GLOSSARY  

This glossary is composed of terms you will likely encounter as you move through your career in human resources. Many of the terms you may already know. Some of them like andragogy, Delphi technique, histogram, or pedagogy may be new to you. Yet each of the terms here can be important to HR professionals.

Here is a suggestion. As you work through the book and discover a term that is new to you, pause long enough to flip to the glossary and look it up. Knowing how a word or phrase is used can be helpful in understanding its meaning. It won’t be long before you are using these terms in your everyday encounters.

80% rule The measurement known as a “rule of thumb” used to test for disparity in treatment during any type of employment selection decisions; also identified as adverse impact.

401(k) plan A salary reduction retirement plan for employees. Contributions reduce one’s taxable income, and investment income accumulates tax-free until the money is withdrawn.

ADDIE A five-step instructional design process consisting of assess, design, development, implementation, and evaluation.

administrative exemption Exemption from overtime payment based on several qualifying factors, including minimum pay requirement, and exercise of discretion and independent judgment performing work directly related to management of general business operations.

administrative services–only plan Health insurance programs in which all of the risk is assumed by the employer.

adult learning The process of learning associated with people who are older than 18 to 25 and generally referred to as nontraditional learners; also identified as andragogy.

adverse impact A legal category of illegal employment discrimination involving groups of workers and statistical proofs.

adverse selection When bad-risk employees choose a benefit and good-risk employees do not under a flexible benefits plan.

adverse treatment A legal category of illegal employment discrimination involving individual treatment or “pattern and practice” treatment of groups of workers.

affirmative action Use of special outreach and recruiting programs to assure participation of qualified job candidates, vendors, or students in employment, employer purchasing programs, or college admissions.

aggregate stop-loss coverage The health plan is protected against the risk of large total claims from all participants during the plan year.

aging A technique used to make outdated data current.

alternative dispute resolution (ADR) A variety of processes that help parties resolve disputes without a trial. Processes include mediation, arbitration, neutral evaluation, and collaborative law.

analytics The discovery and communication of meaningful patterns in data.

andragogy The study of how adults learn.

applicant tracking system A method for retention of detailed information about job applicants, either manual or computer based.

apprenticeship A system of training a person in a trade or profession with on-the-job training.

arbitration The process of submitting a labor dispute to a third party for resolution. The third party is called an arbitrator. Both parties agree beforehand to accept the arbitrator’s decision.

assessment centers A method for assessing aptitude and performance applied to participants using various aptitude diagnostic processes in order to obtain information on abilities or potential. Participants are measured against a norm group of successful people in the same job category.

assets The properties an organization owns, tangible and intangible.

at-will employment A legal employment relationship in which an employee may quit at any time for any reason and may be dismissed at any time for any reason. No “just cause” is required. This relationship is limited by prohibitions on employer actions related to public interest.

auditory learners A learning style in which a person learns through listening.

automatic step rate Division of the pay range into several steps that can be advanced by an employee when time-in-job has met the step requirement.

average Arithmetic average or mean arrived at by giving equal weight to every participant’s actual pay; also, a number that is arrived at by adding quantities together and dividing the total by the number of quantities.

back pay Payment of salary or wages that should have been paid initially, usually as a form of remedy for a complaint of discrimination.

background checks Investigation of an individual’s personal history including employment, educational, criminal, and financial.

balance sheet A statement of a business’s financial position.

balanced scorecard A big-picture view of an organization’s performance as measured against goals in areas such as finance, customer base, processes, learning, human capital, and growth.

BARS Behaviorally anchored rating scales.

base-pay systems Single or flat-rate systems, time-based step rate systems, performance-based merit pay systems, productivity-based systems, and person-based systems.

behavioral interview A technique that queries job applicants to describe their specific behaviors or actions they’ve taken in particular past situations as a basis for determining the individual’s demonstrated skill sets.

bell curve Used to describe the mathematical concept called “normal distribution.”

benefits-needs assessment or analysis Collection and analysis of data to determine whether the employer’s benefits programs actually meet their objectives.

bereavement leave Paid or unpaid time off to attend the funeral of a relative.

bias Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.

“Big Data” Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

bill A proposal presented to a legislative body in the U.S. government to enact a law.

blended learning A formal education program in which a student learns at least in part through delivery of content and instruction via digital and online media with some element of student control over time, place, path, or pace.

blue ocean strategies The pursuit of creating a new market space where there are no competitors.

boycott A protest action that encourages the public to withhold business from an employer that is targeted by a union.

brain drain The departure of educated or professional people from one country, economic sector, or field for another, usually for better pay or living conditions.

branding The process of conveying key organizational values.

broadbanding Combination of several pay grades or job classifications with narrow range spreads and a single band into a wider spread.

budgeting Forecasting income and expenses by category and subcategory.

business acumen Knowledge and understanding of the financial, accounting, marketing, and operational functions of an organization.

business case An argument, usually documented, that is intended to convince a decision maker to approve some kind of action.

business concepts An idea for producing goods or services that identifies the benefits that can be achieved for prospective customers or clients.

business continuity The ability to continue conducting business following an interruption of some sort.

business ethics Generally accepted norms and expectations for business management behavior.

business intelligence (BI) An umbrella term that refers to a variety of software applications used to analyze an organization’s raw data. BI as a discipline is made up of several related activities, including data mining, online analytical processing, querying, and reporting.

cafeteria benefit plans Employees who choose the benefits they desire subject to certain limitations and total cost constraints.

career development A concept that individuals expand their knowledge, skills, and abilities as they progress through their careers.

career management Planning, preparing, and implementing employee career paths.

career planning Activities and actions that individuals follow for a specific career path.

case studies Simulation of real-world problems that calls for an application of skill or knowledge to resolve.

cash awards Rewards for exceeding performance goals, a formula-based bonus calculated on a percentage of profits or other preestablished measurement.

cash flow statement A mandatory part of a company’s financial reports since 1987; records the amounts of cash and cash equivalents entering and leaving a company.

