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320 Cards in this Set

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Collaborative HR
The process of HR professionals from several different organizations working jointly to address shared business problems.
#1 - Changing Nature of HR Mgmt
Core competency
A unique capability that creates high value and differentiates an organization from its competition.
#1 - Changing Nature of HR Mgmt
HR Generalist
A person who has responsibility for performing a variety of HR activities.
#1 - Changing Nature of HR Mgmt
HR Specialist
A person who has in-depth knowledge and expertise in a limited area of HR.
#1 - Changing Nature of HR Mgmt
Human capital
The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.
#1 - Changing Nature of HR Mgmt
Human Resource (HR) management
The direction of organizational systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.
#1 - Changing Nature of HR Mgmt
Human resource management system (HRMS)
An integrated system providing information used by HR management in decision making.
#1 - Changing Nature of HR Mgmt
Organizational culture
The shared values and beliefs in an organization.
#1 - Changing Nature of HR Mgmt
Benchmarking
Comparing specific measures of performance against data on those measures in other organizations.
#2 - Strategic HR Mgmt
Culture
Societal forces affecting the values, beliefs, and actions of a distinct group of people.
#2 - Strategic HR Mgmt
Economic value added (EVA)
Net operating profit of a firm after the cost of capital is deducted.
#2 - Strategic HR Mgmt
Effectiveness
The extent to which goals have been met.
#2 - Strategic HR Mgmt
Efficiency
The degree to which operations are done in an economical manner.
#2 - Strategic HR Mgmt
Environmental scanning
Process of studying the environment of the organization to pinpoint opportunities and threats.
#2 - Strategic HR Mgmt
Forecasting
Using information from the past and the present to identify expected future conditions.
#2 - Strategic HR Mgmt
Global organization
Firm that has corporate units in a number of countries that are integrated to operate worldwide.
#2 - Strategic HR Mgmt
HR audit
Formal research effort that evaluates the current state of HR management in an organization.
#2 - Strategic HR Mgmt
HR metrics
Specific measures tied to HR performance indicators.
#2 - Strategic HR Mgmt
HR Strategies
Means used to anticipate and manage the supply of and demand for human resources.
#2 - Strategic HR Mgmt
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.
#2 - Strategic HR Mgmt
Importing and exporting
Buying and selling goods and services with organizations in other countries.
#2 - Strategic HR Mgmt
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.
#2 - Strategic HR Mgmt
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.
#2 - Strategic HR Mgmt
Masculinity/femininity
Dimension of culture that refers to the degree to which “masculine” values prevail over “feminine” values.
#2 - Strategic HR Mgmt
Multi-national enterprise (MNE)
Organization that has operating units located in foreign countries.
#2 - Strategic HR Mgmt
Organizational culture
The shared values and beliefs in an organization.
#2 - Strategic HR Mgmt
Power distance
Dimension of culture that refers to the inequality among the people of a nation.
#2 - Strategic HR Mgmt
Productivity
Measure of the quantity and quality of work done, considering the cost of the resources used.
#2 - Strategic HR Mgmt
Return on investment (ROI)
Calculation showing the value of expenditures for HR activities.
#2 - Strategic HR Mgmt
Strategic HR management
Use of employees to gain or keep a competitive advantage, resulting in greater organizational effectiveness.
#2 - Strategic HR Mgmt
Succession planning
Process of identifying a longer-term plan for the orderly replacement of key employees.
#2 - Strategic HR Mgmt
Uncertainty avoidance
Dimension of culture that refers to the preference of people in a country for structured rather than unstructured situations.
#2 - Strategic HR Mgmt
Unit labor cost
Computed by dividing the average cost of workers by their average levels of output.
#2 - Strategic HR Mgmt
Attitude survey
A survey that focuses on employees’ feelings and beliefs about their jobs and the organization.
#3 - Organizational/Individual Relations & Retention
Exit interview
An interview in which individuals are asked to give their reasons for leaving the organization.
#3 - Organizational/Individual Relations & Retention
Job satisfaction
A positive emotional state resulting from evaluating one’s job experiences.
#3 - Organizational/Individual Relations & Retention
Motivation
The desire within a person causing that person to act.
#3 - Organizational/Individual Relations & Retention
Organizational commitment
The degree to which employees believe in and accept organizational goals and desire to remain with the organization.
#3 - Organizational/Individual Relations & Retention
Organizational culture
The shared values and beliefs of a workforce.
#3 - Organizational/Individual Relations & Retention
Psychological contract
The unwritten expectations employees and employers have about the nature of their work relationships.
#3 - Organizational/Individual Relations & Retention
Turnover
The process in which employees leave an organization and have to be replaced.
