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260 Cards in this Set
- Front
- Back
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RELIABILITY
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Measure or predictor with a high degree of consistency; the ability of an instrument to measure consistently; the ability to repeat an experiment & obtain similar results.
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VALIDITY
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Degree to which inferences made from interview or test are correct & accurate; the ability of an instrument to measure what it is intended to measure.
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CONTENT VALIDITY
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Degree to which an interview, test, or other selection device measures the knowledge, skills, abilities, or other
qualifications that are part of the job; An instrument |
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CONSTRUCT VALIDITY
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Extent to which a selection device measures the theoretical construct or trait.
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CRITERION-RELATED
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Link between a selection device & job performance; “A concern for tests that are designed to predict someone’s status on an external criterion measure, i.e., a person’s behavior in a specified situation
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CONCURRENT:
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Type of criterion-related validity determined by relating the test scores of a group of test takers who take a test (Test A) to some other criterion measure (Test B) that is administered at the same time
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PREDICTIVE:
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Type of criterion-related validity; degree to which predictions made by a test are confirmed by the later behavior of test takers; “The predictor scores are collected first & criterion data are collected at some later/future point; this is appropriate for tests designed to assess a person’s future status on a criterion
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Title VII of the Civil Rights Act (1964)
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A federal statute enacted to further guarantee the constitutional rights of individuals and prevent employment discrimination based on race, color, sex, religion, national origin or age.
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Executive Order 11246 (Affirmative Action) (1965)
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Administered and enforced by the Office of Federal Contract Compliance Programs (OFCCP), Executive Order 11246 prohibits federal contractors and federally-assisted construction contractors and subcontractors, who do over $10,000 in government business in one year, from discriminating in employment decisions on the basis of race, color, religion, sex or national origin. The Executive Order also requires government contractors to take affirmative action to ensure that equal opportunity is provided in all aspects of their employment.
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Age Discrimination in Employment Act (ADEA) (1967)
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The ADEA protects workers age 40 and over by prohibiting discrimination against workers 40 and over in any employment or employment-related decision. The Act applies to most employers with 20 or more employees. One of the main provisions of the Act is that employers, with very few exceptions, can no longer force an employee to retire.
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Consumer Protection Credit Act (1968)
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Prohibits employees from being terminated for garnishments for any one indebtedness. Although two or more do allow an employer to terminate, care should be exercised to prevent disparate impact if the employees being terminated are mostly women and minorities.
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Rehabilitation Act (1973)
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A federal statute requiring federal agencies to ensure that electronic and information technology systems are accessible to individuals with disabilities when their jobs require the use of electronic or information technology systems.
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Privacy Act (1974)
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Refers to information about an employee which he or she regards as personal or private (i.e., medical information, financial data, etc.) and the right of that individual to not have such information shared with others.
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Fair Credit Reporting Act (1970)
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The FCRA requires employers that use credit reports and that deny employment on the basis of a credit report to so notify the applicant and to provide the name and address of the consumer reporting agency used.
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Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) (1974)
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Federal law requiring federal contractors or subcontractors with contracts of $10,000 or more to take affirmative action to employ and advance in employment disabled veterans or those who served during the Vietnam era.
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Pregnancy Discrimination Act (1978)
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An amendment to Title VII of the Civil Rights Act of 1964 prohibiting discrimination on the basis of pregnancy, childbirth or related medical conditions, requiring pregnancy or related conditions to be treated in the same manner as any other temporary disability.
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Uniform Guidelines for Employee Selection Procedures (1978)
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The Uniform Guidelines on Employee Selection Procedures address the use of interviewing, testing, training and other employee selection tools and their impact on discrimination based on race, color, religion, sex or national origin. Specifically addressed is adverse impact, measured by the 80% test, which states that if a selection practice yields less than 80% of a protected group, as compared with the most frequently selected group, there may be evidence of discrimination. The guidelines also require employers to maintain records, for an unspecified period of time, on their selection procedures and any adverse impact noted, as well as records of the employer's workforce broken down by race and ethnic groups.
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Immigration Reform and Control Act (1986)
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The Immigration Reform and Control Act (IRCA) prohibits the employment of individuals who are not legally authorized to work in the United States or in an employment classification that they are not authorized to fill. The IRCA requires employers to certify (using the I-9 form) within three days of employment the identity and eligibility to work of all employees hired. IRCA also prohibits discrimination in employment-related matters on the basis of national origin or citizenship.
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Worker Adjustment and Retraining Notification Act (WARN) (1988)
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WARN requires employers (with 100 or more employees) that are planning a plant closing or a mass layoff to give affected employees at least 60 days' notice of such an employment action. While the 60-day period is the minimum for advance notice, this provision is not intended to discourage employers from voluntarily providing longer periods of advance notice. Not all plant closings and layoffs are subject to the Act. WARN sets out specific exemptions and provides for a reduction in the notification period in particular circumstances.
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Employee Polygraph Protection Act (1988)
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Prohibits most private employers from requiring employees or candidates for employment to submit to a lie detector test. The only time an employer may ask (but not require) an employee to take a polygraph test is in the conduct of an ongoing investigation into theft, embezzlement or a similar economic loss; or if the employee had access to property that was lost and the employer has a reasonable suspicion that the employee was involved. Employees who take a polygraph test may not be discharged or suffer any other negative consequences solely on the basis of the test, without other supporting evidence. The Act strictly mandates how polygraph tests may be administered and how the results are used.
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Americans with Disabilities Act (ADA) (1990)
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The is a federal anti-discrimination law which prohibits private employers, state and local governments, employment agencies and labor unions from discriminating against qualified individuals with disabilities in job application procedures, hiring, firing, advancement, compensation, job training and other terms, conditions and privileges of employment. This law (covering employers with 15 or more employees) is designed to remove barriers that prevent qualified individuals with disabilities from enjoying the same employment opportunities that are available to persons without disabilities. When an individual's disability creates a barrier to employment opportunities, the requires employers to consider whether a reasonable accommodation could remove the barrier.
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Fair Credit Reporting Act (FCRA) of 1969
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The FCRA requires employers that use credit reports and that deny employment on the basis of a credit report to so notify the applicant and to provide the name and address of the consumer reporting agency used.
