Concise Dictionary of HR Terminology

Ability.

 Competence in performing a job. (19)

Absolute judgment.

 An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards. (208)

Adverse impact.

 Discrimination that occurs when the equal application of an employment standard has an unequal effect on one or more protected classes. Also called disparate impact. (88)

Affirmative action.

 A strategy intended to achieve fair employment by urging employers to hire certain groups of people who were discriminated against in the past. (85)

Age Discrimination in Employment Act (ADEA).

 The law prohibiting discrimination against people who are 40 or older. (95)

Americans with Disabilities Act (ADA).

 The law forbidding employment discrimination against people with disabilities who are able to perform the essential functions of the job with or without reasonable accommodation. (96)

Appeals procedure.

 A procedure that allows employees to voice their reactions to management practices and to challenge management decisions. (414)

Apprenticeship.

 A program in which promising prospective employees are groomed before they are actually hired on a permanent basis. (141)

Arbitration.

 The last step in a grievance procedure. The decision of the arbitrator, who is a neutral individual selected from outside the firm, is binding on both parties. (489)

Assessment center.

 A set of simulated tasks or exercises that candidates (usually for managerial positions) are asked to perform. (169)

Attrition.

 An employment policy designed to reduce the company’s workforce by not refilling job vacancies that are created by turnover. (192)

Award.

 A one-time reward usually given in the form of a tangible prize. (335)

Base compensation.

 The fixed pay an employee receives on a regular basis, either in the form of a salary or as an hourly wage. (287)

Behavioral appraisal instrument.

 An appraisal tool that asks managers to assess a worker’s behaviors. (210)

Benchmark or key job.

 A job that is similar or comparable in content across firms. (307)

Benefits mix.

 The complete package of benefits that a company offers its employees. (366)

Bona fide occupational qualification (BFOQ).

 A characteristic that must be present in all employees for a particular job. (89)

Bonus program or lump-sum payment.

 A financial incentive that is given on a one-time basis and does not raise the employee’s base pay permanently. (334)

Boundaryless organizational structure.

 An organizational structure that enables an organization to form relationships with customers, suppliers, and/or competitors, either to pool organizational resources for mutual benefit or to encourage cooperation in an uncertain environment. (48)

Brain drain.

 The loss of high-talent key personnel to competitors or start-up ventures. (20)

Brainstorming.

 A creativity training technique in which participants are given the opportunity to generate ideas openly, without fear of judgment. (250)

Bureaucratic organizational structure.

 A pyramid-shaped organizational structure that consists of hierarchies with many levels of management. (46)

Burnout.

 A stress syndrome characterized by emotional exhaustion, depersonalization, and reduced personal accomplishment. (520)

Business process reengineering (BPR).

 A fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. (49)

Business unionism.

 A form of unionism that focuses on improving workers’ economic well-being. (470)

Business unit strategy.

 The formulation and implementation of strategies by a firm that is relatively autonomous, even if it is part of a larger corporation. (28)

Career development.

 An ongoing and formalized effort that focuses on developing enriched and more capable workers. (262)

Career path.

 A chart showing the possible directions and career opportunities available in an organization; it presents the steps in a possible career and a plausible timetable for accomplishing them. (272)

Career resource center.

 A collection of career development materials such as workbooks, tapes, and texts. (275)

Codetermination.

 The representation of workers on a corporation’s board of directors; used in Germany. (475)

Coinsurance.

 Payments made to cover health care expenses that are split between the employer’s insurance company and the insured employee. (363)

Collective bargaining.

 A system in which unions and management negotiate with each other to develop the work rules under which union members will work for a stipulated period of time. (470)

Comparability.

 In performance ratings, the degree to which the performance ratings given by various supervisors in an organization are based on similar standards. (216)

Comparable worth.

 A pay concept or doctrine that calls for comparable pay for jobs that require comparable skills, effort, and responsibility and have comparable working conditions, even if the job content is different. (314)

Compensable factors.

 Work-related criteria that an organization considers most important in assessing the relative value of different jobs. (304)

Compensatory damages.

 Fines awarded to a plaintiff to compensate for the financial or psychological harm the plaintiff has suffered. (94)

Competencies.

 Characteristics associated with successful performance. (207)

Competency model.

 Set of competencies associated with a job. (207)

Conciliation.

 An attempt to reach a negotiated settlement between the employer and an employee or applicant in an EEO case. (99)

Concurrent validity.

