of work that is carried out from start to finish and that results in a visible outcome.
Task significance
Impact the job has on other people.
Virtual team
Organizational team composed of individuals who are geographically separated but linked by communications technology.
Work
Effort directed toward accomplishing results.
Workflow analysis
Study of the way work (inputs, activities, and outputs) moves through an organization.
Acceptance rate
Percent of applicants hired divided by total number of applicants.
Applicant pool
All persons who are actually evaluated for selection.
Applicant population
A subset of the labor force population that is available for selection using a particular recruiting approach.
Flexible staffing
Use of workers who are not traditional employees.
Independent contractors
Workers who perform specific services on a contract basis.
Job posting
System in which the employer provides notices of job openings and employees respond by applying.
Labor force population
All individuals who are available for selection if all possible recruitment strategies are used.
Labor markets
External supply pool from which organizations attract employees.
Recruiting
Process of generating a pool of qualified applicants for organizational jobs.
Selection rate
Percentage hired from a given group of candidates.
Yield ratios
Comparisons of the number of applicants at one stage of the recruiting process with the number at the next stage.
Behavioral interview
Interview in which applicants give specific examples of how they have performed a certain task or handled a problem in the past.
Cognitive ability tests
Tests that measure an individual’s thinking, memory, reasoning, verbal, and mathematical abilities.
Expatriate
Citizen of one country who is working in a second country and employed by an organization headquartered in the first country.
Host-country national
Citizen of one country who is working in that country and employed by an organization headquartered in a second country.
Negligent hiring
Occurs when an employer fails to check an employee’s background and the employee injures someone.
Negligent retention
Occurs when an employer becomes aware that an employee may be unfit for employment, continues to employ the person, and the person injures someone.
Non-directive interview
Interview that uses questions developed from the answers to previous questions.
Panel interview
Interview in which several interviewers meet with the candidate at the same time.
Person-organization fit
The congruence between individuals and organizational factors.
Physical ability tests
Tests that measure an individual’s abilities such as strength, endurance, and muscular movement.
Placement
Fitting a person to the right job.
Predictors
Measurable or visible indicators of a selection criterion.
Psychomotor tests
Tests that measure dexterity, hand-eye coordination, arm-hand steadiness, and other factors.
Realistic job preview (RJP)
Process through which a job applicant receives an accurate picture of a job.
Selection
Process of choosing individuals with qualifications needed to fill jobs in an organization.
Selection criterion
Characteristic that a person must have to do a job successfully.
Situational interview
Structured interview composed of questions about how applicants might handle specific job situations.
Situational judgment tests
Tests that measure a person’s judgment in work settings.
Stress interview
Interview designed to create anxiety and put pressure on applicants to see how they respond.
Structured interview
Interview that uses a set of standardized questions asked of all job applicants.
Team interview
Interview in which applicants are interviewed by the team members with whom they will work.
Third-country national
Citizen of one country who is working in a second country and employed by an organization headquartered in a third country.
Work sample tests
Tests that require an applicant to perform a simulated job task.
Active practice
Performance of job-related tasks and duties by trainees during training.
Behavior modeling
Copying someone else’s behavior.
Cost-benefit analysis
Comparison of costs and benefits associated with training.
Cross training
Training people to do more than one job.
E-learning
Use of the Internet or an organizational intranet to conduct training on-line.
Immediate confirmation
Based on the idea that people learn best if reinforcement and feedback are given after training.
Informal training
Training that occurs through interactions and feedback among employees.
Knowledge management
The way an organization identifies and leverages knowledge in order to be competitive.
Massed practice
Practice performed all at once.
Orientation
Planned introduction of new employees to their jobs, co-workers, and the organization.
Performance consulting
Process in which a trainer and the organizational client work together to determine what needs to be done to improve results.
Reinforcement
Based on the idea that people tend to repeat responses that give them some type of positive reward and avoid actions associated with negative consequences.
Self-efficacy
Person’s belief that he or she can successfully learn the training program content.