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Congressional Accountability Act (1995)
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one of the first pieces of legislation passed by the 104th United States Congress, applied several civil rights, labor, and workplace safety and health laws to the U.S. Congress and its associated agencies, requiring them to follow many of the same employment and workplace safety laws applied to businesses and the federal government
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Uniformed Services Employment and Reemployment Rights Act (1994)
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The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA, or the Act), signed into law on October 13, 1994, clarifies and strengthens the Veterans’ Reemployment Rights (VRR) Statute. USERRA is intended to minimize the disadvantages to an individual that can occur when that person needs to be absent from his or her civilian employment in order to serve in the uniformed services. USERRA makes major improvements in protecting service member rights and benefits by clarifying the law and improving enforcement mechanisms. USERRA expands the cumulative length of time that an individual may be absent from work for uniformed services duty and retain reemployment rights.
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Civil Rights Act (1991)
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A federal statute that amended the Civil Rights Act of 1964 enacted to strengthen and improve federal civil rights laws by providing for damages in cases of intentional employment discrimination, clarifying provisions regarding disparate impact actions and for other purposes.
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Ability test
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An assessment instrument used to measure an individual’s abilities, mental or physical skills level (i.e. problem solving, manual dexterity, etc.).
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Ability
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Aptitude or competence, the skill or proficiency needed to perform certain tasks.
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Absenteeism
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Referred to as the habitual failure of employees to report for work when they are scheduled to work.
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Adult learner
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Individuals who are beyond postsecondary education age, are employed on a full- or part-time basis and are enrolled in a formal or informal educational program.
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Adverse action
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Any act by an employer that results in an individual or group of individuals being deprived of equal employment opportunities.
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Adverse impact
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A substantially different rate of selection in hiring, promotion or other employment decision that works to the disadvantage of a race, sex or ethnic group.
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Adverse selection
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An employer’s selection practices or policies that result in discriminatory or unfavorable treatment toward an individual or
individuals who are members of a protected group. |
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Advisory committee
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A group or panel of internal or external members with no decision- making authority, assembled to identify and discuss specific issues and make recommendations.
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Affected class
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Groups of employees, former employees or applicants who have experienced and/or continue to experience the loss of employment opportunities or benefits due to discriminatory practices or policies of the employer.
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Affirmative action (AA)
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Any program, policy or procedure that an employer implements in order to correct past discrimination and prevent current and future discrimination within the workplace.
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Affirmative Action plan (AAP)
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A written set of specific, results-oriented procedures to be followed by all federal contractors holding contracts of $50,000 or more and employing 50 or more people and intended to remedy the effects of past discrimination against or underutilization of women and minorities. The effectiveness of the plan is measured by the results it actually achieves rather than by the results intended and by the good faith efforts undertaken by the contractor to increase the pool of qualified women and minorities in all parts of the organization.
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Age Discrimination in Employment Act (ADEA) of 1967
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Americans with Disabilities Act () of 1990
The is a federal anti-discrimination law which prohibits private employers, state and local governments, employment agencies and labor unions from discriminating against qualified individuals with disabilities in job application procedures, hiring, firing, advancement, compensation, job training and other terms, conditions and privileges of employment. This law (covering employers with 15 or more employees) is designed to remove barriers that prevent qualified individuals with disabilities from enjoying the same employment opportunities that are available to persons without disabilities. When an individual's disability creates a barrier to employment opportunities, the requires employers to consider whether a reasonable accommodation could remove the barrier. The ADEA protects workers age 40 and over by prohibiting discrimination against workers 40 and over in any employment or employment-related decision. The Act applies to most employers with 20 or more employees. One of the main provisions of the Act is that employers, with very few exceptions, can no longer force an employee to retire. |
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Aptitude testing
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A standardized testing instrument used during the selection process that is intended to measure and predict an individual’s abilities.
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Arbitration
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An alternative dispute resolution method that uses a neutral third party (i.e. arbitrator) to resolve individual, group or labor-management conflicts and issue a binding decision.
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Availability analysis
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The process of determining the number of qualified minorities and women in the relevant available workforce who possess or have the ability to acquire the required skills or qualifications for any available position within the organization
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Baby boomers
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The term used to describe those individuals born between 1945 and 1970.
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Baby busters
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The term used to describe those individuals born between 1961 and 1972.
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Balanced scorecard
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A popular strategic management concept developed in the early 1990s by Drs. Robert Kaplan and David Norton. The balanced scorecard is a management and measurement system that enables organizations to clarify their vision and strategy and translate them into action. The goal of the balanced scorecard is to tie business performance to organizational strategy by measuring results in four areas: financial performance, customer knowledge, internal business processes, and learning and growth.
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Barrier analysis
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The process of reviewing an organization’s policies and procedures to identify and eliminate impediments in recruitment, selection, transfer, or promotion of protected class individuals throughout the organization.
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Behavioral-based interview
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An interview technique that focuses on a candidate’s past experiences, behaviors, knowledge, skills and abilities by asking the candidate to provide specific examples of when he or she has demonstrated certain behaviors or skills as a means of predicting future behavior and performance.
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Behaviorally anchored rating scale (BARS)
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An appraisal that requires raters to list important dimensions of a particular job and collect information regarding the critical behaviors that distinguish between successful and unsuccessful performance. These critical behaviors are then categorized and appointed a numerical value used as the basis for rating performance.
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Bell-shaped curve
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The curve representing the normal distribution of a rating or test score.
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Benchmarking
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Benchmarks
The standards used as a basis for comparison or The systematic process of comparing an organization’s products, services and practices against those of competitor organizations or other industry leaders to determine what it is they do that allows them to achieve high levels of performance. |
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Bereavement leave
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An employer policy that provides a specific number of paid days off following the death of an employee’s spouse, parent, child, grandparent or in-law so that the employee may attend funeral proceedings, etc.
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Cognitive ability testing
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A testing instrument used during the selection process in order to measure the candidate’s learning and reasoning abilities.
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Compa ratio
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The ratio of an actual pay rate to the midpoint for the respective pay grade used for comparing actual rates of pay with the midpoint for a particular pay grade within the salary structure.
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Comparative rating
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A rating method that determines ratings by making comparisons between the individuals being rated.
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Compensatory time-off plan
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The practice of giving employees paid time off that can be used in the future in lieu of paying them overtime for hours worked in excess of 40 per week. While an acceptable practice in the public sector, the FLSA places very strict limitations on the use of compensatory time off for private sector employers.
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Competency-based pay
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A compensation system that recognizes employees for the depth, breadth and types of skills they obtain and apply in their work. Also known as skill-based and knowledge-based pay.
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Concurrent validity
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The means of determining a test’s or other assessment tool’s validity by comparing test scores against actual job performance.