#3 - Organizational/Individual Relations & Retention
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.
#4 - Legal Framework of Equal Employment
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.
#4 - Legal Framework of Equal Employment
Blind to differences
Differences among people should be ignored and everyone should be treated equally.
#4 - Legal Framework of Equal Employment
Bona fide occupational qualification (BFOQ)
Characteristic providing a legitimate reason why an employer can exclude persons on otherwise illegal bases of consideration.
#4 - Legal Framework of Equal Employment
Burden of proof
What individuals who file suit against employers must prove in order to establish that illegal discrimination has occurred.
#4 - Legal Framework of Equal Employment
Business necessity
Practice necessary for safe and efficient organizational operations.
#4 - Legal Framework of Equal Employment
Concurrent validity
Measured when an employer tests current employees and correlates the scores with their performance ratings.
#4 - Legal Framework of Equal Employment
Content validity
Validity measured by a logical, non-statistical method to identify the KSAs and other characteristics necessary to perform a job.
#4 - Legal Framework of Equal Employment
Correlation coefficient
Index number giving the relationship between a predictor and a criterion variable.
#4 - Legal Framework of Equal Employment
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.
#4 - Legal Framework of Equal Employment
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.
#4 - Legal Framework of Equal Employment
Disparate impact
Occurs when members of a protected class are substantially under-represented as a result of employment decisions that work to their disadvantage.
#4 - Legal Framework of Equal Employment
Disparate treatment
Occurs when members of a protected class are treated differently from others.
#4 - Legal Framework of Equal Employment
Employment “test”
Any employment procedure used as the basis for making an employment-related decision.
#4 - Legal Framework of Equal Employment
Equal employment
Employment that is not affected by illegal discrimination.
#4 - Legal Framework of Equal Employment
Essential job functions
Fundamental duties of a job.
#4 - Legal Framework of Equal Employment
Mediation
Dispute resolution process by which a third party helps negotiators reach a settlement.
#4 - Legal Framework of Equal Employment
Pay equity
Idea that pay for jobs requiring comparable levels of knowledge, skill, and ability should be similar, even if actual duties differ significantly.
#4 - Legal Framework of Equal Employment
Predictive validity
Measured when test results of applicants are compared with subsequent job performance.
#4 - Legal Framework of Equal Employment
Protected class
Individuals within a group identified for protection under equal employment laws and regulations.
#4 - Legal Framework of Equal Employment
Reasonable accommodation
A modification or adjustment to a job or work environment for a qualified individual with a disability.
#4 - Legal Framework of Equal Employment
Reliability
Consistency with which a test measures an item.
#4 - Legal Framework of Equal Employment
Retaliation
Punitive actions taken by employers against individuals who exercise their legal rights.
#4 - Legal Framework of Equal Employment
Sexual harassment
Actions that are sexually directed, are unwanted, and subject the worker to adverse employment conditions or create a hostile work environment.
#4 - Legal Framework of Equal Employment
Undue hardship
Significant difficulty or expense imposed on an employer in making an accommodation for individuals with disabilities.
#4 - Legal Framework of Equal Employment
Validity
Extent to which a test actually measures what it says it measures.
#4 - Legal Framework of Equal Employment
Affirmative action plan (AAP)
Formal document that an employer compiles annually for submission to enforcement agencies.
#5 - Managing Equal Employment & Diversity
Availability analysis
Identifies the number of protected-class members available to work in the appropriate labor markets for given jobs.
#5 - Managing Equal Employment & Diversity
Glass ceiling
Discriminatory practices that have prevented women and other protected-class members from advancing to executive-level jobs.
#5 - Managing Equal Employment & Diversity
Hostile environment
Sexual harassment in which an individual’s work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions.
#5 - Managing Equal Employment & Diversity
Nepotism
Practice of allowing relatives to work for the same employer.
#5 - Managing Equal Employment & Diversity
Phased retirement
Approach in which employees gradually reduce their workloads and pay.
#5 - Managing Equal Employment & Diversity
Quid pro quo
Sexual harassment in which employment outcomes are linked to the individual granting sexual favors.
#5 - Managing Equal Employment & Diversity
Reverse discrimination
When a person is denied an opportunity because of preferences given to protected-class individuals who may be less qualified.
#5 - Managing Equal Employment & Diversity
Utilization analysis
Identifies the number of protected-class members employed in the organization and the types of jobs they hold.
#5 - Managing Equal Employment & Diversity
Autonomy
Extent of individual freedom and discretion in the work and its scheduling.
#6 - Jobs & Job Analysis
Business process re-engineering (BPR)
Measures for improving such activities as product development, customer service, and service delivery.