cause-and-effect diagram Also called a fishbone diagram and Ishikawa diagram, identifies possible causes for an effect or problem.

center of excellence (COE) Refers to a team, a shared facility, or an entity that provides leadership, evangelization, best practices, research, support, and/or training for a focus area.

central tendency error When managers and interviewers rate all or most of the employees or interviewees as average.

certification of a union Formal recognition of a union as the exclusive bargaining representative of a group of employees.

chain of command The order in which authority and power in an organization is wielded and delegated from top management to every employee at every level of the organization.

change management Transitioning individuals, groups, teams, and institutions to a desired future state.

change programs Strategic approach to organizing and implementing specific changes (e.g., policies or procedures) within an organization.

childcare services Programs designed to help working parents deal with the ongoing needs of preschool or school-aged children.

civil law One of the two major legal systems of the modern Western world (the other is common law).

clawback A provision of the Dodd-Frank Act that requires executives to return ill-gotten bonuses.

cloud computing An application software that is on central servers and accessed or operated using Internet-enabled devices.

code of conduct An employment policy listing personal behaviors that are acceptable and required in the workplace.

code of ethics Principles of conduct that guide behavior expectations and decisions.

cognitive learning The refining of knowledge by adding new information and thereby expanding prior knowledge.

collective bargaining A formal process of negotiating working conditions with an employer for a work group represented by a union.

collective bargaining agreements Union contracts for a represented group of employees and designated employers. This is a term usually used in the private sector.

combination step-rate and performance Employees receive step-rate increases up to the established job rate. Above this level, increases are granted only for superior job performance.

common law Law developed over time from the rulings of judges as opposed to law embodied in statutes passed by legislatures (statutory law) or law embodied in a written constitution (constitutional law).

communication skills Verbal and written abilities that enable an individual to transmit and receive messages.

commuter assistance Employer assistance programs designed to help defray public transportation costs associated with going to and from work.

comparable worth A pay discrimination theory where workers in a job classification dominated by one sex are paid less than workers in a classification dominated by the opposite sex, where both job classifications are of equal value or worth to the employer or the underpaid classification is of greater value to the employer.

compa-ratio An indicator of how wages match, lead, or lag the midpoint of a given pay range computed by dividing the worker’s pay rate by the midpoint of the pay range.

compensatory damages A monetary equivalent awarded for pain, suffering, and emotional distress as a result of a legal proceeding.

competencies Measurable or observable knowledge, skills, abilities, and behaviors critical to successful job performance.

competency-based interview An interview where the style of question forces candidates to give situational examples of times in the past when they have performed particular tasks or achieved particular outcomes using certain skills.

competency-based system Pay is linked to the level at which an employee can perform in a recognized competency.

compliance evaluation Formal audit by the Office of Federal Contract Compliance Programs (OFCCP) of a federal contractor subject to OFCCP oversight.

compliance program Systematic procedures instituted by an organization to ensure that the provisions of the regulations imposed by a government agency are being met.

computer employee exemption Exemption from overtime payment based on several qualifying factors, including minimum pay requirement, job duties involving computer programming, software analysis, or software engineering.

computer-based testing (CBT) Testing delivery method via computer, in person, at a testing center.

conciliation A binding written agreement between an employer and the EEOC or the OFCCP that details specific employer commitments to resolve the alleged violations set forth in the agreement.

conflict of interest A situation that has the potential to undermine the impartiality of a person because of the possibility of a clash between the person’s self-interest and professional interest or public interest.

construct validity The degree to which a test measures what it claims to measure.

constructive discipline Discipline that imposes increasingly severe consequences and penalties. This is also called progressive discipline.

consumer price index The average of prices paid by consumers for goods and services.

content validity The extent a test measures all aspects of a given job.

contingency plan A coordinated set of steps to be taken in an emergency or disaster.

contingent workers Workers who do not have an ongoing expectation of full-time employment such as part-time workers, independent contractors, temporary workers, consultants, leased employees, and subcontractors.

contract labor Work performed under the terms of a legally enforceable contract.

contract negotiation The process of give and take related generally to content details and provisions of an employment contract such as a union agreement or memorandum of understanding (MOU).

contrast effect An error made in interviewing when strong candidates are interviewed after weak candidates, causing them to appear overly qualified because of the contrast.

contrast error In interview or performance appraisal process, error caused by the effect of previously interviewed or appraised applicants on the interviewer.

control chart A chart that illustrates variation from normal in a situation over time.

controlling A management function involving monitoring the workplace and making adjustments to activities as required.

cooperative learning A strategy in which a small group of people work on solving a problem or completing a task in a way that each person’s success is dependent on the group’s success.

copyright A legal form of protection for authors of original works.

core competency A unique capability that is essential or fundamental to a particular job.

corporate citizenship A self-regulatory mechanism where an organization monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.

corporate governance The mechanisms, processes, and relations by which corporations are controlled and directed.

corporate responsibility (CR) Strategic goals achieved through local community relationships around social needs and issues.

cost-benefit analysis (CBA) A business practice in which the costs and benefits of a particular situation are analyzed as part of the decision process.

cost containment Efforts or activities designed to reduce or slow down the cost expenses and increases.

cost of living adjustment Pay increase given to all employees on the basis of market pressure, usually measured against the consumer price index (CPI).

cost per hire The measurement of dollar expense required to hire each new employee.

credit reports Reports obtained from one of the major credit reporting agencies that explains the individual’s personal rating based on financial history.

criterion-related validity Empirical studies producing data that show the selection procedure(s) are predictive or significantly related with important elements of job performance.

critical path math (CPM) A sequence of activities in a project plan that must be completed on time for the project to be completed by the due date.

cross-functional work team A group of people from different functions working together to generate production or problem resolution.

cultural blending The blending of different cultural influences in the workforce.

cultural noise In interview or performance appraisal process, error caused by the effect of previously interviewed or appraised applicants on the interviewer. It results in a conscious or subconscious comparison of one applicant with another and tends to exaggerate the differences between the two.