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Consolidated Omnibus Reconciliation Act (COBRA) of 1985
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Under the Consolidated Omnibus Budget Reconciliation Act of 1985, if an employee terminates employment with the company, the employee is entitled to continue participating in the company’s group health plan for a prescribed period of time, usually 18 months. (In certain circumstances, such as an employee’s divorce or death, the length of coverage period may be longer for qualified dependents). COBRA coverage is not extended to employees terminated for gross misconduct.
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Constructive discharge
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Occurs when a manager/supervisor or employer makes working conditions so unbearable or abusive that a reasonable person believes that resignation is the only appropriate action to take.
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Construct validity
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The extent to which a test or other assessment instrument measures a particular trait.
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Consumer Price Index (CPI)
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An index of prices used to measure the change in the cost of basic goods and services in comparison with a fixed base period. Also called cost-of-living index.
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Content validity
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The degree to which a test or other assessment instrument used during the selection process measures the skills, knowledge and abilities or other related job qualifications.
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Contingency planning
Contingent worker Refers to an individual employed in a job that does not have an explicit contract for long-term employment (i.e., independent contractor or temporary employee) Contractor A contractor is a firm that does business with the federal government. A prime contractor receives $50,000 or more in contracts each year and employs more than 50 people in total employment. A subcontractor performs part of the contract at the direction of the prime contractor and receives $10,000 or more in subcontracts each year. Core competencies The skills, knowledge and abilities which employees must possess in order to successfully perform job functions that are essential to business operations. Core work activities The tasks or functions within an organization considered essential to the organization’s business operations. Core workers Employees who are considered to be vital to the organization’s successful business operations. Corporate citizenship ‘Corporate Citizenship is the contribution a company makes to society through its core business activities, its social investment and philanthropy programs, and its engagement in public policy. The manner in which a company manages its economic, social and environmental relationships, and the way it engages with its stakeholders (such as shareholders, employees, customers, business partners, governments and communities), has an impact on the company's long-term success.’ ( World Economic Forum) The term is also used interchangeably with other similar terms such as Corporate Governance and/or Corporate Social Responsibility. Corporate culture The beliefs, values and practices adopted by an organization that directly influence employee conduct and behavior. Corporate image The way in which an organization is viewed by clients, employees, vendors or the general public. Corporate values The prescribed standards, behaviors, principles or concepts that an organization regards as highly important. Corrective action Correction of deficiencies identified during a compliance review of an affirmative action plan. Cost-benefit analysis A means of measuring the costs associated with a specific program, project, activity or benefit compared with the total benefit or value derived. |
The process of identifying an organization’s critical information systems and business operations and developing and implementing plans to enable those systems and operations to resume following a disaster or other emergency situation.
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Cost-per-hire
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The direct and indirect costs that are calculated to measure the costs associated with filling a vacancy. Direct costs include, but are not limited to, advertising, employment agency fees, job fairs, employee referrals, credit and reference checking costs, examination and testing costs during the selection process, signing bonuses, relocation costs, human resource overhead costs, college recruiting costs, Internet costs and training and communication costs. Indirect costs can include, but are also not limited to, lower productivity, costs of turnover, morale impacts, safety (if there is a higher number of accidents as a result of the vacancy), disruption of regular business functions, overtime (to compensate for the vacancy) and hiring to maintain production.
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Cost of living adjustment (COLA)
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An annual adjustment in wages to offset a change in purchasing power, as measured by the Consumer Price Index. The Consumer Price Index is used rather than the Producer Price Index because the purpose is to offset inflation as experienced by the consumer, not the producer.
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Cost of living
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The amount of money needed to buy the goods and services required to maintain a specific standard of living. The cost of living is closely tied to rates of inflation and deflation. In estimating such costs, food, clothing, rent, fuel, lighting, and furnishings as well as expenses for communication, education, recreation, transportation, and medical services are generally included. The Consumer Price Index (CPI), a measurement of the cost of living prepared by the U.S. Bureau of Labor Statistics, tracks changes in retail prices of an average “market basket.” Changes are compared to prices in a previously selected base year, from which figures the percentage increase or decrease in the cost of living can be calculated.
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Decentralization
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The process of assigning decision-making authority to lower levels within the organizational hierarchy
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Cost of labor
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The total payments in the form of gross salary and wages, bonuses, and other cash allowances paid to employees and salaries, allowances, fees, bonuses and commissions paid to working directors and fees paid to non-working directors for their attendance at the Board of Directors' meetings
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Deductive reasoning
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The ability to extract certain rules based on a sequence of experiences or observations and apply those rules to other similar situations.
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Defined contribution plan
De-layering An organizational restructuring strategy meant to reduce the organization’s existing levels of managers or supervisors. |
An individual account plan in which the employer contributes a specific amount of money into each year that is to be distributed among the accounts of each plan participant.
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De minimis rule
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Described by IRS guidelines as any benefit, property or service provided to an employee that has so little value (taking into account how frequently similar benefits are provided to employees) that accounting for it would be unreasonable or administratively impracticable. Cash, no matter how little, is never excludable as a de minimis benefit, except for occasional meal money or transportation fare.
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Delegation
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The process of assigning tasks or projects to subordinates and clearly dictating expected outcomes and timeframe for completion
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Department of Labor (DOL)
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The federal agency responsible for administering and enforcing a large quantity of federal labor laws, including, but not limited to, overtime pay, child labor, wages and hours, workplace health and safety, FMLA, and various other employee rights.
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Diversity
Displaced workers Individuals who have lost their jobs due to a plant closing, relocation, downsizing or position elimination. Dissatisfiers Factors, such as working conditions, job functions, pay and benefits or organizational policies and practices, that contribute to employee dissatisfaction. Distance learning The process of delivering educational or instructional programs to locations away from a classroom or site to another location by using technology, such as video or audio conferencing, computers, Web-based applications or other multimedia communications. Diversity |
The collective mixture of differences and similarities that includes for example, individual and organizational characteristics, values, beliefs, experiences, backgrounds, preferences and behaviors.
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Distractors
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Refers to incorporating incorrect items or answers into a testing instrument where the testee is asked to select from a group of items or answers (i.e., multiple choice exams).
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Disparate impact
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Under Equal Employment Opportunity (EEO) law, a less favorable effect for one group than for another. A disparate impact results when rules applied to all employees have a different and more inhibiting effect on women and minority groups than on the majority
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Disparate treatment
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Such treatment results when rules or policies are applied inconsistently to one group of people over another. Discrimination may result when rules and policies are applied differently to members of protected classes.
