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Human Resource Management 2


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Core Competencies
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers
The planned elimination of jobs (“head count”).
Employee Leasing
The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees.
The trend toward opening up foreign markets to international trade and investment.
Human capital
"The knowledge, skills, and capabilities of individuals that have economic value to an organization."
Human Resources Information System (HRIS)
Computerized system that provides current and accurate data for purposes of control and decision making.
Knowledge Workers
"Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving."
Managing Diversity
"Being aware of characteristics common to employees, while also managing employees as individuals."
Contracting outside the organization to have work done that formerly was done by internal employees
Proactive change
Change initiated to take advantage of targeted opportunities
Reactive change
Change that occurs after external forces have already affected performance
"Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed."
Six Sigma
A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another.
Total Quality Management (TQM)
"A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement."
Adverse impact
"The rejection of a significantly higher percentage of a protected class for employment, placement, or promotion when compared with the successful, non-protected class."
Affirmative Action
Policy that goes beyond equal employment opportunity by requiring organizations to comply with the law and correct past discriminatory practices by increasing the numbers of minorities and women in specific positions.
Bona Fide Occupational Qualification (BFOQ)
"Suitable defense against a discrimination charge only where age, religion, sex, or national origin is an actual qualification for performing the job."
Business Necessity
Work-related practice that is necessary to the safe and efficient operation of an organization.
Charge form
Discrimination complaint filed with the EEOC by employees or job applicants
Disabled individual
"Any person who (1) has a physical or mental impairment that substantially limits one or more of the persons major life activities, (2) has a record of such impairment, or (3) is regarded as having such an impairment"
Disparate treatment
An employerÂ’s intentional unequal treatment or evaluation by different standards of protected-class members.
EEO-1 report
An employer information report that must be filed annually by employers of 100 or more employees to determine an employer's workforce composition
Equal Employment Opportunity (EEO)
"The treatment of individuals in all aspects of employment — hiring, promotion, training, etc.— in a fair and non-biased manner."
Fair Employment Practices (FEPs)
State and local laws governing equal employment opportunity that are often more comprehensive than federal laws.
Four-Fifths Rule or Adverse Rejection Rate
Rule of thumb followed by the EEOC in determining adverse impact for use in enforcement proceedings.
Protected classes
"Individuals of a minority race, women, older people, and those with disabilities who are covered by federal laws on equal employment opportunity"
Reasonable accommodation
"Attempt by employers to adjust, without undue hardship, the working conditions or schedules of employees with disabilities or religious preferences"
Reverse Discrimination
The act of giving preference to members of protected classes to the extent that unprotected individuals believe they are suffering discrimination.
Sexual harassment
"Unwelcome advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in the working environment"
Uniform Guidelines on Employee Selection Procedures
Procedural document published in the Federal Register to assist employers in complying with federal regulations against discriminatory actions
Workforce Utilization Analysis
The process of comparing the composition by race and sex for jobs within an organization against composition of the employerÂ’s relevant labor market.
Critical Incident Method
Job analysis method by which job tasks are identified that are critical to job success
Employee Empowerment
"Granting employees power to initiate change, thereby encouraging them to take charge of what they do"
Employee Involvement Groups (EIs)
Groups of employees who meet to resolve problems or offer suggestions for organizational improvement
Employee Teams
"An employee contributions technique whereby: Work functions are structured for groups rather than for individuals. Team members are given discretion in matters traditionally considered management prerogatives, such as process improvements, product or service development, and individual work assignments."
An interdisciplinary approach to designing equipment and systems that can be easily and efficiently used by human beings
"Working hours that permit employees the option of choosing daily starting and quitting times, provided that they work a set number of hours per day or week"
Functional Job Analysis (FJA)
"Quantitative approach to job analysis that utilizes a compiled inventory of the various functions or work activities that can make up any job. Assumes that each job involves three broad worker functions: (1) data, (2) people, and (3) things."
Industrial Engineering
A field of study concerned with analyzing work methods and establishing time standards
A group of related activities and duties
Job Analysis
"The process of obtaining information about jobs by determining what the duties, tasks, or activities of jobs are."
Job Characteristics Model (Hackman and Oldham)
"Job design that purports that three psychological states (experiencing meaningfulness of the work performed, responsibility for work outcomes, and knowledge of the results of the work performed) of a jobholder result in improved work performance, internal motivation, and lower absenteeism and turnover."