cultural relativism The principle that an individual human’s beliefs and activities should be understood by others in terms of that individual’s own culture.

culture Societal forces affecting the values, beliefs, and actions of a group of people.

dashboards A data visualization tool that displays the current status of metrics and key performance indicators (KPIs).

database Systematically organized or structured repository of indexed information (usually as a group of linked data files) that allows easy retrieval, updating, analysis, and output of data.

database management system (DBMS) Computer program that catalogs, indexes, locates, retrieves, and stores data; maintains its integrity; and outputs it in the form desired by a user.

deauthorization of a union Removal of “union security” from the contract. The union remains as the exclusive bargaining representative, and the collective bargaining agreement remains in effect, but employees are not forced to be members or pay dues to the union.

decertification of a union Removal of a union as the exclusive bargaining representative of the employees.

defamation Publication of something about an individual that the writer knows is untrue.

defined benefit plan A pension plan that provides retirement income to retirees based on a formula that usually combines years of service and an average annual income for a set number of years.

defined contribution plan An individual pension fund created for each employee into which the company invests a specified amount of money each year until the employee retires.

Delphi technique A systematic forecasting method that involves structured interaction among a group of experts on a subject. The Delphi technique typically includes at least two rounds of experts answering questions and giving justification for their answer.

demand analysis Estimation of what customers, clients, or patrons will want in the future.

demonstration Showing students how something is done.

dental plans Medical insurance programs that cover some or all of the cost of dental services for subscribers.

departmentalization Manner or practice in which related individual tasks and their allocation to work groups is combined to form a specialized functional area that is distinct from other functional areas in an organization.

developmental activities The part of human resource management that specifically deals with training and development of employees.

differential pay An addition to base pay that results from special job circumstances such as shift assignment, commute distance required, temporary responsibility assignments, and similar “extras.”

differential piece rate system Employee receives one rate of pay up to the production standard and a higher rate of pay when the standard is exceeded.

dilemma reconciliation Process of seeking solutions to issues involving cultural differences.

direct compensation Base pay, commissions, bonuses, merit pay, piece rate, differential pay, cash award, profit sharing, or gainsharing.

directing Managing or controlling people to willingly do what is wanted or needed.

disability Medically determinable impairment of body or mind that restricts, or causes loss of, a person’s functional ability to carry on his or her normal activities.

disaster recovery plans A set of procedures used to protect and recover a business from a natural or other disaster that has impacted the organization or employer.

discipline Forms of punishment to assure obedience with policies.

disparate impact Adverse effect of a practice or standard that is neutral and nondiscriminatory in its intention but, nonetheless, disproportionately affects individuals having a disability or belonging to a particular group based on their age, ethnicity, race, sex, or other protected class.

disparate treatment A discrimination theory that holds an individual is treated differently from others, based on protected group membership, who are similarly situated under similar circumstances.

distance learning Learning that uses television, audio/video tapes, computers, the Internet, etc., instead of physical attendance at classes in a centralized facility.

diversity and inclusion The practice of embracing differences of race, culture, and background, ensuring that everyone is a participant in workplace processes.

diversity council Task force of various levels of employees created to work on diversity and inclusion initiatives in an organization.

diversity dimensions Framework for diversity, including personality, internal dimensions, external dimensions, and organizational dimensions.

diversity of thought Different types of cognitive processes.

diversity programs Methods for recognizing and honoring various types of employee backgrounds.

divestiture The sale of an asset.

domestic partners Two adults who have chosen to share one another’s lives in an intimate and committed relationship of mutual caring.

dual-ladder A system that enables a person to advance up either the management or technical career development ladder in an organization.

due diligence The first step in mergers and acquisitions involving a broad scope of research and investigation.

due process Conduct of legal proceedings strictly according to established principles and procedures, laid down to ensure fair trial for every accused.

duty of care The responsibility or the legal obligation of a person or organization to avoid acts or omissions (which can be reasonably foreseen) to be likely to cause harm to others.

elder care Programs to help employees deal with responsibilities for care of family elders.

e-learning Internet-based training programs that can be instructor led or self-paced.

emotional intelligence (EQ or EI) The ability of an individual to have understanding and sensitivity for another’s emotions and control over their own.

employee A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed.

employee assistance programs Employer-sponsored benefits that provide a number of services that help promote the physical, mental, and emotional wellness of individual employees who otherwise would be negatively impacted by health-related crises.

employee complaints Written or verbal statements of dissatisfaction from an employee that can involve charges of discrimination, lack of fairness, or other upset.

employee engagement Where employees are fully absorbed by and enthusiastic about their work and so take positive action to further the organization’s reputation and interests.

employee leasing Contracting with a vendor that provides qualified workers for a specific period of time at a specific pay rate.

employee life cycle A human resources model that identifies stages in employees’ careers to help guide their management and optimize associated processes.

employee relations programs Methods for management of the employer-employee relationship.

employee resource group (ERG) A group of employees who share a diversity dimension, also called an affinity group.

employee stock ownership plans Retirement plans in which the company contributes its stock, or money to buy its stock, to the plan for the benefit of the company’s employees.

employee stock purchase plans Programs allowing employees to purchase company stock at discounted prices.

employee surveys Tools used to gather opinions of employees about their employment experiences.

employee-management committees Problem-solving groups of management and nonmanagement employees focused on specific issues within the workplace.

employer sick leave Paid leave for a specified number of hours or days absent from work because of medical conditions.

employment affirmative action Programs required by federal regulations for some federal contractors to implement outreach and recruiting programs when the incumbent workforce is significantly less than computed availability.

employment at will A legal doctrine that describes an employment relationship without a contract where either party can end the relationship at any time for any reason.

employment branding A targeted strategy to manage the awareness and perceptions of employees, potential employees, and related stakeholders with regard to an organization.

employment policies Rules by which the workplace will be managed.

employment reference checks Verification of references, both personal and professional, provided by a job candidate on an application form or resume.

employment testing Any tool or step used in the employment selection process. Commonly includes written tests, interviews, résumé reviews, or skill demonstration.