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Due diligence
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A critical component of mergers and acquisitions, it is the process of conducting an investigation and evaluation in order to examine the details of a particular investment or purchase by obtaining sufficient and accurate information or documents that may influence the outcome of the transaction
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EEOC guidelines
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Interpretations of Title VII expressed by the EEOC that don't have the force of law, but tend to be supported by the courts. These positions are outlined in various EEOC publications ("Discrimination Because of Religion," etc.)
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Emotional intelligence
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Describes the mental ability an individual possesses enabling him or her to be sensitive and understanding to the emotions of others, as well as to manage his or her own emotions and impulses.
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Eighty-percent rule
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Method of determining adverse impact. Selection rates for any group that are less than 80 percent (four-fifths) of the rate for other groups is evidence of a violation of this rule.
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Electromation
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Used to refer to a NLRB ruling declaring that, in nonunion companies, labor management cooperation (i.e., quality circles, employee involvement programs, etc.) is illegal because the committees through which such cooperation takes place are equal to a labor organization, as defined by the NLRA.
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Employee Polygraph Protection Act of 1988
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Prohibits most private employers from requiring employees or candidates for employment to submit to a lie detector test. The only time an employer may ask (but not require) an employee to take a polygraph test is in the conduct of an ongoing investigation into theft, embezzlement or a similar economic loss; or if the employee had access to property that was lost and the employer has a reasonable suspicion that the employee was involved. Employees who take a polygraph test may not be discharged or suffer any other negative consequences solely on the basis of the test, without other supporting evidence. The Act strictly mandates how polygraph tests may be administered and how the results are used.
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Employee Retirement Income Security Act (ERISA)of 1974
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ERISA sets requirements for the provision and administration of employee benefit plans. Employee benefit plans include health care benefits, profit sharing and pension plans, for example.
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Employee stock ownership plan (ESOP)
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A trust established by a corporation that operates as a tax-qualified defined contribution retirement plan, but unlike traditional defined contribution plans, employer contributions are invested in the company's stock.
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Employee stock purchase plan
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An employer-sponsored plan that allows employees to purchase company stock below the fair market value.
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Equal Pay Act of 1963
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A federal law prohibiting employers from discriminating between male employees and female employees in terms of pay when they are performing jobs that are essentially the same or of comparable worth.
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Error of contrast
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An error occurring when raters assign ratings based on comparisons between individuals being rated instead of using previously established organizational standards.
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Error of recency
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Occurs when raters assign a rating based on the individual’s short-term versus long-term job performance.
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Error of projection
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An error in rating, which occurs when raters are inclined to allow their own personal characteristics or values to affect the ratings they assign.
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Error of inconsistency
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Occurs when no established organizational standards for rating an individual exist, and raters use different strategies for assigning ratings.
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Error of halo
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A rating error occurring when the rater assigns a rating based on individuals’ positive or negative characteristics.
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Error of central tendency
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A rating error occurring when the rater displays a propensity to assign only average ratings to all individuals being rated.
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Error of standards
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Occurs when a rating is assigned based on impracticable standards established by the rater.
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Essential functions
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The primary job functions or tasks that an individual must be able to perform with or without a reasonable accommodation.
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Essay appraisal
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An appraisal strategy requiring the rater to provide a narrative description of an individual’s performance based on the rater’s performance observations.
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Errors and omissions insurance
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An insurance policy providing businesses with coverage and protection against potential lawsuits from clients or customers.
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Expatriate
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An employee who is transferred to work abroad on a long-term job assignment.
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Expectancy theory
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A motivational theory concluding that individuals feel a sense of pleasure and gratification when they have completed a challenging task and therefore are generally more motivated.
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Family and Medical Leave Act (FMLA)of 1993
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The Family and Medical Leave Act (FMLA) allows employees who have met minimum service requirements (12 months employed by the company with 1,250 hours of service in the preceding 12 months) to take up to 12 weeks of unpaid leave per year for: (1) a serious health condition; (2) to care for a family member with a serious health condition; (3) the birth of a child; or (4) the placement of a child for adoption or foster care.
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Gainsharing plan
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A group incentive plan used to enhance productivity by sharing with a group a percentage of the gains the organization realizes from specific group efforts.
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Garnishment
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A court order requiring an employer to withhold a certain percentage from an employee’s pay in order to settle a debt with a creditor.
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Halo/horn effect
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A form of interviewer bias, occurring when the interviewer rates or judges an individual based on the individual’s positive or strongest traits, allowing their overall perception of the person to overshadow any negative traits. Referred to as the “halo effect” when it works in the candidate’s favor or the “horn effect” when it works against the candidate.
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Hawthorne effect
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A term produced as a result of an experiment conducted by Elton Mayo whereby he concluded that expressing concern for employees and treating them in a manner that fulfills their basic human needs and wants will ultimately result in better performance
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Health Insurance Portability and Accountability Act (HIPAA )of 1996
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The Act was enacted to make health insurance more "portable" from one employer to another. The law mandates procedures for both new hires and for existing employees who are leaving the company. Employees who are new to a company can use evidence of previous health care coverage that is provided by their former employer to reduce or eliminate the new employer's preexisting condition requirements. Employees who are leaving a company must be provided a certificate of prior creditable health care coverage to use for this purpose. The law includes other provisions regarding restrictions on preexisting conditions, special enrollment rights and privacy rights and protections.
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Honesty/integrity testing
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Tests used to assess an individual’s propensity for dishonest conduct or behavior (i.e., stealing or lying).
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Hostile environment harassment
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Sexual or other discriminatory conduct that is so severe and pervasive that it interferes with an individual’s ability to perform the job, creates an intimidating, offensive, threatening or humiliating work environment or causes a situation where a person’s psychological well-being is adversely affected.
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Horizontal organization
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A flat organizational structure that consists of fewer hierarchal levels. Such organizational structures often rely on the use of cross-functional teams.
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Horizontal integration
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Also known as job rotation, it is a job enlargement method whereby employees are shifted between various comparable jobs in an effort to prevent boredom and boost morale.
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Hygiene theory
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Studies conducted by Frederick Herzberg used to better understand employee attitudes and motivation and what factors cause job satisfaction and dissatisfaction. Also referred to as the Motivation-Hygiene theory.
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Immigration Reform and Control Act (IRCA) of 1986
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The Immigration Reform and Control Act (IRCA) prohibits the employment of individuals who are not legally authorized to work in the United States or in an employment classification that they are not authorized to fill. The IRCA requires employers to certify (using the I-9 form) within three days of employment the identity and eligibility to work of all employees hired. IRCA also prohibits discrimination in employment-related matters on the basis of national origin or citizenship.