 Extent of correlation between selection and performance scores, when measured at the same time. (164)

Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985.

 Legislation that gives employees the right to continue their health insurance coverage for 18 to 36 months after their employment has terminated. (374)

Contingent workers.

 Workers hired to deal with temporary increases in an organization’s workload or to do work that is not part of its core set of capabilities. (67)

Contract.

 A legally binding promise between two or more competent parties. (430)

Contractual right.

 A right based on the law of contracts. (468)

Contributions.

 Payments made for benefits coverage. Contributions for a specific benefit may come from the employer, employee, or both. (363)

Copayment.

 A small payment made by the employee for each office visit to a physician under a health plan. The health plan pays for additional medical expenses that exceed the copayment at no cost to the employee. (363)

Core time.

 Time when all employees are expected to be at work. Part of a flexible work hours arrangement. (72)

Core workers.

 An organization’s full-time employees. (67)

Corporate strategy.

 The mix of businesses a corporation decides to hold and the flow of resources among those businesses. (28)

Cost-of-living adjustment (COLA).

 A pay raise, usually made across the board, that is tied to such inflation indicators as the consumer price index. (492)

Cross-functional training.

 Training employees to perform operations in areas other than their assigned job. (249)

Cultural determinism.

 The idea that one can successfully infer an individual’s motivations, interests, values, and behavioral traits based on that individual’s group memberships. (142)

Cultural relativity concept of management.

 The management concept holding that management practices should be molded to the different sets of values, beliefs, attitudes, and behaviors exhibited by a diverse workforce. (125)

Culture shock.

 The inability to adjust to a different cultural environment. (539)

Cumulative trauma disorder (CTD).

 An occupational injury that occurs from repetitive physical movements, such as assembly-line work or data entry. (515)

Decentralization.

 Transferring responsibility and decision-making authority from a central office to people and locations closer to the situation that demands attention. (11)

Deductible.

 An annual out-of-pocket expenditure that an insurance policyholder must make before the insurance plan makes any reimbursements. (363)

Defined benefit plan or pension.

 A retirement plan that promises to pay a fixed dollar amount of retirement income based on a formula that takes into account the average of the employee’s last three to five years’ earnings prior to retirement. (381)

Defined contribution plan.

 A retirement plan in which the employer promises to contribute a specific amount of funds into the plan for each participant. The final value of each participant’s retirement income depends on the success of the plan’s investments. (381)

Development.

 An effort to provide employees with the abilities the organization will need in the future. (237)

Dimension.

 An aspect of performance that determines effective job performance. (206)

Discrimination.

 The making of distinctions. In HR context, the making of distinctions among people. (88)

Disparate treatment.

 Discrimination that occurs when individuals are treated differently because of their membership in a protected class. (88)

Distinctive competencies.

 The characteristics that give a firm a competitive edge. (32)

Distributive bargaining.

 Bargaining that focuses on convincing the other party that the cost of disagreeing with the proposed terms would be very high. (484)

Diversity.

 Human characteristics that make people different from one another. (119)

Diversity audit.

 A review of the effectiveness of an organization’s diversity management program. (141)

Diversity training programs.

 Programs that provide diversity awareness training and educate employees on specific cultural and sex differences and how to respond to these in the workplace. (138)

Downsizing.

 (1) A company strategy to reduce the scale (size) and scope of its business in order to improve the company’s financial performance. (2) A reduction in a company’s workforce to improve its bottom line. (11), (189)

Downward communication.

 Communication that allows managers to implement their decisions and to influence employees lower in the organizational hierarchy. (403)

Dual-career couple.

 A couple whose members both have occupational responsibilities and career issues at stake. (265)

Due process.

 Equal and fair application of a policy or law. (431)

Economic strike.

 A strike that takes place when an agreement is not reached during collective bargaining. (487)

Egalitarian pay system.

 A pay plan in which most employees are part of the same compensation system. (296)

Electronic mail (e-mail).

 A form of electronic communication that allows employees to communicate with each other via electronic messages sent through personal computer terminals linked by a network. (406)

Elitist pay system.

 A pay plan in which different compensation systems are established for employees or groups at different organizational levels. (296)

Employee assistance program (EAP).

 A company-sponsored program that helps employees cope with personal problems that are interfering with their job performance. (415)

Employee attitude survey.

 A formal anonymous survey designed to measure employee likes and dislikes of various aspects of their jobs. (413)

Employee benefits or indirect compensation.