encryption Scrambling sensitive information so that it becomes unreadable to everyone except the intended recipient.

enterprise resource planning (ERP) Accounting oriented, relational database based, multimodule but integrated, software system for identifying and planning the resource needs of an enterprise.

environmental footprints The effect that a person, company, activity, etc., has on the environment.

environmental scanning A process of studying the environment to pinpoint potential threats and opportunities.

e-procurement An electronic web application for transacting and purchasing supplies and services.

equal pay Providing equal compensation to jobs that have the same requirements, responsibilities, and working conditions regardless of the incumbent’s gender.

equity The difference between income and liabilities in a for-profit organization.

essential functions The fundamental, crucial job duties performed in a position.

ethical universalism A concept that implies there are fundamental ethical principles applying across cultures.

ethics Principles and values that set expectations for behaviors in an organization.

ethnocentric A policy calling for key management positions to be filled by expatriates.

evacuation plan A written procedure for moving employees out of the work location to a safer location in case of fire or natural disaster.

evaluation A constructive process to discuss strengths and weaknesses in performance.

E-Verify A government database that employers access to confirm a match between a new employee’s name and Social Security number.

executive coaching Coaching senior- and executive-level management by a third party.

executive exemption Exemption from overtime payment based on several qualifying factors, including supervision and minimum pay requirements.

executive incentives Variable compensation additives for executive employees that may include company stock and use of company facilities such as vacation timeshares. These are usually variable based on the profitability of the company.

exempt employees Employees exempt from overtime compensation by federal wage and hours guidelines.

exempt job A job with content that is exempt from the FLSA requirement to pay overtime for work exceeding 40 hours per week. Exemption can be based on several designated factors.

exit interviews Discussions with departing employees to explore how they feel about their experience as an employee and what recommendations they might have for the employer.

expatriates Employees working in a country other than that of their origin.

external coaching Coaching that is provided by a third party by a certified coach.

external equity Employees’ perception of the conditions and rewards of their employment, compared with those of the employees of other firms.

extraterritoriality Being outside the territory of the country where you are living and so not subject to its laws.

extrinsic rewards Rewards such as pay, benefits, incentive bonuses, promotions, time off, etc.

factor-comparison job evaluation A process that involves ranking each job by each compensable factor and then identifying dollar values for each level of each factor to develop an actual pay rate for the evaluated job.

fast-track program A career development program that identifies high-potential leaders for rapid career growth and organizational knowledge.

fee-for-service plans Allows health plan members to go to any qualified physician or other healthcare provider, hospital, or medical clinic and submit claims to the insurance company.

fiduciary responsibilities A legal and ethical relationship between two or more parties.

final warning Last step in the disciplinary process progression prior to removing the employee from the payroll.

first impression error Occurs when a manager or interviewer bases his or her entire assessment of an employee or applicant on the first impression that the employee or applicant made.

flat-rate or single system Each worker in the same job has the same rate of pay regardless of seniority or job performance.

flexible spending account Allows employees to set aside a preestablished amount of money on a pre-tax basis per plan year for use in paying authorized medical expenses.

floating holidays Designated paid time off that can be used at any time during the year with the employer’s approval.

flow analysis How processes operate and how flows of products, data, or other items go through these processes.

focus group A group of people brought together with a moderator where they share their point of view on a specific topic or problem. Focus groups aim at a discussion instead of on individual responses to formal questions and produce qualitative data (preferences and beliefs) that may or may not be representative of the general population.

force-field analysis Technique for identifying and analyzing the positive factors of a situation that help (“driving forces”) and negative factors that hinder (“restraining forces”) an entity in attaining its objectives.

forced choice An evaluation method in which the evaluator selects two of four statements that represents “most like” and “least like.”

formalization The extent to which work roles are structured in an organization and the activities of the employees are governed by rules and procedures.

frequency distribution Listing of grouped pay data from lowest to highest.

frequency tables Number of workers in a particular job classification and their pay data.

front pay Payment of salary or wages that could have been earned had the individual continued to work on the job in question or had the person been employed for a future period of time.

full-time Employees who work a designated number of hours per week, usually 30 to 40 hours.

fully funded plans Health insurance programs paid for entirely by the employer.

functional HR A structure where HR generalists are located within business units such as HR business partners and implement the policies and interact with management and employees in the unit and where headquarters HR staff create policies and strategy.

functional structure A common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, HR, and marketing.

functional work team A group of people from the same function working together to generate production or resolve problems.

gainsharing plans Extra pay provided to individual or groups of employees based on the gain in performance results in one measurement period over another period.

gamification Elements of game playing (e.g., point scoring, competition with others, rules of play) to other areas of activity that encourage employee engagement.

Gantt chart A project planning tool that scopes and monitors the activities of a project, the timeline, and accountability.

gap analysis Measurement of the difference between where you are and where you want to be.

gender Culturally and socially constructed difference between men and women.

general duty clause A provision in OSHA regulations that imposes a duty on all subject employers to assure a safe and healthy working environment for their employees.

general pay increases A pay increase given to all employees regardless of their job performance and not linked to market pressures.

geocentric A staffing policy wanting to place the best person in the job regardless of their country of origin.

geographic structure An organizational structure used by organizations that have locations in different geographic locations that define their regions.

geographic-based differential pay Adjustment to base pay programs based on cost of living requirements in various geographic locations where employees work.

geography Adjustments to survey numbers based on geographic differences with original survey content.

gig workers Independent workers employed for a particular performance or for defined short-term engagements.

giganomics The creation of employment through the piecing together of several projects or “gigs.”

glass ceiling A discriminatory practice that has prevented women and other protected class members from advancing to executive-level jobs.

global integration strategy (GI) A term used to denote an organization that fashions its strategy, its management, and its operations in pursuit of a new goal: the integration of production and value delivery worldwide.

global mind-set An openness to and awareness of diversity across cultures and markets.

