Not coming to work because of illness or personal problems. Many companies calculate the rate of absenteeism of their employees, which is the average number of days they do not come to work.
An accounting method that recognizes a company's financial performance by recording income and expenses at the time a transaction occurs, rather than when a payment is received or an invoice is paid
Computer software that helps an organization recruit employees
attritionReduction, decrease in numbers of employees
The number of employees who leave the organization for any reason: resignation, termination, end of agreement, retirement, sickness, or death
authorityExpert or person in control
Someone with extensive knowledge of a specific subject; a person in a superior position
background checkProcess of confirming a job candidate's personal and public information
Gathering data to determine the accuracy of a candidate's experience and records during employment screening (for example, verifying personal data, checking credentials, determining any criminal activity)
Workers' entitlements in addition to base salary (for example, health insurance, life insurance, disability pay, retirement pension, and so on)
benefitsNoncash compensation provided to employees
Compensation that the employee receives in addition to a base salary (for example, health insurance, company housing, company meals, clothing allowance, pension, and gym membership)
best practicesTechniques or activities that give the best results
The methods, processes, or activities that have proven to produce outstanding results for organizations' opportunities
An organizational structure in which employees share responsibility for the operation of a company
cognitive abilityIntelligence
Thinking skills and mental abilities
commuter assignmentA type of expatriate position requiring frequent travel between two countries
An international job that requires an employee to live in one country and work in another country, and to travel regularly between them (for example, an expatriate who lives in Bahrain and works in Saudi Arabia)
A number comparing a person's salary to other salaries for the same job; the comparison ratio is calculated by taking a person's salary and comparing it to the midpoint of other salaries (if a person earns $45,000 per year in a job where the salary midpoint is $50,000 per year, the compa-ratio is $45,000/$50,000 = 90%).
A method of negotiating agreements or solving problems
consolidationProcess of combining, bringing together
Combining separate companies, functional areas, or product lines; in finance, combining the assets, equity, liabilities, and operating accounts of a company with those of its subsidiaries
contingent workerPart-time or temporary employee
A person who is hired part-time to work under a contract or for a fixed period of time
The amount of money needed to recruit a new employee, which includes advertising, recruiting fees, referral fees, travel expenses, and relocation costs
cost sharingExpenses for a project being divided among those involved
Method of saving money by dividing the costs of a program, project, or business operation
Proof of a person's earned authority, status, or rights, usually in writing (for example, a university diploma, a digital certification badge, or other proof of passing a professional exam)
Taking place across the geographic boundaries of two or more countries (for example, cross-border trade)
cross-culturalComparing or interacting with two or more groups of people
Involving two or more cultures (such as national, regional, or professional cultures)
cross-trainingLearning new skills beyond one's current job responsibilities
Teaching employees the skills and responsibilities of other positions in the company to increase their effectiveness and to provide greater staffing flexibility in the organization
cultural coachingGuidance to help a person interact to achieve greater success with other cultures
Giving support and suggestions to help employees achieve greater success with different cultures
The average number of days it takes to hire someone for an open job position
dedicated HRPerson committed to human resources in an organization
A human resources position that works only on HR responsibilities within an organization
deductiveReasoning from the general to the specific
A method of reasoning that forms a conclusion from general information; the opposite of inductive reasoning, where a conclusion is formed from particular facts
A pension program that allows an employee to contribute a portion of income over time to be paid as a lump sum at retirement when the employee's income tax rate will probably be lower
A retirement plan that tells participants exactly how much money (lump sum or regular payments) they will receive on a specific later date (usually the day they retire)
A method of education that uses TV, audiotapes or videotapes, computers, and the Internet, instead of traditional classroom teaching where students are physically present with their teacher
A method of training that allows instructors, students, and content to be located in different places. This type of training can be used together with a traditional classroom, or it can be used to create virtual classrooms.
The gathering and analysis of important information related to a business acquisition or merger, such as assets and liabilities, contracts, and benefit plans
Payments or allowances that organizations give to their employees (for example, medical insurance, Social Security taxes, pension contributions, education reimbursement, and car or clothing allowances)
A measurement of employees' involvement, satisfaction, happiness, and loyalty with their employment (how hard they work and how long they stay with their organization)
employee handbookA reference document for workers in an organization
A manual that contains information about an organization's policies, procedures, and benefits
Interaction between employees and an organization (for example, communications, conflict resolution, compliance with legal regulations, career development, and performance measurement)
A trend in human resources management that allows employees to handle many job-related tasks (such as updates to their personnel data) using technology
Benefits that an organization gives its employees in addition to salary (for example, medical insurance, payments to retirement funds, and allowances for cars or clothing)
employment at willA U.S. legal principle that defines a working relationship
An employment agreement in which an employee can quit, or can be fired, at any time and for any reason
The management of products and processes that show concern for health, safety, and the environment
environmental scanningGathering internal and external information for strategic purposes
Acquiring and using information about the internal and external business environments that influence an organization's strategy (for example, determining how to respond to a talent shortage)
Computer software that combines information from all areas of an organization (such as finance, human resources, operations, and materials), and also manages contact with people outside the organization (such as customers, suppliers, and stakeholders)
A U.S. term that describes employees who work however many hours are necessary to perform the tasks of their position. They do not receive overtime pay, unlike hourly workers.