#6 - Jobs & Job Analysis
Competencies
Individual capabilities that can be linked to enhanced performance by individuals or teams.
#6 - Jobs & Job Analysis
Compressed workweek
Schedule in which a full week’s work is accomplished in fewer than 5 8-hour days.
#6 - Jobs & Job Analysis
Duty
Larger work segment composed of several tasks that are performed by an individual.
#6 - Jobs & Job Analysis
Feedback
Amount of information employees receive about how well or how poorly they have performed.
#6 - Jobs & Job Analysis
Flextime
Scheduling arrangement in which employees work a set number of hours a day but vary starting and ending times.
#6 - Jobs & Job Analysis
Job
Grouping of tasks, duties, and responsibilities that constitutes the total work assignment for employees.
#6 - Jobs & Job Analysis
Job analysis
Systematic way of gathering and analyzing information about the content, context, and human requirements of jobs.
#6 - Jobs & Job Analysis
Job description
Identification of the tasks, duties, and responsibilities of a job.
#6 - Jobs & Job Analysis
Job design
Organizing tasks, duties, and responsibilities into a productive unit of work.
#6 - Jobs & Job Analysis
Job enlargement
Broadening the scope of a job by expanding the number of different tasks to be performed.
#6 - Jobs & Job Analysis
Job enrichment
Increasing the depth of a job by adding responsibility for planning, organizing, controlling, or evaluating the job.
#6 - Jobs & Job Analysis
Job rotation
Process of shifting a person from job to job.
#6 - Jobs & Job Analysis
Job sharing
Scheduling arrangement in which two employees perform the work of one full-time job.
#6 - Jobs & Job Analysis
Job specifications
The knowledge, skills, and abilities (KSAs) an individual needs to perform a job satisfactorily.
#6 - Jobs & Job Analysis
Marginal job functions
Duties that are part of a job but are incidental or ancillary to the purpose and nature of the job.
#6 - Jobs & Job Analysis
Performance standards
Indicators of what the job accomplishes and how performance is measured in key areas of the job description.
#6 - Jobs & Job Analysis
Person/job fit
Matching characteristics of people with characteristics of jobs.
#6 - Jobs & Job Analysis
Responsibilities
Obligations to perform certain tasks and duties.
#6 - Jobs & Job Analysis
Self-directed team
Organizational team composed of individuals who are assigned a cluster of tasks, duties and responsibilities to be accomplished.
#6 - Jobs & Job Analysis
Skill variety
Extent to which the work requires several different activities for successful completion.
#6 - Jobs & Job Analysis
Special-purpose team
Organizational team formed to address specific problems, improve work processes, and enhance product and service quality.
#6 - Jobs & Job Analysis
Task
Distinct, identifiable work activity composed of motions.
#6 - Jobs & Job Analysis
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.
#6 - Jobs & Job Analysis
Task significance
Impact the job has on other people.
#6 - Jobs & Job Analysis
Virtual team
Organizational team composed of individuals who are geographically separated but linked by communications technology.
#6 - Jobs & Job Analysis
Work
Effort directed toward accomplishing results.
#6 - Jobs & Job Analysis
Workflow analysis
Study of the way work (inputs, activities, and outputs) moves through an organization.
#6 - Jobs & Job Analysis
Acceptance rate
Percent of applicants hired divided by total number of applicants.
#7 - Recruiting in Labor Markets
Applicant pool
All persons who are actually evaluated for selection.
#7 - Recruiting in Labor Markets
Applicant population
A subset of the labor force population that is available for selection using a particular recruiting approach.
#7 - Recruiting in Labor Markets
Flexible staffing
Use of workers who are not traditional employees.
#7 - Recruiting in Labor Markets
Independent contractors
Workers who perform specific services on a contract basis.
#7 - Recruiting in Labor Markets
Job posting
System in which the employer provides notices of job openings and employees respond by applying.
#7 - Recruiting in Labor Markets
Labor force population
All individuals who are available for selection if all possible recruitment strategies are used.
#7 - Recruiting in Labor Markets
Labor markets
External supply pool from which organizations attract employees.
#7 - Recruiting in Labor Markets
Recruiting
Process of generating a pool of qualified applicants for organizational jobs.
#7 - Recruiting in Labor Markets
Selection rate
Percentage hired from a given group of candidates.
#7 - Recruiting in Labor Markets
Yield ratios
Comparisons of the number of applicants at one stage of the recruiting process with the number at the next stage.
#7 - Recruiting in Labor Markets
Behavioral interview
Interview in which applicants give specific examples of how they have performed a certain task or handled a problem in the past.