GPHR Global Professional in Human Resources credential that is global competency based, validating the skills and knowledge of an HR professional who operates in a global marketplace.

global remittances A transfer of money from migrant workers to his or her home country.

globalization The worldwide movement toward economic, financial, trade, and communications integration.

golden parachutes Provisions in executive employment contracts that provide special payments or benefits to the executives under certain adverse conditions such as the loss of their position or otherwise adversely impacted actions by organizational changes.

governance Establishment of policies, and continuous monitoring of their proper implementation, by the members of the governing body of an organization.

graphic organizers Diagrams, maps, and drawings/webs as illustrations of learning materials.

green circle rates Pay at a rate lower than the minimum rate for the assigned pay range.

green initiatives Relationships around community and social issues.

grievance procedure Step-by-step process an employee must follow to get his or her complaint addressed satisfactorily. This is typically included in union (collective bargaining) agreements.

grievances Formal employee complaints handled by a structured resolution process usually found in a union-represented work group.

gross domestic product (GDP) The total value of goods and services produced in a country.

group incentive program Pay to all individuals in a workgroup for achievement by the entire workgroup.

group term life insurance Provides lump-sum benefit to beneficiaries on the death of an insured.

halo effect This occurs when an evaluator scores an employee high on all job categories because of performance in one area.

harassment Persecution, intimidation, pressure, or force applied to employees by supervisors, co-workers, or external individuals that interferes with the employee’s ability to perform the job assignment.

Hay method A widely used job evaluation method that addresses three compensable factors (knowledge, problem solving, and accountability) to determine how many points should be assigned to different jobs in determining compensation categories.

hazard Situation that may lead to a danger, emergency, or disaster.

hazard pay Additional pay for working under adverse conditions caused by environment or because of specific circumstances.

head count Number of individuals carried on a firm’s payroll.

health insurance purchasing cooperatives Purchasing agents for large groups of employers.

health maintenance organization Healthcare program where the insurer is paid on a per-person (capitated) basis and offers healthcare services and staff at its facilities.

health reimbursement accounts Employer-funded medical reimbursement plans.

health savings accounts A tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan.

high-context culture A culture of people that emphasizes interpersonal relationships and close connections over a long period of time.

high deductible health plans Programs that help employers lower their costs and allow employees with set-aside money to pay for out-of-pocket medical and medical-related expenses.

histogram A graphic representation of the distribution of a single type of measurement using rectangles.

horn effect This occurs when an employee receives a low rating in all areas because of one weakness influencing the evaluator.

host-country nationals (HCNs) Employees originating in the country where a remote work location is being established.

hostile environment harassment Occurs when an employee is subject to unwelcome advances, sexual innuendos, or offensive gender-related language that is sufficiently severe or pervasive from the perspective of a reasonable person of the same gender as the offended employee.

HR audit An objective look at the company’s HR policies, practices, procedures, and strategies to protect the company, establish best practices, and identify opportunities for improvement.

HR business partner HR staff that acts as an internal consultant to senior management.

HR Certification Institute (HRCI) A nonprofit professional certifying organization for the human resources profession.

HR professional certification Status awarded to HR professionals by a recognized certifying agency after satisfying qualifying requirements.

HRCI Body of Knowledge (BOK) The description of a set of concepts, tasks, responsibilities, and knowledge associated with HRCI credentialing.

HRIS Human resources information system. This is usually a computer-based collection of personal data for each employee.

human capital The value of the capabilities, knowledge, skills, experiences, and motivation of a workforce in an organization.

Human Resource Business Professional (HRBP) A global, competency-based credential designed to validate generally accepted professional-level core HR knowledge and skills.

Human Resource Management Professional (HRMP) A global, competency-based credential designed to validate generally accepted HR principles in strategy, policy development, and service delivery.

human resources development Systematically planned activities that help the organization’s workforce meet the current and future job and skills needs.

human resource management (HRM) The direction of organizational systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.

hybrid structure An approach to designing the internal operating structure of a company or other entity in a manner that makes use of several different organizational patterns rather than relying on one particular model.

identity alignment The extent to which diversity is accepted and embraced in an organization.

IIPP Injury and illness prevention programs.

incentive pay Pay designed to promote a higher level of job performance than otherwise included in the basic design of the job.

incentive stock options Awards of rights to purchase company stock in the future at a price determined at the time of the grant.

incentives Inducement or supplemental reward that serves as a motivational device for a desired action or behavior.

inclusion The state of including or of being included within a group or structure.

income statement A summary of management’s performance as reflected in the profitability (or lack of it) of an organization over a certain period.

independent contractor One who, in the independent exercise of his/her business affairs, contracts to do a piece of work according to his/her own methods and is subject to his/her principal’s control only as to the end product or final result of his/her work.

indirect compensation Social Security, unemployment insurance, disability insurance, pensions, 401(k), and other similar programs, healthcare, vacations, sick leave, and paid time off such as holidays.

individual incentive program An offer to individual employees in a workgroup to receive extra pay based on achievement of clearly defined objectives.

information management (IM) Application of management techniques to collect information, communicate it within and outside the organization, and process it to enable managers to make quicker and better decisions.

inpatriates Employees working at corporate headquarters who originated in a different country.

insourcing Delegating a job to someone within a company, as opposed to someone outside of the company (outsourcing).

instructional methods Approaches to training that are either teacher centered or learner centered.

intellectual property (IP) Knowledge, creative ideas, or expressions of human mind that have commercial value and are protectable under copyright, patent, service mark, trademark, or trade secret laws from imitation, infringement, and dilution.

intercultural wisdom The knowing what you do not know about the values, behavior, and communication styles of people from other cultures.

internal coaching A training or developmental process whereby organizational leaders support the achievement of a personal or professional goal.

internal equity Employees’ perception of their responsibilities, rewards, and work conditions as compared with those of other employees in similar positions in the same organization.

internal investigation Gathering verbal and written information dealing with an issue that needs to be clarified.

intrinsic motivation Stimulation that drives an individual to adopt or change a behavior for his or her own internal satisfaction or fulfillment.

intrinsic rewards Rewards such as meaningful and fulfilling work, autonomy, and positive feedback that lead to high levels of job satisfaction.

investigation A detailed search for facts involving records, witnesses, and other inputs.

investigation file A collection of documents related to complaints or charges of discrimination, policy violation, or criminal behavior assembled by an employer about an employee or event.

involuntary separations Individuals leaving the payroll for involuntary reasons including such things as performance deficiencies, policy violations, or unauthorized absence.