 Group membership rewards that provide security for employees and their family members. (361)

Employee feedback program.

 A program designed to improve employee communications by giving employees a voice in policy formulation and making sure that they receive due process on any complaints they lodge against managers. (413)

Employee recognition program.

 A program that rewards employees for their ideas and contributions. (418)

Employee relations policy.

 A policy designed to communicate management’s thinking and practices concerning employee-related matters and prevent problems in the workplace from becoming serious. (400)

Employee relations representative.

 A member of the HR department who ensures that company policies are followed and consults with both supervisors and employees on specific employee relations problems. (400)

Employee Retirement Income Security Act (ERISA).

 A federal law established in 1974 to protect employees’ retirement benefits from mismanagement. (380)

Employee separation.

 The termination of an employee’s membership in an organization. (182)

Employee stock ownership plan (ESOP).

 A corporatewide pay-for-performance plan that rewards employees with company stock either as an outright grant or at a favorable price that may be below market value. (341)

Employment at will.

 A common-law rule used by employers to assert their right to end an employment relationship with an employee at any time for any cause. (434)

Employment contract.

 A contract that spells out explicitly the terms of the employment relationship for both employee and employer. (430)

Empowerment.

 Providing workers with the skills and authority to make decisions that would traditionally be made by managers. (19)

Enterprise union.

 A labor union that represents workers in only one large company rather than in a particular industry; used in Japan. (475)

Environmental challenges.

 Forces external to a firm that affect the firm’s performance but are beyond the control of management. (2)

Equal Employment Opportunity Commission (EEOC).

 The federal agency responsible for enforcing EEO laws. (99)

Equal Pay Act (1963).

 The law that requires the same pay for men and women who do the same job in the same organization. (87)

Essential functions.

 Job duties that each person in a certain position must do or must be able to do to be an effective employee. (97)

Ethnocentric approach.

 An approach to managing international operations in which top management and other key positions are filled by people from the home country. (536)

Executive order.

 A presidential directive that has the force of law. In HR context, a policy with which all federal agencies and organizations doing business with the federal government must comply. (95)

Exempt employee.

 An employee who is not covered by the provisions of the Fair Labor Standards Act. Most professional, administrative, executive, and outside sales jobs fall into this category. (313)

Exit interview.

 An employee’s final interview following separation. The purpose of the interview is to find out the reasons why the employee is leaving (if the separation is voluntary) or to provide counseling and/or assistance in finding a new job. (185)

Expatriate.

 A citizen of one country living and working in another country. (532)

Expectancy theory.

 A theory of behavior holding that people tend to do those things that are rewarded. (335)

Extended leave.

 A benefit that allows an employee to take a long-term leave from the office, while retaining benefits and the guarantee of a comparable job on return. (140)

External equity.

 The perceived fairness in pay relative to what other employers are paying for the same type of labor. (289)

Fair employment.

 The goal of EEO legislation and regulation: a situation in which employment decisions are not affected by illegal discrimination. (85)

Fair Labor Standards Act (FLSA).

 The fundamental compensation law in the United States. Requires employers to record earnings and hours worked by all covered employees and to report this information to the U.S. Department of Labor. Defines two categories of employees: exempt and nonexempt. (312)

Family and Medical Leave Act (FMLA) of 1993.

 A federal law that requires employers to provide up to 12 weeks’ unpaid leave to eligible employees for the birth or adoption of a child; to care for a sick parent, child, or spouse; or to take care of health problems that interfere with job performance. (372)

Flat organizational structure.

 An organizational structure that has only a few levels of management and emphasizes decentralization. (46)

Flexible or cafeteria benefits program.

 A benefits program that allows employees to select the benefits they need most from a menu of choices. (363)

Flexible work hours.

 A work arrangement that gives employees control over the starting and ending times of their daily work schedules. (72)

Flextime.

 Time during which employees can choose not to be at work. Part of a flexible work hours arrangement. (72)

Four-fifths rule.

 An EEOC provision for establishing a prima facie case that an HR practice is discriminatory and has an adverse impact. A practice has an adverse impact if the hiring rate of a protected class is less than four-fifths the hiring rate of a majority group. (89)

Frame-of-reference (FOR) training.

 A type of training that presents supervisors with fictitious examples of worker performance (either in writing or on video), asks the supervisors to evaluate the workers in the examples, and then tells them what their ratings should have been. (216)

Gainsharing.