#8 - Selecting & Placing Human Resources
Cognitive ability tests
Tests that measure an individual’s thinking, memory, reasoning, verbal, and mathematical abilities.
#8 - Selecting & Placing Human Resources
Expatriate
Citizen of one country who is working in a second country and employed by an organization headquartered in the first country.
#8 - Selecting & Placing Human Resources
Host-country national
Citizen of one country who is working in that country and employed by an organization headquartered in a second country.
#8 - Selecting & Placing Human Resources
Negligent hiring
Occurs when an employer fails to check an employee’s background and the employee injures someone.
#8 - Selecting & Placing Human Resources
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.
#8 - Selecting & Placing Human Resources
Non-directive interview
Interview that uses questions developed from the answers to previous questions.
#8 - Selecting & Placing Human Resources
Panel interview
Interview in which several interviewers meet with the candidate at the same time.
#8 - Selecting & Placing Human Resources
Person-organization fit
The congruence between individuals and organizational factors.
#8 - Selecting & Placing Human Resources
Person/job fit
Matching the KSAs of people with the characteristics of jobs.
#8 - Selecting & Placing Human Resources
Physical ability tests
Tests that measure an individual’s abilities such as strength, endurance, and muscular movement.
#8 - Selecting & Placing Human Resources
Placement
Fitting a person to the right job.
#8 - Selecting & Placing Human Resources
Predictors
Measurable or visible indicators of a selection criterion.
#8 - Selecting & Placing Human Resources
Psychomotor tests
Tests that measure dexterity, hand-eye coordination, arm-hand steadiness, and other factors.
#8 - Selecting & Placing Human Resources
Realistic job preview (RJP)
Process through which a job applicant receives an accurate picture of a job.
#8 - Selecting & Placing Human Resources
Selection
Process of choosing individuals with qualifications needed to fill jobs in an organization.
#8 - Selecting & Placing Human Resources
Selection criterion
Characteristic that a person must have to do a job successfully.
#8 - Selecting & Placing Human Resources
Situational interview
Structured interview composed of questions about how applicants might handle specific job situations.
#8 - Selecting & Placing Human Resources
Situational judgment tests
Tests that measure a person’s judgment in work settings.
#8 - Selecting & Placing Human Resources
Stress interview
Interview designed to create anxiety and put pressure on applicants to see how they respond.
#8 - Selecting & Placing Human Resources
Structured interview
Interview that uses a set of standardized questions asked of all job applicants.
#8 - Selecting & Placing Human Resources
Team interview
Interview in which applicants are interviewed by the team members with whom they will work.
#8 - Selecting & Placing Human Resources
Third-country national
Citizen of one country who is working in a second country and employed by an organization headquartered in a third country.
#8 - Selecting & Placing Human Resources
Work sample tests
Tests that require an applicant to perform a simulated job task.
#8 - Selecting & Placing Human Resources
Active practice
Performance of job-related tasks and duties by trainees during training.
#9 - Training Human Resources
Behavior modeling
Copying someone else’s behavior.
#9 - Training Human Resources
Cost-benefit analysis
Comparison of costs and benefits associated with training.
#9 - Training Human Resources
Cross training
Training people to do more than one job.
#9 - Training Human Resources
E-learning
Use of the Internet or an organizational intranet to conduct training on-line.
#9 - Training Human Resources
Immediate confirmation
Based on the idea that people learn best if reinforcement and feedback are given after training.
#9 - Training Human Resources
Informal training
Training that occurs through interactions and feedback among employees.
#9 - Training Human Resources
Knowledge management
The way an organization identifies and leverages knowledge in order to be competitive.
#9 - Training Human Resources
Massed practice
Practice performed all at once.
#9 - Training Human Resources
Orientation
Planned introduction of new employees to their jobs, co-workers, and the organization.
#9 - Training Human Resources
Performance consulting
Process in which a trainer and the organizational client work together to determine what needs to be done to improve results.
#9 - Training Human Resources
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.
#9 - Training Human Resources
Self-efficacy
Person’s belief that he or she can successfully learn the training program content.
#9 - Training Human Resources
Spaced practice
Practice performed in several sessions spaced over a period of hours or days.
#9 - Training Human Resources
Training
Process whereby people acquire capabilities to perform jobs.
#9 - Training Human Resources
Assessment centers
Collections of instruments and exercises designed to diagnose individuals’ development needs.
#10 - Career Management & HR Development
Career
Series of work-related positions a person occupies throughout life.
#10 - Career Management & HR Development
Career paths
Represent employees’ movements through opportunities over time.
#10 - Career Management & HR Development
Coaching
Training and feedback given to employees by immediate supervisors.