exit interviewFinal interview before leaving an organization
An interview that HR has with an employee to get feedback about the job the employee held, the work environment, and the organization
expatriateA citizen of one country who lives in another country
An employee who has been transferred from the person's country of citizenship (home country) to live and work in another country (host country)
Things that occur outside of an organization that might affect its financial health, employees, products, services, or customers (for example, political, economic, or environmental challenges)
extraterritorial lawsProvisions whereby foreigners are sometimes exempt from local laws
Laws from one country that apply to that country's citizens when they travel or live in countries where they might be exempt from some local laws. Similar exceptions can apply to companies operating abroad.
A performance measurement system that ranks employees against each other on a bell curve and according to predetermined categories such as high, low, or average
forecastingA planning tool that helps with future decisions
Analyzing the probability of future outcomes to help lessen uncertainty
When a law of an organization's home country does not apply because it is in conflict with laws of the country where the organization is doing business
The degree to which processes and procedures define job functions and organizational structure
franchisingA business model that involves licensing
Selling a license for the use of a trademark, product, or service in order to do business a certain way and receiving ongoing payment for the license
fringe benefitsPayments other than, or in addition to, salary
Payments that the employee receives other than or in addition to a salary, such as for health insurance
front-back formatAn organizational design that separates customer service and production
An organization that has two parts: one part that focuses on the customers and the market (the front), and one part that develops products and services (the back)
A perception based on observations (for example, “Americans are usually friendly”); different from a stereotype (for example, “All Americans are friendly”)
Characteristic of a company that “thinks globally, but acts locally”; when a company has a strong presence both in its own country and around the world
System of rules and processes an organization creates in order to comply with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct
The transfer of the positive qualities of a person or thing to related people or things
hardship premiumExtra compensation for difficult living conditions
Extra payment or benefits that an expatriate receives on assignment in a country where the living and working conditions are challenging
hardshipsDifficult living or working conditions for expatriates
Situations in a country that cause political or economic uncertainty that make it challenging for expatriates to live and work there. Often, expatriates receive extra hardship pay.
Company-sponsored medical plans that help employees pay for the cost of doctor visits, hospitalization, surgery, and so on
Health Insurance Portability and Accountability Act (HIPAA)A U.S. law that protects workers' health benefits and medical privacy
The Health Insurance Portability and Accountability Act (HIPAA) protects American workers in assuring the continuation of health insurance coverage and protects their medical privacy.
hidden costsExpenses that occur in addition to the purchase price
Expenses such as maintenance, supplies, training, upgrades, and other costs in addition to the purchase price
A culture that communicates indirectly, through the context of a situation more than through words, and that builds relationships slowly (for example, Japan)
Description of a group whose members are all the same or similar (for example, people from the same background and heritage); opposite of heterogeneous
Function within an organization that focuses on implementing organizational strategy, as well as recruiting, managing performance, and providing direction for the people who work in the organization
HR auditAssessment of an organization's human resources
An evaluation of the strengths, weaknesses, and development needs of human resources required for organizational performance
The part of human resource management that deals with training employees and giving them the skills they need to do their jobs both now and in the future
An explanation of the meaning of something; translating spoken language
intranetA private computer network with limited access
A restricted computer network that allows only authorized people to access the site (for example, a company intranet that allows only its employees access to its data)
Computer software that administers, tracks, and reports on employee development opportunities such as classroom and online events, e-learning programs, and training content
The way people process new information and learn most effectively (for example, some people learn best visually, through lectures, or by reading, whereas others learn best by action or doing)
An extra amount of money paid at one time rather than on a regular basis (for example, an expatriate may receive a lump-sum payment to cover the extra costs of the assignment related to housing, taxes, dependent education, and transportation)
Great ability and knowledge of some subject or activity
matrix structureA system of reporting where employees have both vertical and horizontal relationships
A system of managing staff where employees have more than one reporting relationship (for example, they could report to a direct supervisor as well as a team leader)
meanA way to calculate the average of a series of numbers
An average determined by adding up a group of numbers, and then dividing that total by the number of numbers. For example, to calculate the mean of 10, 20, 30, 40, 50: first, add the numbers (10 + 20 + 30 + 40 + 50 = 150), then count the numbers (5), and then divide the total by the number of numbers (150/5 = 30).
The middle number in a series. For example, in the series 13, 13, 13, 13, 14, 14, 16, 18, 21, the median is 14, with four numbers to the left and four numbers to the right.
An attempt to help other people or groups come to an agreement
mentoringHelping a person learn
When an experienced person shares knowledge with someone who has less experience
mergerTwo or more organizations coming together to form a new legal entity
Two or more organizations that come together through a purchase, acquisition, or sharing of resources. Usually the new organization intends to save money by eliminating duplicate jobs.