ISO 9000 standards Standards and guidelines on quality management and quality assurance developed by the International Organization for Standardization (ISO).

item response theory (IRT) Method used to preequate the difficulty level of questions on an exam.

job analysis A process to identify and determine the particular job duties and requirements for a given job.

job application A form used to gather information significant to the employer about an individual candidate for employment.

job classification A system for objectively and accurately defining the duties, responsibilities, tasks, and authority level of a job.

job-content-based job evaluation A job evaluation method in which the relative worth and pay of different jobs are based on their content and relationship to other jobs within the same organization.

job description A document that contains a summary of duties and responsibilities of a given job assignment and a description of the physical and mental requirements of the job.

job enlargement Broadening the scope of a job by expanding the number of tasks.

job enrichment Increasing the depth of a job by adding responsibilities.

job evaluation A systematic determination of the relative worth of jobs in an organization.

job evaluation method Quantitative or nonquantitative programs allowing sorting or categorizing jobs based on their relative worth to the organization.

job ranking Comparison of jobs based on each job’s measurable factors.

job rotation The process of shifting a person from job to job.

job sharing Two or more employees who work part-time in the same job to create one full-time equivalent person.

job specifications A statement of employee characteristics and qualifications required for satisfactory performance of defined duties and tasks comprising a specific job or function.

judgmental forecasts Projections based on subjective inputs.

judgment-based forecasting Simple estimates, the Delphi technique, focus group or panel estimates, or historically based estimates used in human resource management.

jurisdiction Power or right of a legal or political agency to exercise its authority over a person, subject matter, or territory.

key performance indicators (KPIs) Key business statistics such as number of new orders, cash collection efficiency, and return on investment (ROI), which measure a firm’s performance in critical areas.

key risk indicators (KRIs) A measure used in management to indicate how risky an activity is.

kinesthetic learners These are the “hands-on learners” or the “doers” who actually concentrate better and learn more easily when movement is involved.

knowledge Facts and information gathered by an individual.

knowledge management The way an organization identifies knowledge in order to be competitive and for the design of succession plans.

knowledge-based system Pay is based on the level of knowledge an employee has in a particular field.

KSAs Knowledge, skills, and abilities needed to perform a job.

K-W-L table Display of what students know (K), what they want to know (W), and what they actually learned (L).

labor cost differentials Adjustment to pay structures based on local competitive comparisons.

labor unions A group of people who represent workers in different occupations and work to protect the rights of the workers, such as working conditions and wages.

lagging indicator Measures the results of a process of a change, such as sales, profits, and customer service levels, a metric commonly used in the balanced scorecard.

layoffs Suspension or termination of employment (with or without notice) by the employer.

leadership 1) The individuals who are the leaders in an organization, regarded collectively. 2) The activity of leading a group of people or an organization or the ability to do this.

leadership concepts The study of leadership styles and techniques.

leadership development Teaching of leadership qualities, including communication, ability to motivate others, and management, to an individual.

leading indicator A measure that precedes, anticipates, or predicts future performance, a measure commonly used in the Balanced Scorecard.

learning management system (LMS) A comprehensive system that tracks training content, employee skill sets, training histories, and career development planning.

learning objects (LOs) Defined learning elements that may be used in other contexts in the organization, i.e., animated graphics and training aids.

learning organization Organizations that quickly respond and adapt to changes.

lecture An oral presentation intended to teach or present information.

leniency errors This occurs when ratings of all employees fall at the high end of the range.

leveling Adjustments to survey numbers by an appropriate percentage needed to achieve a match with specific jobs.

liabilities An organization’s debts and other financial obligations.

local responsiveness (LR) strategy A strategy that adapts to the needs of local markets, allowing an organization’s units to meet the needs of their unique market.

location-based differentials Adjustment to base pay programs based on work location remoteness, lack of amenities, climatic conditions, and other adverse conditions.

lockout Employer action that prevents workers from entering the workplace to do their normal jobs.

long-term care insurance Covers cost of long-term care at home, in an assisted living facility, in a nursing home, or as an inpatient in a hospice facility.

long-term disability Begins where short-term disability ends. Covers some or all of an employee’s income for up to a specified period, usually from six months to age 65 or an alternative number of years.

long-term incentives Rewards for attaining results over a long measurement period.

low-context culture A communication style that relies heavily on explicit and direct language.

lump-sum increases Either a stand-alone performance bonus or part of an annual pay increase.

managed care plans Insurance that provides plan subscribers with managed healthcare with the purpose of reducing costs and improving the quality of care.

management by objectives (MBO) A method of performance appraisal that specifics the performance goals that the employee and manager identify.

management skills The abilities required to succeed at a management job. They include such skills as leadership, communication, decision making, behavior flexibility, organization, and planning.

managerial estimates Projections based on managerial experience alone.

mandatory bargaining issues Issues that must be discussed by the employer and union when negotiating a contract of representation.

market-based job evaluation Key jobs are measured and valued against the market, and the remaining jobs are inserted into a hierarchy based on their whole-job comparison to the benchmark jobs.

marketing The process of encouraging people to purchase the organization’s products or services.

mathematically based forecasting Staffing ratios, sales ratios, or regression analysis used in human resource management analysis of data elements.

matrix structure Multiple command-and-control structure in which some employees have dual responsibilities and dual bosses.

maturity curves Measures salaries based on years of directly related experience in the profession such as research or teaching.

mean (average) Arithmetic average or mean arrived at by giving equal weight to every participant’s actual pay.

measuring Collecting and tabulating data.