#10 - Career Management & HR Development
Development
Efforts to improve employees’ abilities to handle a variety of assignments and to cultivate employees’ capabilities beyond those required by the current job.
#10 - Career Management & HR Development
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.
#10 - Career Management & HR Development
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.
#10 - Career Management & HR Development
Individual-centered career planning
Career planning focusing on an individual’s career rather than on organizational needs.
#10 - Career Management & HR Development
Job rotation
Process of shifting a person from job to job.
#10 - Career Management & HR Development
Management mentoring
Relationship in which experienced managers aid individuals in the earlier stages of their careers.
#10 - Career Management & HR Development
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.
#10 - Career Management & HR Development
Repatriation
Planning, training, and reassignment of global employees to their home countries.
#10 - Career Management & HR Development
Sabbatical
Paid time off the job to develop and rejuvenate oneself.
#10 - Career Management & HR Development
Simulation
Technique that requires participants to analyze a situation and decide the best course of action according to data given.
#10 - Career Management & HR Development
Succession planning
Process of identifying a longer-term plan for the orderly replacement of key employees.
#10 - Career Management & HR Development
Central tendency error
Occurs when a rater gives all employees a score within a narrow range in the middle of the scale.
#11 - Performance Mgmt & Appraisal
Contrast error
Tendency to rate people relative to others rather than against performance standards.
#11 - Performance Mgmt & Appraisal
Forced distribution
Performance appraisal method in which ratings of employees’ performance are distributed along a bell-shaped curve.
#11 - Performance Mgmt & Appraisal
Graphic rating scale
Scale that allows the rater to mark an employee’s performance on a continuum.
#11 - Performance Mgmt & Appraisal
Halo effect
Occurs when a rater scores an employee high on all job criteria because of performance in one area.
#11 - Performance Mgmt & Appraisal
Job criteria
Important elements in a given job.
#11 - Performance Mgmt & Appraisal
Leniency error
Occurs when ratings of all employees fall at the high end of the scale.
#11 - Performance Mgmt & Appraisal
Management by objectives (MBO)
Performance appraisal method that specifies the performance goals that an individual and manager mutually identify.
#11 - Performance Mgmt & Appraisal
Performance appraisal
Process of evaluating how well employees perform their jobs and then communicating that information to the employees.
#11 - Performance Mgmt & Appraisal
Performance management
Composed of the processes used to identify, measure, communicate, develop, and reward employee performance.
#11 - Performance Mgmt & Appraisal
Primacy effect
Occurs when a rater gives greater weight to information received first when appraising an individual’s performance.
#11 - Performance Mgmt & Appraisal
Ranking
Performance appraisal method in which all employees are listed from highest to lowest in performance.
#11 - Performance Mgmt & Appraisal
Rater bias
Occurs when a rater’s values or prejudices distort the rating.
#11 - Performance Mgmt & Appraisal
Recency effect
Occurs when a rater gives greater weight to recent events when appraising an individual’s performance.
#11 - Performance Mgmt & Appraisal
Strictness error
Occurs when ratings of all employees fall at the low end of the scale.
#11 - Performance Mgmt & Appraisal
Balance-sheet approach
Compensation plan that equalizes cost differences between identical international and home-country assignments.
#12 - Compensation Strategies & Practices
Base pay
Basic compensation that an employee receives, usually as a wage or a salary.
#12 - Compensation Strategies & Practices
Benchmark jobs
Jobs found in many organizations.
#12 - Compensation Strategies & Practices
Benefit
Indirect reward given to an employee or a group of employees for organizational membership.
#12 - Compensation Strategies & Practices
Broadbanding
Practice of using fewer pay grades with much broader ranges than in traditional compensation systems.
#12 - Compensation Strategies & Practices
Compa-ratio
Pay level divided by the midpoint of the pay range.
#12 - Compensation Strategies & Practices
Compensable factor
Factor that identifies a job value commonly present throughout a group of jobs.
#12 - Compensation Strategies & Practices
Compensatory time off
Hours given to an employee in lieu of payment for extra time worked.
#12 - Compensation Strategies & Practices
Competency-based pay
Rewards individuals for the capabilities they demonstrate and acquire.
#12 - Compensation Strategies & Practices
Distributive justice
Perceived fairness in the distribution of outcomes.
#12 - Compensation Strategies & Practices
Entitlement philosophy
Assumes that individuals who have worked another year are entitled to pay increases, with little regard for performance differences.
#12 - Compensation Strategies & Practices
Equity
Perceived fairness between what a person does and what the person receives.
#12 - Compensation Strategies & Practices
Exempt employees
Employees to whom employers are not required to pay overtime under the Fair Labor Standards Act.