 A plantwide pay-for-performance plan in which a portion of the company’s cost savings is returned to workers, usually in the form of a lump-sum bonus. (340)

Genetic testing.

 A form of biological testing that identifies employees who are genetically susceptible to illness or disability. (517)

Geocentric approach.

 An approach to managing international operations in which nationality is downplayed and the firm actively searches on a worldwide or regional basis for the best people to fill key positions. (536)

Glass ceiling.

 The intangible barrier in an organization that prevents female and minority employees from rising to positions above a certain level. (126)

Grievance procedure.

 A systematic, step-by-step process designed to settle disputes regarding the interpretation of a labor contract. (489)

Health Insurance Portability and Accountability Act (HIPAA).

 A federal law that protects an employee’s ability to transfer between health insurance plans without a gap in coverage due to a preexisting condition. (374)

Health maintenance organization (HMO).

 A health care plan that provides comprehensive medical services for employees and their families at a flat annual fee. (376)

Health savings account (HSA).

 A qualified health plan with a high deductible that lets individuals save money for health care expenses with pretax dollars and lets unspent money accumulate as a tax-free stash of money. (378)

High-deductible health plan (HDHP).

 A way that employers can manage the costs of employee health care plans. The high deductible requires that employees pay for the first few thousand dollars of medical costs each year, which means that the plan pays only when employees have major medical problems. (379)

Hiring freeze.

 An employment policy designed to reduce the company’s workforce by not hiring any new employees into the company. (192)

Hostile work environment sexual harassment.

 Harassment that occurs when the behavior of anyone in the work setting is sexual in nature and is perceived by an employee as offensive and undesirable. (90)

Hot-stove rule.

 A model of disciplinary action: Discipline should be immediate, provide ample warning, and be consistently applied to all. (448)

HR audit.

 A periodic review of the effectiveness with which a company uses its human resources. Frequently includes an evaluation of the HR department itself. (35)

Human resource information system (HRIS).

 A system used to collect, record, store, analyze, and retrieve data concerning an organization’s human resources. (74)

Human resource planning (HRP).

 The process an organization uses to ensure that it has the right amount and the right kind of people to deliver a particular level of output or services in the future. (150)

Human resources (HR).

 People who work in an organization. Also called personnel. (2)

Human resource strategy.

 A firm’s deliberate use of human resources to help it gain or maintain an edge against its competitors in the marketplace. The grand plan or general approach an organization adopts to ensure that it effectively uses its people to accomplish its mission. (2)

Human resource tactic.

 A particular HR policy or program that helps to advance a firm’s strategic goal. (2)

Individual challenges.

 Human resource issues that address the decisions most pertinent to individual employees. (17)

Individual equity.

 The perceived fairness of individual pay decisions. (290)

Individuals with disabilities.

 Persons who have a physical or mental impairment that substantially affects one or more major life activities. (96)

Informal communications.

 Also called “the grapevine.” Information exchanges without a planned agenda that occur informally among employees. (411)

Information dissemination.

 The process of making information available to decision makers, wherever they are located. (404)

Insubordination.

 Either refusal to obey a direct order from a supervisor or verbal abuse of a supervisor. (452)

Integrative bargaining.

 Bargaining that focuses on convincing the other party that the benefits of agreeing with the proposed terms would be very high. (452)

Internal equity.

 The perceived fairness of the pay structure within a firm. (289)

Internal Revenue Code (IRC).

 The code of tax laws that affects how much of their earnings employees can keep and how benefits are treated for tax purposes. (315)

Involuntary separation.

 A separation that occurs when an employer decides to terminate its relationship with an employee due to (1) economic necessity or (2) a poor fit between the employee and the organization. (187)

Job aids.

 External sources of information, such as pamphlets and reference guides, that workers can access quickly when they need help in making a decision or performing a specific task. (248)

Job analysis.

 The systematic process of collecting information used to make decisions about jobs. Job analysis identifies the tasks, duties, and responsibilities of a particular job. (57)

Job banding.

 The practice of replacing narrowly defined job descriptions with broader categories (bands) of related jobs. (309)

Job description.

 A written document that identifies, defines, and describes a job in terms of its duties, responsibilities, working conditions, and specifications. (63)

Job design.

 The process of organizing work into the tasks required to perform a specific job. (55)

Job enlargement.

 The process of expanding a job’s duties. (56)

Job enrichment.

 The process of putting specialized tasks back together so that one person is responsible for producing a whole product or an entire service. (56)

Job evaluation.