Job Description
"Statement of the tasks, duties, and responsibilities (TDRs) of a job to be performed"
Job Design
An outgrowth of job analysis that improves jobs through technological and human considerations in order to enhance organization efficiency and employee job satisfaction.
Job Enrichment (Herzberg)
Enhancing a job by adding more meaningful tasks and duties (vertical expansion) to make the work more rewarding or satisfying.
Job Enrichment (2) (Herzberg)
"Providing opportunities for achievement, recognition, growth, responsibility, and performance."
Job Family
A group of individual jobs with similar characteristics
Job Specification
"Statement of the needed knowledge, skills, and abilities (KSAs) of the person who is to perform the job"
Position Analysis Questionnaire (PAQ)
A copyrighted questionnaire that is used to determine the degree to which different tasks are involved in performing a particular job.
The different duties and responsibilities performed by only one employee
"The use of personal computers, networks, and other communications technology such as fax machines to do work in the home that is traditionally done in the workplace."
Virtual Team
A group with widely dispersed members linked together through computer and telecommunications technology.
The process of comparing the organizationÂ’s processes and practices with those of other companies
Cultural Audits
Audits of the culture and quality of work life in an organization.
Human Resources Planning (HRP)
"Process of anticipating and making provision for the movement (flow) of people into, within, and out of an organization."
Job Posting and Bidding
Posting vacancy notices and maintaining lists of employees looking for upgraded positions.
Labor Market
Area from which applicants are to be recruited.
Management Forecasts
"The opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organizationÂ’s future employment needs."
Markov Analysis
A method for tracking the pattern of employee movements through various jobs.
A preference for hiring relatives of current employees.
Organizational Capability
Capacity of the organization to act and change in pursuit of sustainable competitive advantage.
Realistic Job Previews (RJP)
"Informing applicants about all aspects of the job, including both its desirable and undesirable facets."
Replacement Charts
Listings of current jobholders and persons who are potential replacements if an opening occurs.
Skill Inventories
"Files of personnel education, experience, interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds."
Staffing Tables
"Graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements."
Succession Planning
"The process of identifying, developing, and tracking key individuals for executive positions."
Trend analysis
A quantitative approach to forecasting labor demand based on an organizational index such as sales.
Yield Ratio
Percentage of applicants from a recruitment source that make it to the next stage of the selection process.
Achievement tests
Measures of what a person knows or can do right now.
Aptitude tests
Measures of a personÂ’s capacity to learn or acquire skills.
Behavioral Description Interview (BDI)
An interview in which an applicant is asked questions about what he or she actually did in a given situation.
Compensatory Model
Permits a high score in one area to make up for a low score in another area.
Concurrent Validity
The extent to which test scores (or other predictor information) match criterion data obtained at about the same time from current employees.
Construct validity
The extent to which a selection tool measures a theoretical construct or trait.
Content validity
"The extent to which a selection instrument, such as a test, adequately samples the knowledge and skills needed to perform a particular job."
Criterion-related Validity
"The extent to which a selection tool predicts, or significantly correlates with, important elements of work behavior."
Verifying the results obtained from a validation study by administering a test or test battery to a different sample (drawn from the same population).
Multiple Cutoff Model
Requires an applicant to achieve a minimum level of proficiency on all selection dimensions.
Multiple Hurdle Model
Only applicants with sufficiently high scores at each selection stage go on to subsequent stages in the selection process.
Nondirective Interview
"The applicant determines the course of the discussion, while the interviewer refrains from influencing the applicantÂ’s remarks."
Panel Interview
An interview in which a board of interviewers questions and observes a single candidate.
Predictive Validity
The extent to which applicantsÂ’ test scores match criterion data obtained from those applicants/ employees after they have been on the job for some indefinite period.
"The degree to which interviews, tests, and other selection procedures yield comparable data over time and alternative measures."
The process of choosing individuals who have relevant qualifications to fill existing or projected job openings.
Selection Ratio
The number of applicants compared with the number of people to be hired.
Situational Interview
An interview in which an applicant is given a hypothetical incident and asked how he or she would respond to it.
Structured Interview
An interview in which a set of standardized questions having an established set of answers is used.
Degree to which a test or selection procedure measures a personÂ’s attributes.
Validity generalization
The extent to which validity coefficients can be generalized across situations.
Behavior Observation Scale (BOS)
A performance appraisal that measures the frequency of observed behavior.