#12 - Compensation Strategies & Practices
Garnishment
A court action in which a portion of an employee’s wages is set aside to pay a debt owed a creditor.
#12 - Compensation Strategies & Practices
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.
#12 - Compensation Strategies & Practices
Green-circled employee
Incumbent who is paid below the range set for the job.
#12 - Compensation Strategies & Practices
Job evaluation
Formal, systematic means to identify the relative worth of jobs within an organization.
#12 - Compensation Strategies & Practices
Job family
Group of jobs having common organizational characteristics.
#12 - Compensation Strategies & Practices
Living wage
One that is supposed to meet the basic needs of a worker’s family.
#12 - Compensation Strategies & Practices
Lump-sum increase (LSI)
One-time payment of all or part of a yearly pay increase.
#12 - Compensation Strategies & Practices
Market banding
Grouping jobs into pay grades based on similar market survey amounts.
#12 - Compensation Strategies & Practices
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.
#12 - Compensation Strategies & Practices
Market pricing
Use of pay survey data to identify the relative value of jobs based on what other employers pay for similar jobs.
#12 - Compensation Strategies & Practices
Non-exempt employees
Employees who must be paid overtime under the Fair Labor Standards Act.
#12 - Compensation Strategies & Practices
Pay compression
Occurs when the pay differences among individuals with different levels of experience and performance become small.
#12 - Compensation Strategies & Practices
Pay equity
Similarity in pay for all jobs requiring comparable knowledge, skills, and abilities, even if actual duties and market rates differ significantly.
#12 - Compensation Strategies & Practices
Pay grades
Groupings of individual jobs having approximately the same job worth.
#12 - Compensation Strategies & Practices
Pay survey
Collection of data on compensation rates for workers performing similar jobs in other organizations.
#12 - Compensation Strategies & Practices
Pay-for-performance philosophy
Requires that compensation changes reflect individual performance differences.
#12 - Compensation Strategies & Practices
Procedural justice
Perceived fairness of the process and procedures used to make decisions about employees.
#12 - Compensation Strategies & Practices
Red-circled employee
Incumbent who is paid above the range set for the job.
#12 - Compensation Strategies & Practices
Salaries
Consistent payments made each period regardless of the number of hours worked.
#12 - Compensation Strategies & Practices
Seniority
Time spent in the organization or on a particular job.
#12 - Compensation Strategies & Practices
Tax equalization plan
Compensation plan used to protect expatriates from negative tax consequences.
#12 - Compensation Strategies & Practices
Variable pay
Compensation linked directly to individual, team, or organizational performance.
#12 - Compensation Strategies & Practices
Wages
Payments directly calculated on the amount of time worked.
#12 - Compensation Strategies & Practices
Bonus
One-time payment that does not become part of the employee’s base pay.
#13 - Variable Pay & Executive Compensation
Commission
Compensation computed as a percentage of sales in units or dollars.
#13 - Variable Pay & Executive Compensation
Compensation committee
Subgroup of the board of directors, composed of directors who are not officers of the firm.
#13 - Variable Pay & Executive Compensation
Draw
Amount advanced from and repaid to future commissions earned by the employee.
#13 - Variable Pay & Executive Compensation
Employee stock ownership plan (ESOP)
Plan whereby employees have significant stock ownership in their employers.
#13 - Variable Pay & Executive Compensation
Gainsharing
System of sharing with employees greater-than-expected gains in profits and/or productivity.
#13 - Variable Pay & Executive Compensation
Perquisites (perks)
Special benefits—usually non-cash items—for executives.
#13 - Variable Pay & Executive Compensation
Profit sharing
System to distribute a portion of the profits of the organization to employees.
#13 - Variable Pay & Executive Compensation
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.
#13 - Variable Pay & Executive Compensation
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.
#13 - Variable Pay & Executive Compensation
Variable pay
Compensation linked to individual, group/team, and/or organizational performance.
#13 - Variable Pay & Executive Compensation
401(k) plan
Agreement in which a percentage of an employee’s pay is withheld and invested in a tax-deferred account.
#14 - Managing Employee Benefits
Adverse selection
Situation in which only higher-risk employees select and use certain benefits.
#14 - Managing Employee Benefits
Benefit
Indirect reward given to an employee or a group of employees for organizational membership.
#14 - Managing Employee 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.
#14 - Managing Employee Benefits
Co-payment
Strategy requiring employees to pay a portion of the cost of insurance premiums, medical care, and prescription drugs.
#14 - Managing Employee Benefits
Consumer-driven health (CDH) plan
One that provides employer financial contributions to employees to cover their own health-related expenses.
#14 - Managing Employee Benefits
Contributory plan
Pension plan in which the money for pension benefits is paid in by both employees and employers.