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Impact ratio
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Selection rate, for an employment opportunity, for a group of people in a protected class, divided by the selection rate for the group with the highest selection rate. For an adverse employment situation, the impact ratio is the rate of the group with the lowest rate divided by the rate of the group in question. Impact ratios are compared to the 80 percent rule to determine adverse impact.
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Integrity testing
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A pre-employment psychological assessment tool used to gauge an applicant’s honesty.
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Intelligence quotient (IQ)
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The measure of an individual’s cognitive abilities, as measured by an intelligence test.
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Intellectual property
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Property which is protected under federal law, including trade secrets, confidential or proprietary information, copyrightable or creative works, ideas, patents or inventions.
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Internal audit
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The process of conducting an in-house examination of one or more of an organization’s processes, functions, programs, etc.
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Internal mobility
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The movement of employees from one job to another either vertically or laterally within an organizational structure. Internal mobility is a cluster comprising of promotion, demotion, transfer and separations. Such movements may take place between positions in specific areas, departments, divisions or establishments for employers with multiple establishments .
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Internal equity
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A term used to refer to employees’ perceived fairness of a company’s pay structure as it relates to their responsibilities, compensation, benefits, and working conditions compared with those of other employees in similar or like positions.
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Intersectional discrimination
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Discrimination not just because of one protected trait (e.g., race), but also because of the intersection of two or more protected bases (e.g., race and sex), i.e., Title VII prohibits discrimination against African American women even if the employer does not discriminate against White women or African American men
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Job analysis
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The systematic process of gathering and examining and interpreting data regarding the specific tasks comprising a job.
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Job classification
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A method of evaluation used for job comparisons, which groups jobs into a prearranged number of grades, each having a class description and a specified pay range.
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Job description
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A written description of a job which includes information regarding the general nature of the work to be performed, specific responsibilities and duties, and the employee characteristics required to perform the job.
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Job displacement
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Occurs when an employee’s position is eliminated.
Job evaluation Used for compensation planning purposes, it is the process of comparing a job with other jobs in an organization to determine an appropriate pay rate for the job. Job grade The group into which jobs of the same or similar worth are placed for determining appropriate rates of pay. Job group A division within the contractor's workforce for the purposes of analyzing the workforce for underutilization. Job grouping is done to group job titles together based on similarity of job content, pay rates and opportunities for advancement. |
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Job enlarging
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A method used to keep workers motivated, the process involves adding new tasks which are of the same level of skill and responsibility to a job.
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Job enrichment
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The practice of adding tasks to a job as a means of increasing the amount of employee control or responsibility.
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Job-relatedness
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The requirement that an employer be able to demonstrate that a particular action, policy or job requirement is related to the actual job.
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Job rotation
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The practice of transferring employees for temporary periods of time between varying jobs within an organization. Often used as a training and development method.
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Job sampling
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During the selection process, the term refers to the practice of observing and measuring how an applicant actually performs certain selected job tasks.
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Job satisfaction
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Used to define how an employee feels regarding their job, work environment, pay, benefits, etc.
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Job shadowing
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A temporary, unpaid work experience opportunity where students learn about a particular job (typically in a field of interest) by walking through the work day as a shadow to an employee.
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Job title
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A specific name given to a particular job which is used to distinguish that job from other jobs within the organization.
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Job sharing
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The practice of two different employees performing the tasks of one full-time position.
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Knowledge-based pay
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A salary differentiation system that bases compensation on an individual’s education, experience, knowledge, skills or specialized training. Also referred to as skill-based pay
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Knowledge Integration
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Knowledge integration is broadly defined as the assimilation, extraction, transformation and loading of information from disparate systems into a single more unified, consistent and accurate data store used for evaluating, manipulating and reporting information.
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Knowledge management
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The process of creating, acquiring, sharing and managing knowledge to augment individual and organizational performance.
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Management by Objective (MBO)
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A performance appraisal strategy in which subordinates determine and set goals for themselves based on the overall goals and objectives for the organization.
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Mandatory Retirement Age Law of 1978
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A statute which prohibits (with the exception of exempted employees and positions) employers from having policies or practices that call for mandatory retirement of employees under the age of 70
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Mediation
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A private negotiation and decision-making process in which a mediator assists individuals or groups in finding a resolution to a particular issue or conflict.
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Medicare
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A health insurance program administered by the Social Security Administration which is broken into two distinct categories: 1) Medicare Part A helps with hospital costs; and 2) Medicare Part B requires a monthly fee and is used to pay medical costs for people 65 years of age and older, some disabled people under 65 years of age and people with end-stage renal disease (permanent kidney failure treated with dialysis or a transplant).
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Mental Health Parity Act (MHPA) of 1996
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Prohibits group health plans and insurance companies that offer mental health benefits from setting annual or lifetime limits on mental health benefits that are lower than those limits set for any other condition.
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Merit pay
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A compensation system whereby base pay increases are determined by individual performance.
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Mission statement
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A statement illustrating what the company is, what the company does and where the company is headed.
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Netiquette
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Refers to Internet use rules of conduct, involving respecting others' privacy and not doing anything online that is offensive, annoying or frustrating to other people.
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National Labor Relations Act (NLRA) of 1947
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The National Labor Relations Act (NLRA), passed in 1935, provides that all employees have the right to form, join and assist labor organizations and to bargain collectively with their employers.
An agreement reached by the United States, Canada and Mexico that instituted a schedule for the phasing out of tariffs and eliminated a variety of fees and other hindrances to encourage free trade between the three North American countries. |
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National origin
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The country--including those that no longer exist--of one's birth or of one's ancestors' birth. "National origin" and "ethnicity" often are used interchangeably, although "ethnic group" can refer to religion or color, as well as country of one's ancestry.
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Naturalization
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The process by which an alien is made a citizen of the United States of America and relinquishes citizenship to any other country.
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Needs analysis
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A method of analyzing how employee skill deficits can be addressed through current or future training and professional development programs, as well as determining the types of training/development programs required and how to prioritize training/development.
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Negligent hiring
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A claim made against an employer based on the premise of an employer’s obligation to not hire an applicant the employer knew or should have known was unsuitable and likely to behave inappropriately toward other employees.
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Negligent referral
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Negligent referral is defined as the failure of an employer to disclose complete and factual information about former or current employee to another employer.
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Negligent retention
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The act of failing to take appropriate disciplinary action (i.e., termination) against an employee the employer knew or should have known was unsuitable.
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Nepotism
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Favoritism shown to relatives by individuals in a position of authority, such as managers or supervisors.
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Nominal group technique
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A consensus planning tool used to identify the strengths of an organization, department or division, whereby participants are brought together to discuss important issues, problems and solutions.