Behaviorally Anchored Rating Scale (BARS)
"A performance appraisal that consists of a series of vertical scales, one for each dimension of job performance."
Contrast Error
A rating error in which an employeeÂ’s evaluation is biased either upward or downward because of comparison with another employee just previously evaluated.
Criterion contamination
Elements that affect the appraisal measures that are not part of the actual performance
Criterion deficiency:
Aspects of actual performance that are not measured
Critical Incident
An unusual event denoting superior or inferior employee performance in some part of the job.
Customer Appraisal
Appraisal that seeks evaluation from both external and internal customers.
Error of Central Tendency
A rating error in which all employees are rated about average.
Essay Method
Requires the rater to compose a statement describing employee behavior.
Forced-Choice Method
Requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance.
Graphic Rating-Scale Method
A trait approach to performance appraisal whereby each employee is rated according to a scale of individual characteristics.
Leniency or Strictness Error
A rating error in which the appraiser tends to give all employees either unusually high or unusually low ratings.
Management by Objectives (MBO)
A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.
Manager/Supervisor Appraisal
Appraisal done by an employeeÂ’s manager and reviewed by a manager one level higher.
Mixed-Standard Scale Method
"An approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard."
Peer Appraisal
"Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employeeÂ’s manager."
Recency Error
A rating error in which appraisal is based largely on an employeeÂ’s most recent behavior rather than on behavior throughout the appraisal period.
Measures that are consistent across raters and over time
"By the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview."
Similar-to-Me Error
An error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection.
Strategic relevance
Performance standards linked to organizational goals and competencies
Subordinate Appraisal
"Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes."
Team Appraisal
"Appraisal, based on TQM concepts, recognizing team accomplishment rather than individual performance."
Comparable Worth
"The concept that male and female jobs that are dissimilar, but equal in terms of value or worth to the employer, should be paid the same."
Competence-based Pay
"Pay based on an employee's skill level, the variety of skills possessed, or increased job knowledge of the employee."
Consumer Price Index (CPI)
"Measure of the average change in prices over time in a fixed ""market basket"" of goods and services."
Escalator Clauses
Clauses in labor agreements that provide for quarterly upward cost-of-living wage adjustments for inflation to protect employeesÂ’ purchasing power.
Exempt employees
"Employees who not covered in the overtime provisions of the Fair Labor Standards Act. Managers, supervisors, and white-collar professional employees are exempted on the basis of their exercise of independent judgment and other criteria."
Factor Comparison System
A job evaluation system that permits the evaluation process to be accomplished on a factor-by-factor basis by developing a factor comparison scale.
Hay Profile Method
"Job evaluation technique using three factors—knowledge, mental activity, and accountability—to evaluate executive and managerial positions."
Equal Pay for Comparable Worth
"The concept that male and female jobs that are dissimilar, but equal in terms of value or worth to the employer, should be paid the same."
Wage-Rate Compression
"Compression of pay differentials between job classes, particularly the pay differentials between hourly workers and their managers."
Low-wage Budgets
Current wage budgets reflect the general trend toward tight compensation cost controls.
Hourly Work
Work paid on an hourly basis.
Work paid according to the number of units produced.
Salary Workers
"Employees whose compensation is computed on the basis of weekly, biweekly, or monthly pay periods."
Job Classification system
A system of job evaluation in which jobs are classified and grouped according to a series of predetermined wage grades.
Job Evaluation
The systematic process of determining the relative worth of jobs in order to establish which jobs should be paid more than others within an organization.
Job Ranking System
Oldest system of job evaluation by which jobs are arrayed on the basis of their relative worth.
Nonexempt Employees
Employees covered by the overtime provisions of the Fair Labor Standards Act.
Pay Equity (also Distributive Fairness)
An employeeÂ’s perception that compensation received is equal to the value of the work performed.
Pay Equity (also Distributive Fairness) [2]
A motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve.
Pay-for-Performance Standard
The standard by which managers tie compensation to employee effort and performance.
Pay-for-Performance Standard [2]
"Refers to a wide range of compensation options, including merit-based pay, bonuses, salary commissions, job and pay banding, team/ group incentives, and various gainsharing programs."
Wage Curve
A curve in a scattergram representing the relationship between relative worth of jobs and wage rates.
Pay Grades
Groups of jobs within a particular class that are paid the same rate.