#14 - Managing Employee Benefits
Defined-benefit plan
Retirement program in which an employee is promised a pension amount based on age and service.
#14 - Managing Employee Benefits
Defined-contribution plan
Retirement program in which the employer makes an annual payment to an employee’s pension account.
#14 - Managing Employee Benefits
Flexible benefits plan
Program that allows employees to select the benefits they prefer from groups of benefits established by the employer.
#14 - Managing Employee Benefits
Flexible spending accounts
Benefits plans that allow employees to contribute pre-tax dollars to buy certain additional benefits.
#14 - Managing Employee Benefits
Health maintenance organization (HMO)
Plan that provides services for a fixed period on a pre-paid basis.
#14 - Managing Employee Benefits
Managed care
Approaches that monitor and reduce medical costs through restrictions and market system alternatives.
#14 - Managing Employee Benefits
Non-contributory plan
Pension plan in which all the funds for pension benefits are provided by the employer.
#14 - Managing Employee Benefits
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.
#14 - Managing Employee Benefits
Pension plan
Retirement program established and funded by the employer and employees.
#14 - Managing Employee Benefits
Portability
A pension plan feature that allows employees to move their pension benefits from one employer to another.
#14 - Managing Employee Benefits
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.
#14 - Managing Employee Benefits
Serious health condition
One requiring in-patient, hospital, hospice, or residential medical care or continuing physician care.
#14 - Managing Employee Benefits
Severance pay
Security benefit voluntarily offered by employers to employees who lose their jobs.
#14 - Managing Employee Benefits
Stock purchase plan
Plan in which the corporation provides matching funds equal to the amount invested by the employee for the purchase of stock in the company.
#14 - Managing Employee Benefits
Utilization review
Audit of the services and costs billed by health-care providers.
#14 - Managing Employee Benefits
Vesting
Right of employees to receive certain benefits from their pension plans.
#14 - Managing Employee Benefits
Well-pay
Extra pay for not taking sick leave.
#14 - Managing Employee Benefits
Workers’ compensation
Security benefits provided to persons injured on the job.
#14 - Managing Employee Benefits
Cumulative trauma disorders (CTDs)
Muscle and skeletal injuries that occur when workers repetitively use the same muscles to perform tasks.
#15 - Health, Safety & Security
Employee assistance program (EAP)
Program that provides counseling and other help to employees having emotional, physical, or other personal problems.
#15 - Health, Safety & Security
Ergonomics
Study and design of the work environment to address physiological and physical demands on individuals.
#15 - Health, Safety & Security
Health
General state of physical, mental, and emotional well-being.
#15 - Health, Safety & Security
Health promotion
Supportive approach of facilitating and encouraging healthy actions and lifestyles among employees.
#15 - Health, Safety & Security
Lock out / tag out regulations
Requirements that locks and tags be used to make equipment inoperative for repair or adjustment.
#15 - Health, Safety & Security
Safety
Condition in which the physical well-being of people is protected.
#15 - Health, Safety & Security
Security
Protection of employees and organizational facilities.
#15 - Health, Safety & Security
Security audit
Comprehensive review of organizational security.
#15 - Health, Safety & Security
Substance abuse
Use of illicit substances or misuse of controlled substances, alcohol, or other drugs.
#15 - Health, Safety & Security
Wellness programs
Programs designed to maintain or improve employee health before problems arise.
#15 - Health, Safety & Security
Arbitration
Process that uses a neutral third party to make a decision.
#16 - Employee Rights & Discipline
Constructive discharge
Deliberately making conditions intolerable to get an employee to quit.
#16 - Employee Rights & Discipline
Contractual rights
Rights based on a specific contract between an employer and an employee.
#16 - Employee Rights & Discipline
Discipline
Form of training that enforces organizational rules.
#16 - Employee Rights & Discipline
Distributive justice
Perceived fairness in the distribution of outcomes.
#16 - Employee Rights & Discipline
Due process
Requirement that the employer use fair means to determine employee wrongdoing and/or disciplinary measures, and that the employee have an opportunity to explain and defend his or her actions.
#16 - Employee Rights & Discipline
Employment contract
Agreement that formally outlines the details of employment.
#16 - Employee Rights & Discipline
Employment-at-will (EAW)
Common-law doctrine stating that employers have the right to hire, fire, demote, or promote whomever they choose, unless there is a law or a contract to the contrary.
#16 - Employee Rights & Discipline
Just cause
Reasonable justification for taking employment-related action.
#16 - Employee Rights & Discipline
Non-compete agreements
Agreements that prohibit individuals who leave the organization from competing with an employer in the same line of business for a specified period of time.