Spaced practice
Practice performed in several sessions spaced over a period of hours or days.
Training
Process whereby people acquire capabilities to perform jobs.
Assessment centers
Collections of instruments and exercises designed to diagnose individuals’ development needs.
Career
Series of work-related positions a person occupies throughout life.
Career paths
Represent employees’ movements through opportunities over time.
Coaching
Training and feedback given to employees by immediate supervisors.
Development
Efforts to improve employees’ abilities to handle a variety of assignments and to cultivate employees’ capabilities beyond those required by the current job.
Dual-career ladder
System that allows a person to advance up either a management ladder or a corresponding ladder on the technical/professional side of a career.
Encapsulated development
Situation in which an individual learns new methods and ideas in a development course and returns to a work unit that is still bound by old attitudes and methods.
Individual-centered career planning
Career planning focusing on an individual’s career rather than on organizational needs.
Management mentoring
Relationship in which experienced managers aid individuals in the earlier stages of their careers.
Organization-centered career planning
Career planning that focuses on identifying career paths that provide for the logical progression of people between jobs in an organization.
Repatriation
Planning, training, and reassignment of global employees to their home countries.
Sabbatical
Paid time off the job to develop and rejuvenate oneself.
Simulation
Technique that requires participants to analyze a situation and decide the best course of action according to data given.
Central tendency error
Occurs when a rater gives all employees a score within a narrow range in the middle of the scale.
Contrast error
Tendency to rate people relative to others rather than against performance standards.
Forced distribution
Performance appraisal method in which ratings of employees’ performance are distributed along a bell-shaped curve.
Graphic rating scale
Scale that allows the rater to mark an employee’s performance on a continuum.
Halo effect
Occurs when a rater scores an employee high on all job criteria because of performance in one area.
Job criteria
Important elements in a given job.
Leniency error
Occurs when ratings of all employees fall at the high end of the scale.
Management by objectives (MBO)
Performance appraisal method that specifies the performance goals that an individual and manager mutually identify.
Performance appraisal
Process of evaluating how well employees perform their jobs and then communicating that information to the employees.
Performance management
Composed of the processes used to identify, measure, communicate, develop, and reward employee performance.
Primacy effect
Occurs when a rater gives greater weight to information received first when appraising an individual’s performance.
Ranking
Performance appraisal method in which all employees are listed from highest to lowest in performance.
Rater bias
Occurs when a rater’s values or prejudices distort the rating.
Recency effect
Occurs when a rater gives greater weight to recent events when appraising an individual’s performance.
Strictness error
Occurs when ratings of all employees fall at the low end of the scale.
Balance-sheet approach
Compensation plan that equalizes cost differences between identical international and home-country assignments.
Base pay
Basic compensation that an employee receives, usually as a wage or a salary.
Benchmark jobs
Jobs found in many organizations.
Benefit
Indirect reward given to an employee or a group of employees for organizational membership.
Broadbanding
Practice of using fewer pay grades with much broader ranges than in traditional compensation systems.
Compa-ratio
Pay level divided by the midpoint of the pay range.
Compensable factor
Factor that identifies a job value commonly present throughout a group of jobs.
Compensatory time off
Hours given to an employee in lieu of payment for extra time worked.
Competency-based pay
Rewards individuals for the capabilities they demonstrate and acquire.
Distributive justice
Perceived fairness in the distribution of outcomes.
Entitlement philosophy
Assumes that individuals who have worked another year are entitled to pay increases, with little regard for performance differences.
Equity
Perceived fairness between what a person does and what the person receives.
Exempt employees
Employees to whom employers are not required to pay overtime under the Fair Labor Standards Act.
Garnishment
A court action in which a portion of an employee’s wages is set aside to pay a debt owed a creditor.
Global market approach
Compensation plan that attempts to be more comprehensive in providing base pay, incentives, benefits, and relocation expenses regardless of the country to which the employee is assigned.