 The process of evaluating the relative value or contribution of different jobs to an organization. (302)

Job hierarchy.

 A listing of jobs in order of their importance to the organization, from highest to lowest. (305)

Job-posting system.

 A system in which an organization announces job openings to all employees on a bulletin board, in a company newsletter, or through a phone recording or computer system. (271)

Job rotation.

 The process of rotating workers among different narrowly defined tasks without disrupting the flow of work. (56)

Job sharing.

 A work arrangement in which two or more employees divide a job’s responsibilities, hours, and benefits among themselves. (68)

Job specifications.

 The worker characteristics needed to perform a job successfully. (66)

Joint venture.

 In international business, a foreign branch owned partly by the home office and partly by an entity in the host country (a company, a consortium of firms, an individual, or the government). (536)

Knowledge worker.

 A worker who transforms information into a product or service. (403)

Knowledge, skills, and abilities (KSAs).

 The knowledge, skills, and abilities needed to perform a job successfully. (59)

Knowledge-based pay or skill-based pay.

 A pay system in which employees are paid on the basis of the jobs they can do or talents they have that can be successfully applied to a variety of tasks and situations. (294)

Labor contract.

 A union contract that spells out the conditions of employment and work rules that affect employees in the unit represented by the union. (470)

Labor demand.

 How many workers the organization will need in the future. (150)

Labor relations specialist.

 Someone, often a member of the HR department, who is knowledgeable about labor relations and can represent management’s interests to a union. (466)

Labor relations strategy.

 A company’s overall plan for dealing with labor unions. (476)

Labor supply.

 The availability of workers with the required skills to meet the firm’s labor demand. (150)

Landrum-Griffin Act (1959).

 A law designed to protect union members and their participation in union affairs. (469)

Line employee.

 An employee involved directly in producing the company’s good(s) or delivering the service(s). (2)

Literacy.

 The mastery of basic skills (reading, writing, arithmetic, and their uses in problem solving). (251)

Lockout.

 Occurs when an employer shuts down its operations before or during a labor dispute. (488)

Management by objectives (MBO).

 A goal-directed approach to performance appraisal in which workers and their supervisors set goals together for the upcoming evaluation period. (212)

Management by walking around (MBWA).

 A technique in which managers walk around and talk to employees informally to monitor informal communications, listen to employee grievances and suggestions, and build rapport and morale. (412)

Management of diversity.

 The set of activities involved in integrating nontraditional employees (women and minorities) into the workforce and using their diversity to the firm’s competitive advantage. (120)

Management rights.

 Management’s rights to run the business and retain any profits that result. (434)

Manager.

 A person who is in charge of others and is responsible for the timely and correct execution of actions that promote his or her unit’s success. (2)

Medicare.

 A part of the Social Security program that provides health insurance coverage for people aged 65 and over. (369)

Mentoring.

 A developmentally oriented relationship between senior and junior colleagues or peers that involves advising, role modeling, sharing contacts, and giving general support. (276)

Merit pay.

 An increase in base pay, normally given once a year. (334)

Moonlighting.

 Holding a second job outside normal working hours. (442)

Motivation.

 (1) A person’s desire to do the best possible job or to exert the maximum effort to perform assigned tasks. (2) That which energizes, directs, and sustains human behavior. In HRM, a person’s desire to do the best possible job or to exert the maximum effort to perform assigned tasks. (19)

Multimedia technology.

 A form of electronic communication that integrates voice, video, and text, all of which can be encoded digitally and transported on fiber optic networks. (409)

Multinational corporation (MNC).

 A firm with assembly and production facilities in several countries and regions of the world. (532)

National Labor Relations Board (NLRB).

 The independent federal agency created by the Wagner Act to administer U.S. labor law. (467)

Negligent hiring.

 Hiring an employee with a history of violent or illegal behavior without conducting background checks or taking proper precautions. (515)

Nepotism.

 The practice of favoring relatives over others in the workplace. (404)

Nonexempt employee.

 An employee who is covered by the provisions of the Fair Labor Standards Act. (313)

Occupational Safety and Health Act of 1970 (OSHA).

 A federal law that requires employers to provide a safe and healthy work environment, comply with specific occupational safety and health standards, and keep records of occupational injuries and illnesses. (504)

Office of Federal Contract Compliance Programs (OFCCP).

 The federal agency responsible for monitoring and enforcing the laws and executive orders that apply to the federal government and its contractors. (100)

Old boys’ network.