median The middle number in a range.

mediation Use of an independent, impartial, and respected third party in settlement of a dispute instead of opting for arbitration or litigation.

medical file A collection of documents related to medical evaluations or status of an employee.

memorandum of understanding Union contracts for a represented group of employees and designated employers. A term usually used in the public sector.

mentoring A career relationship with an experienced individual with another who has less experience.

mergers and acquisitions (M&A) The joining together of two separate organizations (merger) or by acquiring another organization (acquisition).

merit pay Basing an employee’s salary on his or her performance over a predetermined period and according to an agreed-upon criteria.

metrics Standards of measurement by which efficiency, performance progress, or quality of a plan, process, or product can be assessed.

minimum premium plans Health insurance programs paid for in part by the employer and in part by the employee.

mission statement A statement describing what an organization does, who its customer/client base is, and how it will do its work.

mobile learning Learning across multiple contexts, through social and content interactions, using personal electronic devices.

mode The most frequently appearing number in a range.

modified duty Temporary alteration of job duties that can be performed by an employee who is medically restricted for a designated period of time.

moral hazard Lack of incentive to guard against risk where one is protected from its consequences.

motivation concepts Notions about what motivates individuals, which have come about as a result of scientific studies. Examples of researchers involved with such studies include Herzberg, Maslow, and McGregor.

multicriteria decision analysis (MCDA) A subdiscipline of operations research that explicitly considers multiple criteria in decision-making environments.

multinational enterprise (MNE) An enterprise operating in several countries but managed from one (home) country.

multiple linear regression A statistical technique based on an assumed linear relationship between a dependent variable and a variety of explanatory or independent variables.

national origin Nation of origin. This usually means national heritage and is a protected category within Title VII of the Civil Rights Act of 1964.

needs analysis See “needs assessment.”

needs assessment Determining through analysis what gaps exist between a standard or an objective and existing capabilities.

negative emphasis The rejection of a candidate based on a small amount of negative information.

negligent hiring A legal tort claim against an employer for injury to someone inside or outside the organization in a way that should have been predicted by the employer if a proper background check had been completed.

negligent retention A legal tort claim against an employer for keeping someone on the payroll who is known to be a danger to others inside or outside the organization.

net assets The difference between income and liabilities in a nonprofit organization.

new employee orientation The process of welcoming new workers into the organization that may include completing payroll or benefits documents and a tour of the workplace.

nominal group technique Development of forecasts based on input from several groups of people.

noncash awards Prizes, gifts, and awards presented in recognition of service or production or other designated achievement.

nonexempt job A job with content that requires payment of overtime for work in excess of 40 hours per week under the FLSA.

objective measurement Impartial assessment of a result.

objectives End-result intentions.

occupational categories Groupings of job titles with similar levels of responsibility or skill requirements.

occupational illness A physical or mental malady caused by job-related conditions.

occupational injury A physical or mental injury caused by job-related conditions.

offboarding Moving employees out of the organization and off the payroll.

offshoring The relocation of functions or work to another country.

on-the-job training (OJT) Training that takes place while the employee is performing the job. This usually involves a co-worker or supervisor providing the coaching or training while job content is being learned.

onboarding Transitioning new empoyees into the organization; organizational socialization.

oral employment contract Verbal agreement involving promises of duration or conditions in the employment relationship.

oral warning Verbal notice that a rule or policy has been violated and further discipline will result if the behavior is repeated.

organization exit Final formal meeting between the management and an employee leaving the firm; usually called an exit interview.

organizational culture The way an organization treats its employees, customers, and others.

organizational development The process of structured analysis and planning for strategic organizational accomplishment.

organizational learning Organization-wide continuous process that enhances its collective ability to accept, make sense of, and respond to internal and external change.

organizational restructuring A process by which an organization radically changes its internal structure or operations and processes.

organizational values The operating philosophies or principles that guide an organization’s internal conduct as well as its relationship with its customers, partners, and shareholders. These are core values.

organizing 1) The process of bringing order out of chaos. 2) Union efforts to convince employees to support a union as the designated bargaining agent for a workgroup.

orientation An introductory process or program of new employees to their jobs, organization, and facility.

OSHA Occupational Safety & Health Administration (OSHA); also, the Occupational Safety and Health Act (OSHA).

outplacement A program that assists employees in finding jobs when their job is eliminated.

outside sales exemption Exemption from overtime payment based on several qualifying factors, including the primary duty being making sales or obtaining orders for products or services. Work must be customarily and regularly engaged in away from the employer’s place of business.

outsourcing Contracting for services with a third party rather than having them performed in the organization.

overtime pay An additional amount of money paid in accordance with federal law to hourly employees who work more than 40 hours in a workweek.

paid holidays Designated days each year that are awarded to employees as paid time off.

paid leaves Paid time off for a specific designated reason.

paid sick leave Accrued paid time off for medical reasons and usually based on length of service.

paid time off (PTO) A bank of hours in which an employer pools sick days, vacation days, and personal days that employees can use as the need arises.

paid vacation Accrued paid time off, usually based on length of service.

paired comparison Method of evaluation in which each employee and job is compared with each other employee and job.

parent-country nationals (PCNs) Employees sent from the home country to a remote country for a work assignment.