Rate Ranges
A range of rates for each pay grade that may be the same for each grade or proportionately greater for each successive grade.
Point System
A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it.
Point System [2]
Permits jobs to be evaluated quantitatively on the basis of factors or elements—compensable factors—that constitute the job.
Real wages
"Wages increases larger than rises in the consumer price index; that is, the real earning power of wages."
Red Circle Rates
Payment rates above the maximum of the pay range.
Value-added Compensation
Evaluating the individual components of the compensation program (pay and benefits) to see if they advance the needs of employees and the goals of the organization.
Wage and Salary survey
A survey of the wages paid to employees of other employers in the surveying organizationÂ’s relevant labor market. Helps maintain internal and external pay equity for employees.
"Incentive payment that is supplemental to the base wage for cost reduction, quality improvement, or other performance criteria."
Combined Salary and Commission Plan
A compensation plan that includes a straight salary and a commission component (“leverage”).
Differential Piece Rate
A compensation rate under which employees whose production exceeds the standard amount of output receive a higher rate for all of their work than the rate paid to those who do not exceed the standard amount.
Earnings-at-Risk Incentive Plans
"A portion of the employeeÂ’s base pay is placed at risk, but employees are given the opportunity to earn income above base pay when goals are met or exceeded."
Gainsharing Plans
Programs under which both employees and the organization share the financial gains according to a predetermined formula that reflects improved productivity and profitability.
Gainsharing program for bonuses are based upon the overall productivity of the work team.
Lump-sum Merit Program
"Program under which employees receive a year-end merit payment, which is not added to their base pay."
Merit Guidelines
Guidelines for awarding merit raises that are tied to performance objectives.
Special benefits given to executives; often referred to as perks.
Profit Sharing
"Any procedure by which an employer pays, or makes available to all regular employees, in addition to their base pay, current or deferred sums based upon the profits of the enterprise."
Rucker Plan
Bonus based on the relationship between the total earnings of hourly employees and the production value created by the employees.
Scanlon Plan
Employee and management committees cooperate in cost-reduction improvements.
Spot bonus
Unplanned bonus given for employee effort unrelated to an established performance measure.
Straight Piecework
An incentive plan under which employees receive a certain rate for each unit produced.
Standard hour plan
An incentive plan that sets pay rates based on the completion of a job in a predetermined “standard time.”
Straight Commission Plan
Compensation plan based upon a percentage of sales.
Straight Salary Plan
Compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume.
Team Incentive Plans
Compensation plans where all team members receive an incentive bonus payment when production or service standards are met or exceeded.
Variable Pay
"Tying pay to some measure of individual, group, or organizational performance."
Contributory plan
Contributions to a plan are made jointly by employees and employers.
Defined-benefit plan
The amount an employee is to receive upon retirement is specifically set forth.
Defined-contribution plan
The basis (amount) an employer contributes to the pension fund is specified.
Elder Care
Care provided to an elderly relative by an employee who remains actively at work.
Employee Assistance Programs (EAPs)
Services provided by employers to help workers cope with a wide variety of problems that interfere with the way they perform their jobs.
Flexible Benefits Plans (Cafeteria Plans)
Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs.
Health Maintenance Organizations (HMOs)
Organizations of physicians and health-care professionals that provide a wide range of services to subscribers and dependents on a prepaid basis.
Medical Savings Account (MSA)
A medical insurance plan financed by employer contributions to an employeeÂ’s individual medical savings account.
Noncontributory plan
Contributions to a plan are made solely by the employer.
Preferred Provider Organization (PPO)
Physicians who establish an organization that guarantees lower healthcare costs to the employer.
Silver Handshake
An early-retirement incentive in the form of increased pension benefits for several years or a cash bonus.
Supplemental Unemployment Benefits (SUBs)
"A plan that enables an employee who is laid off to draw, in addition to unemployment compensation, weekly benefits from the employer that are paid from a fund created for this purpose."
Supplemental Unemployment Benefits (SUBs) [2]
SUB benefits are considered deferred compensation and not current earnings. The fund is derived from employer contributions based on the total hours of work performed by employees.
"A guarantee of accrued benefits to participants at retirement age, regardless of their employment status at that time."
WorkersÂ’ Compensation Insurance
Federal- or state-mandated insurance (funded by an employer payroll tax) provided to workers to defray the loss of income and cost of treatment due to work-related injuries or illness.

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