 An informal social and business network of high-level male executives that typically excludes women and minorities. Access to the old boys’ network is often an important factor in career advancement. (136)

Organizational challenges.

 Concerns or problems internal to a firm; often a by-product of environmental forces. (10)

Organizational culture.

 The basic assumptions and beliefs shared by members of an organization. These beliefs operate unconsciously and define in a basic taken-for-granted fashion an organization’s view of itself and its environment. (13)

Organizational structure.

 The formal or informal relationships between people in an organization. (45)

Orientation.

 The process of informing new employees about what is expected of them in the job and helping them cope with the stresses of transition. (254)

Outcome appraisal instrument.

 An appraisal tool that asks managers to assess the results achieved by workers. (212)

Outplacement assistance.

 A program in which companies help their departing employees find jobs more rapidly by providing them with training in job-search skills. (185)

Outsourcing.

 Subcontracting work to an outside company that specializes in and is more efficient at doing that kind of work. (16)

Patient and Affordable Care Act (PACA).

 A federal law passed in 2010 that guarantees that affordable health care is available to people in the United States. (375)

Pay grades.

 Groups of jobs that are paid within the same pay range. (300)

Pay incentive.

 A program designed to reward employees for good performance. (287)

Pay policy.

 A firm’s decision to pay above, below, or at the market rate for its jobs. (308)

Pay-for-performance system or incentive system.

 A system that rewards employees on the assumptions that (1) individual employees and work teams differ in how much they contribute to the firm; (2) the firm’s overall performance depends to a large degree on the performance of individuals and groups within the firm; and (3) to attract, retain, and motivate high performers and to be fair to all employees, the firm needs to reward employees on the basis of their relative performance. (325)

Peer review.

 A performance appraisal system in which workers at the same level in the organization rate one another. (215)

Peer trainers.

 High-performing workers who double as internal on-the-job trainers. (249)

Pension Benefit Guaranty Corporation (PBGC).

 The government agency that provides plan termination insurance to employers with defined benefit retirement programs. (380)

Performance appraisal.

 The identification, measurement, and management of human performance in organizations. (205)

Perquisites (“perks”).

 Noncash incentives given to a firm’s executives. (348)

Personnel file.

 A file maintained for each employee, containing the documentation of critical HR-related information, such as performance appraisals, salary history, disciplinary actions, and career milestones. (432)

Piece-rate system.

 A compensation system in which employees are paid per unit produced. (331)

Polycentric approach.

 An approach to managing international operations in which subsidiaries are managed and staffed by personnel from the host country. (536)

Portable benefits.

 Employee benefits, usually retirement funds, that stay with the employee as he or she moves from one company to another. (380)

Positive discipline.

 A discipline procedure that encourages employees to monitor their own behaviors and assume responsibility for their actions. (446)

Predictive validity.

 Extent to which selection scores correlate with performance scores, when performance is measured later in time. (164)

Preexisting condition.

 A medical condition treated while an employee was covered under a former employer’s health plan and requires treatment under a new employer’s different health plan. (374)

Preferred provider organization (PPO).

 A health care plan in which an employer or insurance company establishes a network of doctors and hospitals to provide a broad set of medical services for a flat fee per participant. In return for the lower fee, the doctors and hospitals who join the PPO network expect to receive a larger volume of patients. (377)

Premium.

 The money paid to an insurance company for coverage. (376)

Privacy Act of 1974.

 Guarantees the privacy of personnel files for employees of the U.S. federal government. (432)

Problem-solving team.

 A team consisting of volunteers from a unit or department who meet one or two hours per week to discuss quality improvement, cost reduction, or improvement in the work environment. (51)

Productivity.

 A measure of how much value individual employees add to the goods or services that the organization produces. (19)

Profit sharing.

 A corporatewide pay-for-performance plan that uses a formula to allocate a portion of declared profits to employees. Typically, profit distributions under a profit-sharing plan are used to fund employees’ retirement plans. (341)

Progressive discipline.

 A series of management interventions that gives employees opportunities to correct undesirable behaviors before being discharged. (445)

Promotability forecast.

 A career development activity in which managers make decisions regarding the advancement potential of subordinates. (269)

Protected class.

 A group of people who suffered discrimination in the past and who are given special protection by the judicial system. (87)

Punitive damages.

 Fines awarded to a plaintiff in order to punish the defendant. (94)

Quality of work life.

 A measure of how safe and satisfied employees feel with their jobs. (19)

Quid pro quo sexual harassment.