Green-circled employee
Incumbent who is paid below the range set for the job.
Job evaluation
Formal, systematic means to identify the relative worth of jobs within an organization.
Job family
Group of jobs having common organizational characteristics.
Living wage
One that is supposed to meet the basic needs of a worker’s family.
Lump-sum increase (LSI)
One-time payment of all or part of a yearly pay increase.
Market banding
Grouping jobs into pay grades based on similar market survey amounts.
Market line
Graph line that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates.
Market pricing
Use of pay survey data to identify the relative value of jobs based on what other employers pay for similar jobs.
Non-exempt employees
Employees who must be paid overtime under the Fair Labor Standards Act.
Pay compression
Occurs when the pay differences among individuals with different levels of experience and performance become small.
Pay grades
Groupings of individual jobs having approximately the same job worth.
Pay survey
Collection of data on compensation rates for workers performing similar jobs in other organizations.
Pay-for-performance philosophy
Requires that compensation changes reflect individual performance differences.
Procedural justice
Perceived fairness of the process and procedures used to make decisions about employees.
Red-circled employee
Incumbent who is paid above the range set for the job.
Salaries
Consistent payments made each period regardless of the number of hours worked.
Seniority
Time spent in the organization or on a particular job.
Tax equalization plan
Compensation plan used to protect expatriates from negative tax consequences.
Variable pay
Compensation linked to individual, group/team, and/or organizational performance.
Wages
Payments directly calculated on the amount of time worked.
Bonus
One-time payment that does not become part of the employee’s base pay.
Commission
Compensation computed as a percentage of sales in units or dollars.
Compensation committee
Subgroup of the board of directors, composed of directors who are not officers of the firm.
Draw
Amount advanced from and repaid to future commissions earned by the employee.
Employee stock ownership plan (ESOP)
Plan whereby employees have significant stock ownership in their employers.
Gainsharing
System of sharing with employees greater-than-expected gains in profits and/or productivity.
Perquisites (perks)
Special benefits—usually non-cash items—for executives.
Profit sharing
System to distribute a portion of the profits of the organization to employees.
Stock option plan
Plan that gives employees the right to purchase a fixed number of shares of company stock at a specified price for a limited period of time.
Straight piece-rate system
Pay system in which wages are determined by multiplying the number of units produced by the piece rate for one unit.
401(k) plan
Agreement in which a percentage of an employee’s pay is withheld and invested in a tax-deferred account.
Adverse selection
Situation in which only higher-risk employees select and use certain benefits.
Cash balance plan
Retirement program in which benefits are based on an accumulation of annual company contributions, expressed as a percentage of pay, plus interest credited each year.
Co-payment
Strategy requiring employees to pay a portion of the cost of insurance premiums, medical care, and prescription drugs.
Consumer-driven health (CDH) plan
One that provides employer financial contributions to employees to cover their own health-related expenses.
Contributory plan
Pension plan in which the money for pension benefits is paid in by both employees and employers.
Defined-benefit plan
Retirement program in which an employee is promised a pension amount based on age and service.
Defined-contribution plan
Retirement program in which the employer makes an annual payment to an employee’s pension account.
Flexible benefits plan
Program that allows employees to select the benefits they prefer from groups of benefits established by the employer.
Flexible spending accounts
Benefits plans that allow employees to contribute pre-tax dollars to buy certain additional benefits.
Health maintenance organization (HMO)
Plan that provides services for a fixed period on a pre-paid basis.
Managed care
Approaches that monitor and reduce medical costs through restrictions and market system alternatives.
Non-contributory plan
Pension plan in which all the funds for pension benefits are provided by the employer.
Paid-time-off (PTO) plans
Plans that combine all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay.
Pension plan
Retirement program established and funded by the employer and employees.
Portability
A pension plan feature that allows employees to move their pension benefits from one employer to another.
Preferred provider organization (PPO)
A health-care provider that contracts with an employer group to supply health-care services to employees at a competitive rate.

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