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Noncompete agreement
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A contract restricting an employee from obtaining employment with a competitor within a specified industry, distance and/or time frame.
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Normative forecasting
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A method of projecting future needs in order to determine what developments will be required to meet those needs.
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Occupational Safety and Health Act (OSHA) of 1970
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A law setting forth standards that employers must comply with in order to provide working conditions that are safe and free from any health hazards for all employees. Additionally, the law also requires employers to provide employees with protection against workplace hazards that could result in illness, injury or death to an individual, as well as to communicate to employees the information on hazardous materials or chemicals they may be required to handle.
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Occupational Safety and Health Administration
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A Department of Labor office responsible for overseeing and assuring the safety and health of America's workers by setting and enforcing standards; providing training, outreach and education; establishing partnerships; and encouraging continual improvement in workplace safety and health.
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Office of Federal Contract Compliance (OFCCP)
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Division of the Employment Standards Administration in the Department of Labor responsible for enforcing three statutes for federal contractors and subcontractors: Executive Order No. 11246, the Rehabilitation Act, and the Vietnam Era Veterans' Readjustment Assistance Act. OFCCP enforces the three laws through the use of compliance reviews, complaint investigations, administrative procedures and judicial procedures.
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Ombudsperson
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A neutral third party that helps individuals or groups in conflict resolve disputes by mediating, coaching and facilitating communication between the parties and recommending an appropriate resolution.
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Open shop
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An organization that hires workers without regard to their membership in a labor union.
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Organizational behavior modification theory
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A motivational theory suggesting that an individual will behave in a manner that helps him or her avoid potential negative outcomes and achieve agreeable outcomes.
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Organization chart
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A graphic representation outlining how authority and responsibility are distributed within an organization.
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Organization development
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A planned organization-wide effort to improve and increase the organization’s effectiveness, productivity, return on investment and overall employee job satisfaction through planned interventions in the organization's processes.
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Organization planning
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The process of transforming an organization’s goals, objectives, philosophy and mission into practices and policies.
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Organizational display
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An organizational display is a detailed graphical or tabular chart, text, spreadsheet or similar presentation of the contractor's organizational structure. It must identify each organizational unit in the establishment and show the relationship of each organizational unit to the other organizational units in the establishment.
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Paired comparison
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A form of rating, in which the rater compares, one by one, the performance of each member in a group with the performance of every other member in the group.
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Pareto chart
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A bar graph used to rank in order of importance information such as causes or reasons for specific problems, so that measures for process improvement can be established.
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Partial disability
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An illness or injury that prevents an individual from performing one or more functions of his or her job.
Participative management A management style, developed by Motorola, that involves employees in the decision-making process. |
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Pay compression
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A situation occurring when only a small difference in pay exists between employees, regardless of their knowledge, skills, abilities or experience. Oftentimes, it is the result of a market-rate for a given job surpassing the increases historically awarded to long-term employees.
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Performance-based pay
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A variable pay strategy that pays employees based on their individual performance and contributions, rather than the value of the job they are performing.
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Piece rate
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A per-piece rate system that pays employees based on the number of pieces produced.
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Pregnancy Discrimination Act (PDA) of 1978
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An amendment to Title VII of the Civil Rights Act of 1964 prohibiting discrimination on the basis of pregnancy, childbirth or related medical conditions, requiring pregnancy or related conditions to be treated in the same manner as any other temporary disability.
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Pre-tax contributions
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Contributions made to a benefit plan that are exempt from all applicable state or federal tax withholding requirements.
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Premium pay
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Additional compensation paid for work performed outside of regularly scheduled work hours.
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Prevailing wage
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A rate of pay determined by the U.S. Department of Labor based upon the geographic area for a given class of labor and type of project.
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Prima facie case
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Latin for “at first view” or “at first appearance,” a prima-facie case is a lawsuit that requires an employer to articulate a reason that sufficiently proves that any decision or action taken was made based on legitimate and nondiscriminatory factors.
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Privacy
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Refers to information about an employee which he or she regards as personal or private (i.e., medical information, financial data, etc.) and the right of that individual to not have such information shared with others.
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Profit sharing plan
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A qualified retirement plan established and maintained by an employer which enables employees and their beneficiaries to participate in the profits of the employer's business.
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Psychological test
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A written, visual or verbal assessment administered to determine cognitive and emotional skills.
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Rank order
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A rating method where the performance of a group, process or product is arranged in a particular order, such as highest to lowest.
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Reasonable accommodation
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Modifying or adjusting a job process or a work environment to better enable a qualified individual with a disability to be considered for or perform the essential functions of a job.
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Reasonable person standard
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A standard used in sexual harassment suits, referring to conduct or behavior so offensive in nature that any reasonable person, regardless of sex, would agree the conduct or behavior should be illegal.
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Reasonable suspicion testing
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A drug or alcohol test administered to an employee due to a performance or policy infraction or poor or erratic behavior.
Recordable illness/injury All occupational injuries and illnesses that require more than basic first aid treatment, or deaths that occurred in the workplace. |
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Reassignment
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Transferring individuals to alternative positions where their talents or skills may be best utilized to their own or the organization’s benefit or where they are better able to perform the job in accordance with required standards.
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Reciprocal review
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An appraisal method where the subordinate and the manager are evaluated by each other based on agreed-upon performance criteria.
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Reciprocity
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A relationship between states or other taxing jurisdictions whereby privileges granted by one are returned by the other under a reciprocal agreement.
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Recognition
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An acknowledgement of an employee’s exceptional performance or achievements expressed in the form of praise, commendation or gratitude.
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Red circle rate
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A pay rate that is above the maximum range assigned to the job grade. Employees are usually not eligible for additional pay increases until the range maximums exceed the individual pay rate.
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Redeployment
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The reassignment of employees to other departments or functions as an alternative to laying them off.
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Reduction in force
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An involuntary separation of an employee or groups of employees due to economic pressures, lack of work, organizational changes or other reasons of business necessity that require a reduction in staff.
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Reengineering
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The redesigning of business and work processes, policies or organizational structure.
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Regression analysis
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A statistical measure used to discover relationships between variables such as performance ratings and promotions.
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Rehabilitation Act of 1973
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A federal statute requiring federal agencies to ensure that electronic and information technology systems are accessible to individuals with disabilities when their jobs require the use of electronic or information technology systems.
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Reliability
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A measure of the ability of a test or other appraisal instrument to evaluate what is being measured on a consistent basis.