 Harassment that occurs when sexual activity is required in return for getting or keeping a job or job-related benefit. (90)

Quotas.

 Employer adjustments of hiring decisions to ensure that a certain number of people from a certain protected class are hired. (94)

Railway Labor Act.

 A law designed to regulate labor relations in the transportation industry. (469)

Rater error.

 An error in performance appraisals that reflects consistent biases on the part of the rater. (216)

Realistic job preview (RJP).

 Realistic information about the demands of the job, the organization’s expectations of the job holder, and the work environment. (255)

Reasonable accommodation.

 An action taken to accommodate the known disabilities of applicants or employees so that disabled persons enjoy equal employment opportunity. (98)

Recruitment.

 The process of generating a pool of qualified candidates for a particular job; the first step in the hiring process. (155)

Relative judgment.

 An appraisal format that asks supervisors to compare an employee’s performance to the performance of other employees doing the same job. (208)

Reliability.

 Consistency of measurement, usually across time but also across judges. (163)

Reverse discrimination.

 Discrimination against a nonprotected-class member resulting from attempts to recruit and hire members of protected classes. (102)

Right.

 The ability to engage in conduct that is protected by law or social sanction, free from interference by another party. (429)

Rightsizing.

 The process of reorganizing a company’s employees to improve their efficiency. (189)

Right-to-work law.

 A state law that makes it illegal within that state for a union to include a union shop clause in its contract. (468)

Selection.

 The process of making a “hire” or “no hire” decision regarding each applicant for a job; the second step in the hiring process. (155)

Self-managed team (SMT).

 A team responsible for producing an entire product, a component, or an ongoing service. (59)

Self-review.

 A performance appraisal system in which workers rate themselves. (215)

Senior mentoring program.

 A support program in which senior managers identify promising women and minority employees and play an important role in nurturing their career progress. (141)

Seniority.

 The length of time a person works for an employer. (491)

Simulation.

 A device or situation that replicates job demands at an off-the-job site. (246)

Situational factors or system factors.

 A wide array of organizational characteristics that can positively or negatively influence performance. (224)

Skills inventory.

 A company-maintained record of employees’ abilities, skills, knowledge, and education. (272)

Social networking.

 Interacting over the Internet and sharing text messages, photos, and video clips. (408)

Social Security.

 A government program that provides income for retirees, the disabled, and survivors of deceased workers, and health care for the aged through the Medicare program. (367)

Socialization.

 The process of orienting new employees to the organization and the unit in which they will be working; the third step in the hiring process. (155)

Special-purpose team.

 A team or task force consisting of workers who span functional or organizational boundaries and whose purpose is to examine complex issues. (51)

Staff employee.

 An employee who supports line employees. (2)

Statutory right.

 A right protected by specific laws. (430)

Strategic HR choices.

 The options available to a firm in designing its human resources system. (24)

Strategic human resource (HR) planning.

 The process of formulating HR strategies and establishing programs or tactics to implement them. (21)

Structured interview.

 Job interview based on a thorough job analysis, applying job-related questions with predetermined answers consistently across all interviews for a job. (167)

Subordinate review.

 A performance appraisal system in which workers review their supervisors. (215)

Succession planning.

 A career development activity that focuses on preparing people to fill executive positions. (269)

Supplemental unemployment benefits (SUB).

 Benefits given by a company to laid-off employees over and above state unemployment benefits. (371)

Support group.

 A group established by an employer to provide a nurturing climate for employees who would otherwise feel isolated or alienated. (139)

Taft-Hartley Act (1947).

 A federal law designed to limit some of the power acquired by unions under the Wagner Act by adjusting the regulation of labor–management relations to ensure a level playing field for both parties. (468)

Team.

 A small number of people with complementary skills who work toward common goals for which they hold themselves mutually accountable. (50)

Telecommuting.

 A work arrangement that allows employees to work in their homes full-time, maintaining their connection to the office through phone, fax, and computer. (73)

Teleconferencing.

 The use of audio and video equipment to allow people to participate in meetings even when they are a great distance away from the conference location or one another. (466)

Title VII (Civil Rights Act of 1964).

 Section of the Civil Rights Act of 1964 that applies to employment decisions; mandates that employment decisions not be based on race, color, religion, sex, or national origin. (87)

360° feedback.

 The combination of peer, subordinate, and self-review. (215)

Total compensation.