A short description of the main purpose of an organization, which does not change (unlike strategy and business practices, which can change frequently)
mobilityThe ability to move from one place to another
An HR term that refers to employees and their families who move from one location to another
A practice where people of influence appoint their relatives or friends to positions in a business, even though they may be less qualified than other candidates
Any nonprofit, voluntary, and independent organization that is not connected with any government, and that usually works to improve social or environmental conditions
The way that employees and processes are grouped into departments or functions in an organization, along with a description of reporting relationships
outsourcingContracting or subcontracting noncore business activities
Transferring certain business functions outside of the organization so that the organization can focus on core activities (examples of outsourced functions may be data processing, telemarketing, and manufacturing)
People who are similar to one another in age, background, profession, or status
per diemDaily expenses or reimbursements for an employee
The amount of money a person receives for working for one day, or the amount an organization allows an employee to spend on expenses each day (for example, meals and hotels on a business trip)
A technique in which a company gives its employees the benefits that come with owning stock, including dividends, but does not actually give them stock in the company
piece ratePayment determined by the amount produced
A wage system in which the employee is paid for each unit of production at a fixed rate
Recruiting host country nationals to manage subsidiaries in their own country, and recruiting parent country nationals to fill management positions at headquarters
A term Geert Hofstede uses in his cultural theory to describe hierarchical relationships between people in a culture. For example, high power distance means there are strong hierarchical relationships. Low power distance means greater equality and accessibility among members of the population.
An unwritten agreement of the mutual beliefs, perceptions, and informal obligations between an employer and an employee, which influence how they interact
The amount covered, or the amount of difference (for example, a salary range is the difference between the lowest and highest amount paid for a particular job)
Payments made for money already spent (for example, a company pays an employee for the cost of travel or supplies after the employee has spent his or her own money)
Stock with rules about when it can be sold (restricted stock is usually issued as part of a salary package, and has a time limit on when it can be fully transferred)
A conversion of a raw score to a common scale that can be used for comparison
scatter diagramChart that shows relationships between variables
A graph with a vertical axis and a horizontal axis with dots at each data point; also called a scatter plot or dot chart.
screening toolAn instrument used to assess an employee's suitability for a particular job
An instrument used in employee selection to help assess job suitability (for example, in-basket exercises, psychometric tests, and cultural adaptability inventories)
Unwelcome verbal, visual, or physical conduct of a sexual nature that is offensive or inappropriate
shared servicesBusiness strategy to centralize administrative functions
An operational approach where each country or unit uses administrative services from a central source rather than repeating these services in different locations (examples of services include finance, purchasing, inventory, payroll, hiring, and information technology)
short termA brief period of time
Occurring over a brief time (for example, a short-term loan or a short-term assignment)
situational interviewTechnique for assessing a job candidate's problem-solving skills
A method of assessing job candidates' skills by asking them how they would respond to specific work-related issues and problems
A group of people who interact because they have a common interest. The group communicates either in person or by using technology (for example, Facebook or Twitter).
social responsibilityAn ethical theory that guides organizations to consider the welfare of society
An organization's voluntary obligation toward the good of the environment in which it operates
A person, group, or organization that has a direct or indirect interest in the organization (for example, owners, investors, employees, suppliers, unions, or the community)
Employee benefits mandated by federal or local laws, such as Social Security and unemployment insurance
stay interviewA method of determining why employees remain with the organization
A retention strategy that helps organizations understand why their employees remain with the organization and how the organization can motivate them to continue their employment
An arrangement between two organizations to pursue common goals and share resources. Unlike a joint venture, the organizations do not form a new legal entity.
A plan of action that starts with examining the current state of an organization and then deciding how to achieve the best state for the organization's future
Process of planning, implementing, and controlling operations, which begins with acquiring raw materials and continues to customer delivery and support
A strategic planning technique used to assess the internal and external environment in which a company operates, its strengths and weaknesses (internal), and opportunities and threats (external)
synchronous learningAn online teaching method
A type of e-learning in which participants interact without a time delay, which requires them to attend at specific times
talent managementAn approach to attract, develop, and keep skilled employees
The process of recruiting, integrating, and developing new workers, developing and keeping current workers, and attracting skilled workers
A policy that makes sure that expatriates' combined home and host taxes are no more than they would have paid if they remained in their home country. The expatriate's company pays for any additional taxes.
Employee appraisal data gathered from internal and external sources (such as peers, subordinates, supervisors, customers, and suppliers); also known as multirater feedback
time-to-fillAverage time to hire people for job vacancies
The average number of days that a certain job position remains open
A business that includes everything needed to start operating in a certain location
uncertainty avoidanceThe degree of tolerance for risk and preference for clarity
One of Geert Hofstede's cultural dimensions, uncertainty avoidance describes the degree to which cultures accept ambiguity and risk. For example, in cultures with high uncertainty avoidance, people prefer clear, formal rules. In cultures with low uncertainty avoidance, people are comfortable with flexible rules.
Extra benefits or discounted services offered to employees with little extra cost to the employer (for example, additional life insurance, gym memberships, and concierge services)
A budgeting process that requires that every budget item is approved instead of only budget changes being approved. No reference is made to previous budget expenditures.