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Reinforcement
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The practice of providing positive feedback to an individual or groups of individuals after completion of a particular project or achievement of a particular goal.
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Release agreement
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A type of legal written document executed by an employer and signed by an employee whereby the employee relinquishes certain rights in exchange for some form of consideration, such as a benefit the employee would not have otherwise received had he or she not been discharged.
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Repatriate
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The process of returning to the United States after being placed on a long-term international assignment.
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Reprimand
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An oral or written reproach given to an employee as part of disciplinary action.
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Request for proposal (RFP)
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A document an organization sends to a vendor inviting the vendor to submit a bid for a product or service.
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Return on investment (ROI)
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A ratio of the benefit or profit derived from a specific investment, compared with the cost of the investment itself.
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Reverse discrimination
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Employment policies or practices that result in discriminatory treatment against applicants or employees who are not minorities or members of a disadvantaged group.
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Rightsizing
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An approach to reducing staff, whereby jobs are prioritized in order to identify and eliminate unnecessary work. This method uses a selection criteria based on individual jobs, rather than people, in order to avoid possibly laying off the wrong employees.
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Right-to-know
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An OSHA standard providing workers with protection from hazardous substances in the workplace by requiring employers to keep employees informed of any hazardous substances that they may be working with, as well as the hazards and symptoms associated with the substance.
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Risk management
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The use of insurance and other strategies in an effort to minimize an organization’s exposure to liability in the event a loss or injury occurs.
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Salary range
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A range of pay rates, from minimum to maximum, set for a specific pay grade.
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Salting
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Refers to paid union organizers who apply for jobs with an employer for the purpose of organizing the employer’s workforce.
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Sales compensation
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A compensation system designed for individuals employed in managerial sales or sales representative positions. Individuals are paid on a commission or percentage of sale basis, in accordance with achieving specified sales goals
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Salary structure
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A structure of job grades and pay ranges established within an organization. May be expressed as job grades or job evaluation points
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Sarbanes-Oxley Act of 2002
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The Sarbanes-Oxley Act of 2002 was enacted to increase accountability of corporations to their shareholders in the wake of recent accounting scandals. There are many financial provisions that are not germane to HR basics. Two provisions are of special interest to HR professionals--the whistleblower protection provision and the 401(k) blackout notice provision.
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Scanlon Plan
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A gainsharing program in which employees share in specific cost savings that are due to employee effort. The Scanlon Plan involves much employee participation, predating quality circles with most of the same techniques.
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S corporation
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Business enterprise allowed by the IRS for most companies with 75 or fewer shareholders, enabling the company to enjoy the benefits of incorporation while being taxed as if it were a partnership.
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Self-directed teams
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A multi-skilled, cross-functional group of employees possessing full empowerment who share responsibilities for producing a particular service or product.
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Self-funding/self-insurance
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A benefit plan whereby the employer assumes all the risk, paying out for claims but saving the cost of any associated premiums.
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Sex Discrimination Act of 1975
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The Sex Discrimination Act of 1975 prohibits discrimination against individuals based on sex or marital status in areas of employment, education, the provision of goods, facilities and services or in the management of premises.
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Skill-based pay
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A salary differentiation system that bases compensation on an individual’s education, experience, knowledge, skills or specialized training.
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Sole proprietorship
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A business enterprise in which an individual is fully and personally liable for all the obligations of the business, is entitled to all profits and exercises complete managerial control.
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Span of control
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A management principle expressing that a limit exists to the number of people an individual can effectively and successfully manage.
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Strategic HR
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The process of taking a long-term approach to Human Resource Management through the development and implementation of HR programs that address and solve business problems and directly contribute to major long-term business objectives.
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Strategic staffing
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The practice of hiring smaller core numbers of permanent employees and utilizing temporary employees to fill more highly specialized positions within the organization.
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Strategic planning
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The process of identifying an organization's long-term goals and objectives and then determining the best approach for achieving those goals and objectives.
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Strategic planning
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The process of identifying an organization's long-term goals and objectives and then determining the best approach for achieving those goals and objectives.
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Strategic staffing
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The practice of hiring smaller core numbers of permanent employees and utilizing temporary employees to fill more highly specialized positions within the organization.
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Strategic HR
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The process of taking a long-term approach to Human Resource Management through the development and implementation of HR programs that address and solve business problems and directly contribute to major long-term business objectives.
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SWOT Analysis
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A SWOT Analysis is a strategic planning tool used to collect and evaluate information on an organization’s current Strengths, Weaknesses, Opportunities, and Threats involved in a specific project or business venture.
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Systemic discrimination
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A pattern of discrimination that on the surface appears neutral but in reality is systemic or through its application of policies and practices.
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Theory X
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States that some people have an inherent dislike for work and will avoid it whenever possible. These people need to be controlled and coerced by their managers to achieve production.
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Theory Y
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Assumes that people have a psychological need to work and want achievement and responsibility. A manager's role with these people is to help them achieve their potential.
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Total compensation
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The complete pay package awarded employees on an annual basis, including all forms of money, benefits, services and in-kind payments.
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Total remuneration
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The amount of monetary and nonmonetary value to an employee of all the elements in the employment package, as well as any other intrinsic or extrinsic rewards of value to the employee.
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Total quality management
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A structured system that satisfies internal and external customers and suppliers by integrating the business environment, continuous improvement and breakthroughs with development, improvement and maintenance cycles.
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Underutilization
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As part of the affirmative action process, this report is used to determine whether certain members of protected groups are being inadequately represented within the workforce. The report uses information based on the geographic area and positions within the organization.
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Undue hardship
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For an employer to legally refuse to accommodate an applicant's or an employee's disability or religious beliefs, the employer must be able to show that such an accommodation would place a severe burden on the operation of the business.
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Unemployment insurance (UI)
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A statutory benefit. Unemployment insurance is designed to provide workers who have been laid off a weekly income during short periods of unemployment. The system is run and funded by state and federal taxes paid by employers.
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Unemployment rate
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The number of individuals unemployed as a percentage of the labor force.
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Unsafe acts
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Any action, such as horseplay, fighting, failing to abide by a safety rule, etc., that results in accident or injury to another.
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Unfair labor practice (ULP)
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An unfair labor practice (ULP) is a violation of a right protected by the Federal Service Labor-Management Relations Statute. The ULP procedures provided by the Statute are part of the basic mechanisms by which the parties are protected in the exercise of their rights.
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Unfairly discriminatory
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An action or policy resulting in members of protected groups becoming disadvantaged in relation to the employer’s selection, hiring, promotion, pay and training opportunities, when said person(s) are as equally qualified and have the same potential to be successful.