 The package of quantifiable rewards an employee receives for his or her labors. Includes three components: base compensation, pay incentives, and indirect compensation/benefits. (287)

Total quality management (TQM).

 An organization-wide approach to improving the quality of all the processes that lead to a final product or service. (11)

Training.

 The process of providing employees with specific skills or helping them correct deficiencies in their performance. (237)

Trait appraisal instrument.

 An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring. (210)

Transnational corporation.

 A firm with operations in many countries and highly decentralized operations. The firm owes little allegiance to its country of origin and has weak ties to any given country. (533)

Turnover rate.

 The rate of employee separations in an organization. (182)

Unemployment insurance.

 A program established by the Social Security Act of 1935 to provide temporary income for people during periods of involuntary unemployment. (370)

Union.

 An organization that represents employees’ interests to management on such issues as wages, work hours, and working conditions. (465)

Union acceptance strategy.

 A labor relations strategy in which management chooses to view the union as its employees’ legitimate representative and accepts collective bargaining as an appropriate mechanism for establishing workplace rules. (476)

Union avoidance strategy.

 A labor relations strategy in which management tries to prevent its employees from joining a union, either by removing the incentive to unionize or by using hardball tactics. (478)

Union shop clause.

 A union arrangement that requires new employees to join the union 30 to 60 days after their date of hire. (468)

Union steward.

 An advocate dedicated to representing an employee’s case to management in a grievance procedure. (489)

Union substitution/proactive human resource management.

 A union avoidance strategy in which management becomes so responsive to employees’ needs that it removes the incentives for unionization. (478)

Union suppression.

 A union avoidance strategy in which management uses hardball tactics to prevent a union from organizing its workers or to get rid of a union. (478)

Universal concept of management.

 The management concept holding that all management practices should be standardized. (125)

Upward communication.

 Communication that allows employees at lower levels to communicate their ideas and feelings to higher-level decision makers. (403)

Validity.

 The extent to which the technique measures the intended knowledge, skill, or ability. In the selection context, it is the extent to which scores on a test or interview correspond to actual job performance. (163)

Vesting.

 A guarantee that accrued retirement benefits will be given to retirement plan participants when they retire or leave the employer. (380)

Virtual reality (VR).

 The use of a number of technologies to replicate the entire real-life working environment in real time. (247)

Virtual team.

 A team that relies on interactive technology to work together when separated by physical distance. (52)

Voice mail.

 A form of electronic communication that allows the sender to leave a detailed voice message for a receiver. (406)

Voluntary separation.

 A separation that occurs when an employee decides, for personal or professional reasons, to end the relationship with the employer. (186)

Wagner Act/National Labor Relations Act (1935).

 A federal law designed to protect employees’ rights to form and join unions and to engage in such activities as strikes, picketing, and collective bargaining. (467)

Wellness program.

 A company-sponsored program that focuses on preventing health problems in employees. (521)

Whistle-blowing.

 Employee disclosure of an employer’s illegal, immoral, or illegitimate practices to persons or organizations that may be able to take corrective action. (440)

Wholly owned subsidiary.

 In international business, a foreign branch owned fully by the home office. (536)

Wildcat strike.

 A spontaneous work stoppage that happens under a valid contract and is usually not supported by union leadership. (487)

Work flow.

 The way work is organized to meet the organization’s production or service goals. (45)

Work-flow analysis.

 The process of examining how work creates or adds value to the ongoing processes in a business. (49)

Work rules.

 Any terms or conditions of employment, including pay, work breaks and lunch periods, vacation, work assignments, and grievance procedures. (470)

Work–life balance.

 The balance between an individual’s work and personal life. (81)

Worker Adjustment and Retraining Notification Act (WARN).

 A federal law requiring U.S. employers with 100 or more employees to give 60 days’ advance notice to employees who will be laid off as a result of a plant closing or a mass separation of 50 or more workers. (193)

Workers’ compensation.

 A legally required benefit that provides medical care, income continuation, and rehabilitation expenses for people who sustain job-related injuries or sickness. Also provides income to the survivors of an employee whose death is job related. (369)

Workplace bullying.

 A form of harassment that consists of a persistent pattern of offensive, abusive, intimidating, malicious, or insulting behavior focused at a target employee. (452)

Works council.

 A committee composed of both worker representatives and managers who have responsibility for governing the workplace; used in Germany. (475)

Wrongful discharge.

 Termination of an employee for reasons that are either illegal or inappropriate. (431)

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