#16 - Employee Rights & Discipline
Policies
General guidelines that focus organizational actions.
#16 - Employee Rights & Discipline
Procedural justice
Perceived fairness of the processes used to make decisions about employees.
#16 - Employee Rights & Discipline
Procedures
Customary methods of handling activities.
#16 - Employee Rights & Discipline
Responsibilities
Obligations to perform certain tasks and duties.
#16 - Employee Rights & Discipline
Right to privacy
An individual’s freedom from unauthorized and unreasonable intrusion into their personal affairs.
#16 - Employee Rights & Discipline
Rights
Powers, privileges, or interests that belong to a person by law, nature, or tradition.
#16 - Employee Rights & Discipline
Rules
Specific guidelines that regulate and restrict the behavior of individuals.
#16 - Employee Rights & Discipline
Separation agreement
Agreement in which a terminated employee agrees not to sue the employer, in exchange for specified benefits.
#16 - Employee Rights & Discipline
Statutory rights
Rights based on laws or statutes.
#16 - Employee Rights & Discipline
Whistle-blowers
Individuals who report real or perceived wrongs committed by their employers.
#16 - Employee Rights & Discipline
Wrongful discharge
Termination of an individual’s employment for reasons that are improper or illegal.
#16 - Employee Rights & Discipline
Arbitration
Process that uses a neutral third party to make a decision.
#17 - Union-Management Relations
Bargaining unit
Employees eligible to select a single union to represent and bargain collectively for them.
#17 - Union-Management Relations
Business agent
Full-time union official who operates the union office and assists union members.
#17 - Union-Management Relations
Closed shop
Firm that requires individuals to join a union before they can be hired.
#17 - Union-Management Relations
Co-determination
Practice whereby union or worker representatives are given positions on a company’s board of directors.
#17 - Union-Management Relations
Collective bargaining
Process whereby representatives of management and workers negotiate over wages, hours, and other terms and conditions of employment.
#17 - Union-Management Relations
Complaint
Indication of employee dissatisfaction.
#17 - Union-Management Relations
Conciliation
Process by which a third party attempts to keep union and management negotiators talking so that they can reach a voluntary settlement.
#17 - Union-Management Relations
Craft union
One whose members do one type of work, often using specialized skills and training.
#17 - Union-Management Relations
Decertification
Process whereby a union is removed as the representative of a group of employees.
#17 - Union-Management Relations
Federation
Group of autonomous national and international unions.
#17 - Union-Management Relations
Grievance
Complaint formally stated in writing.
#17 - Union-Management Relations
Grievance arbitration
Means by which a third party settles disputes arising from different interpretations of a labor contract.
#17 - Union-Management Relations
Grievance procedures
Formal channels of communication used to resolve grievances.
#17 - Union-Management Relations
Illegal issues
Collective bargaining issues that would require either party to take illegal action.
#17 - Union-Management Relations
Industrial union
One that includes many persons working in the same industry or company, regardless of jobs held.
#17 - Union-Management Relations
Lockout
Shutdown of company operations undertaken by management to prevent union members from working.
#17 - Union-Management Relations
Management rights
Rights reserved so that the employer can manage, direct, and control its business.
#17 - Union-Management Relations
Mandatory issues
Collective bargaining issues identified specifically by labor laws or court decisions as subject to bargaining.
#17 - Union-Management Relations
Mediation
Process by which a third party helps the negotiators reach a settlement.
#17 - Union-Management Relations
National emergency strike
Strike that would impact the national economy significantly.
#17 - Union-Management Relations
Open shop
Workers are not required to join or pay dues to a union.
#17 - Union-Management Relations
Permissive issues
Collective bargaining issues that are not mandatory and relate to certain jobs.
#17 - Union-Management Relations
Ratification
Process by which union members vote to accept the terms of a negotiated labor agreement.
#17 - Union-Management Relations
Right-to-work laws
State laws that prohibit requiring employees to join unions as a condition of obtaining or continuing employment.
#17 - Union-Management Relations
Salting
Practice in which unions hire and pay people to apply for jobs at certain companies.
#17 - Union-Management Relations
Strike
Work stoppage in which union members refuse to work in order to put pressure on an employer.
#17 - Union-Management Relations
Union
Formal association of workers that promotes the interests of its members through collective action.
#17 - Union-Management Relations
Union authorization card
Card signed by an employee to designate a union as her or his collective bargaining agent.
#17 - Union-Management Relations
Union security provisions
Contract clauses to help the union obtain and retain members.
#17 - Union-Management Relations
Union steward
Employee elected to serve as the first-line representative of unionized workers.
#17 - Union-Management Relations