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Uniform Guidelines on Employee Selection Procedures of 1978
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The Uniform Guidelines on Employee Selection Procedures address the use of interviewing, testing, training and other employee selection tools and their impact on discrimination based on race, color, religion, sex or national origin. Specifically addressed is adverse impact, measured by the 80% test, which states that if a selection practice yields less than 80% of a protected group, as compared with the most frequently selected group, there may be evidence of discrimination. The guidelines also require employers to maintain records, for an unspecified period of time, on their selection procedures and any adverse impact noted, as well as records of the employer's workforce broken down by race and ethnic groups.
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Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994
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The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA, or the Act), signed into law on October 13, 1994, clarifies and strengthens the Veterans’ Reemployment Rights (VRR) Statute. USERRA is intended to minimize the disadvantages to an individual that can occur when that person needs to be absent from his or her civilian employment in order to serve in the uniformed services. USERRA makes major improvements in protecting service member rights and benefits by clarifying the law and improving enforcement mechanisms. USERRA expands the cumulative length of time that an individual may be absent from work for uniformed services duty and retain reemployment rights.
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Union
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A formal organization certified by the National Labor Relations Board and authorized to act on behalf of employees regarding wages, benefits, working conditions, conditions of employment and job security.
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Union Shop
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A form of union security that requires employees to join the union, within a certain time after they are hired or after a compulsory-unionism contract is executed, and to maintain their membership as a condition of employment.
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Unlawful employment practice
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Any policy or practice that has discriminatory intent or effect and cannot be shown to be essential to the successful performance of the job in question.
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Unretirement
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The practice of hiring retired former employees whose skills or qualifications are in need.
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Validation
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The study of an employer's test or selection standards that proves that they are significant predictors of successful job performance (those who score high turn out to be successful on a job and those who score low turn out to be unsuccessful). The study requires a large sample of applicants and must include representatives of groups--such as minorities and women--who may be suffering adversely from such standards.
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Validity
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The general concept of validity is traditionally defined as "the degree to which a test measures what it claims, or purports, to be measuring." Validity is normally subdivided into three categories: content, criterion-related and construct validity. Validity is an essential characteristic for all tests and test ratings.
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Value statement
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A document outlining and representing the core priorities in the organization’s culture.
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Veterans Benefit Improvement Act of 2004
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An act signed into law by President Bush on December 10, 2004 that amended portions of the Uniformed Services Employment and Reemployment Rights Act (USERRA), imparting certain reemployment and benefit protections to individuals who are and employees engaged in military service. The act requires that employers extend the period for continuation of health care coverage and requires employers to provide covered employees with appropriate notice of their rights, benefits and responsibilities under USERRA.
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Vestibule training
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A form of training conducted outside of the workplace to acclimate newly hired employees with procedures and equipment or tools to be used in their jobs.
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Vesting
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An employee’s right to receive present or future pension benefits, even if the employee does not remain in the service of the employer.
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Veterans Employment Opportunities Act
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This statute extended the affirmative action and reporting responsibilities of federal contractors and subcontractors, which previously protected veterans of the Vietnam era and special disabled veterans, to include any other U. S. veteran who served on active duty during a war or in a campaign or expedition for which a campaign badge was authorized. It also raised the reporting threshold from $10,000 to $25,000 and added the requirement to report the maximum and minimum number of persons employed on the VETS-100 report.
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Vietnam Era Veteran
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Defined as an individual who served on active duty for more than 180 days, any part of which occurred during the period between August 5, 1964, and May 7, 1975, and who received other than a dishonorable discharge, as defined in the regulations implementing the Vietnam Era Veterans Readjustment Assistance Act of 1974.
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Vietnam Era Veterans Readjustment Assistance Act of 1974 (VERA)
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Federal law requiring federal contractors or subcontractors with contracts of $10,000 or more to take affirmative action to employ and advance in employment disabled veterans or those who served during the Vietnam era.
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Vision statement
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A vision statement is a description of what an organization wants to become or hopes to accomplish in the future (typically in the next 10 years).
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Wage and salary administration
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Procedures used for planning and administering organization-wide compensation programs for all levels of employees.
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Whistleblower Protection Act of 1989
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Whistleblower protection is the federal law that provides protection to employees against retaliation for reporting illegal acts of employers. An employer may not rightfully retaliate in any way, such as discharging, demoting, suspending or harassing the whistle blower. Employer retaliation of any kind may result in the whistle blower filing a charge with a government agency and/or filing a law suit against the employer.
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Willful misconduct
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Willful misconduct is defined as any action, taken by an employee consciously and willfully, that is deliberately malicious or violates a company policy. Willful misconduct can include such things as: willful or deliberate behavior inconsistent with the continuation of employment; conduct causing imminent and serious risk to a person’s health, safety, reputation or the viability or profitability of the employer’s business; theft, assault or fraud; being under the influence of drugs or alcohol at work; or refusing to carry out a lawful and reasonable instruction consistent with an employment policy.
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Work hardening
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A program, typically lasting four to six weeks, that provides workers who were injured on the job and who have undergone physical or occupational therapy the strength to be able to resume normal work functions and therefore getting them back to work.
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Workforce analysis
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A listing of each job title as the title appears in applicable collective bargaining agreements or payroll records ranked from the lowest paid to the highest paid within each department including department or unit supervision. For each job title, the following information must be given: the total number of male and female employees; the total number of male and female employees who are Black (not Hispanic), Hispanic, American Indian/Alaskan Native and Asian/Pacific Islander; and the wage rate or salary range.
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Workforce planning
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The assessment of current workforce content and composition issues used to determine what actions must be taken to respond to future needs.
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Work Opportunity Tax Credit
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The Work Opportunity Tax Credit (WOTC), authorized by the Small Business Job Protection Act of 1996 (P.L. 104-188), is a federal tax credit that encourages employers to hire nine targeted groups of job seekers by reducing employers’ federal income tax liability by as much as $2,400 per qualified new worker; $750, if working 120 hours or $1,200, if working 400 hours or more, per qualified summer youth.
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Yellow dog contract
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An employment contract or agreement, either oral or in writing, that forbids employees from joining or continuing membership in any labor union as a condition for continuing or obtaining employment
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Zero-based bonus
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A plan design feature that establishes a pre-assigned class, ratio, or ranking for a specified class of employees who will receive zero bonus awards.
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Zero-based budgeting
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A budgeting system that starts with no authorized funds as a starting point. In a zero-based budget, each activity or program to be funded must be justified every time a new budget is prepared and resources are allocated accordingly.
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