Pareto chart One of the seven tools of quality control, it is a bar graph that displays variances by the number of their occurrences.

partially self-funded plans Health insurance programs where the employer purchases one or two types of stop-loss insurance coverage.

part-time Employees who work fewer than the number of hours required to be considered full-time.

pass rates The number of people, shown as a percent, who were successful in passing an exam.

pay compression Pay inequities that arise when new employees demand and get wages higher than those being paid to the current employees.

pay differentials Additional compensation paid to an employee as an incentive to accept what would normally be considered as adverse working conditions, usually based on time, location, or working conditions.

pay equity Degree to which the actual pay of an employee matches what he or she thinks to deserve. High pay equity means high employee satisfaction with his or her job; low pay equity increases the potential for absenteeism, grievances, strikes, and turnover. This is often called pay satisfaction.

pay for performance (P4P, PfP) The notion that employees are compensated based on the results they achieve on their job.

pay grades The way an organization organizes jobs of a similar value into job groups or pay grades as a result of the job evaluation process.

pay ranges Pay amounts constrained by the upper and lower boundaries of each pay grade.

pay survey Collections of data on prevailing market pay rates and information on starting wage rates, base pay, pay ranges, overtime pay, shift differentials, and incentive pay plans.

payroll The function of recordkeeping and computation of compensation for each employee that results in issuance of a check or electronic deposit and collection and deposit of payroll taxes and other withholdings.

payroll administration The act of managing the payroll function.

payroll systems Usually computerized software programs designed to accept work time data and generate paychecks or electronic deposits.

pedagogy The method and practice of teaching, especially as an academic subject or theoretical concept.

Pension Benefit Guaranty Corporation A federal corporation established under ERISA that insures the vested benefits of pension plan participants.

percentiles Distribution of data into percentage ranges such as top 10 percent and so on.

performance appraisal A process of evaluating how employees perform their jobs.

performance bonus Compensation in excess of base pay that is paid in recognition for exceeding performance/results objectives.

performance grants Stock-based compensation that is linked to organizational performance.

performance improvement program (PIP) A written plan that a supervisor provides an underperforming employee that specifies performance results required by a date.

performance management The process used to identify, measure, communicate, develop, and reward employee performance.

performance measures Methods for identifying quantities and qualities for job performance.

performance standards Indicators of what a job is to accomplish and how it is to be performed.

performance-based merit pay system A system with pay determined based on individual job performance.

permissible bargaining issues Issues that may be discussed by the employer and union during contract negotiations. They are neither required nor prohibited.

perquisites (better known as perks) Special privileges for executives, including club memberships, company cars, reserved parking, use of the company airplane, and other such benefits.

personal protective equipment (PPE) Equipment worn by employees as protection against injury or illness hazards on the job.

person-based system Employee capabilities rather than how the job is performed determine the employee’s pay.

personnel file One or more sets of documents held by an employer that contain information about the employee’s employment status, performance evaluations, disability accommodations, and so forth, collectively considered one personnel file.

PESTEL analysis Used in SWOT analysis, a framework or tool used to analyze and monitor the external environment factors that have an impact on an organization.

phantom stock plan Employee benefit program giving selected senior management employees pretend stock rather than actual stock, with the same financial benefits over time.

phased retirement Partial retirement while continuing to work a reduced schedule.

PHR Professional in Human Resources is a credential that demonstrates mastery of the technical and operational aspects of HR practices and U.S. laws and regulations.

PHRca Professional in Human Resources California is a credential for experts in employment regulations and legal mandates specific to the state of California. The PHRca combines the former PHR-CA and SPHR-CA credentials effective April 1, 2016.

PHRi Professional in Human Resources – International, a credential for internationally based HR practitioners, validating professional-level competency, knowledge, and skills in a single international setting.

picketing Technique used by unions to announce to the public a problem with an employer over issues involving working conditions or benefits.

pilot programs A small-scale, short-term experiment that helps an organization learn how a large-scale project might work in practice. This is also called a feasibility study or experimental trial.

plateau curve A type of learning curve in which learning is fast at first but then flattens out.

pluralism A work environment in which differing groups each have an agenda and conflict is overcome via negotiations as in a labor environment.

point-factor job evaluation An approach using specific compensable factors as reference points to measure relative job worth.

point-of-service plan A type of managed care plan that is a hybrid of HMO and PPO plans.

policies Statements describing how an organization is to be managed.

polycentric A condition that occurs when jobs at headquarters are filled with people from other countries and positions in remote countries are filled with people from the headquarters country.

portal to portal From door to door. This is usually applied to employees traveling from home to work or home to remote job site.

preferred provider organization Healthcare program including an in-network and an out-of-network option for services.

premium-only plans Authorized under the IRS Code, Section 125, allows employer-sponsored premium payments to be paid by the employee on a pre-tax basis instead of after-tax. These are sometimes called POP plans.

premium pay Payment at rates greater than straight pay for working overtime or other agreed-upon condition.

premiums Excess over apparent worth.

prepaid legal insurance Employer financial support for cost of routine legal services such as developing a will, real estate matters, divorces, and other services.

prescription drug plans Medical insurance programs that cover some or all of the cost of prescription drugs for subscribers.

primacy error Tendency of an employee performance evaluator or an interviewer to rely on early cues for the first impressions.

principal agent problem A conflict arising when people entrusted to look after the interests of others use the authority or power for their own benefit instead.

procedures Methods to be used in fulfilling organizational responsibilities and policies.

process alignment The linking of an organization’s structure and resources with its strategy and business environment.

process-flow analysis A diagram of the steps involved in a process.

product structure A representation of the way in which the parts of a product fit together and interact, organized in levels of detail based on structure.

productivity-based system Pay is determined by the employee’s production output.

professional employer organization Vendor who, as a co-employer, provides qualified workers to a client organization.

professional exemption Exemption from overtime payment based on several qualifying factors, including minimum pay requirement, advanced knowledge or education, and use of professional discretion and judgment.

profit-and-loss statement (P&L) A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time.

profit-sharing plans Direct or indirect payments to employees that depend on the employer’s profitability.

program evaluation and review technique (PERT) A project management tool used to organize, coordinate, and schedule tasks and people.

progressive discipline A system of penalties involving increasing sanctions that can be taken if unwanted behaviors recur.

prohibited bargaining issues Issues that may not be discussed by the employer and union during contract negotiations. These are illegal issues under the NLRA.

project hire An employee who is hired for the duration of a project. Once the project is completed, the employee is dismissed or laid off. See “term employee.”

project management Guiding the implementation of a program from beginning to end.

project management concepts The study of project management styles and techniques.

project team A group of people with specific talent or experience brought together to resolve a problem or accomplish some other organizational goal.

promotion Usually considered to be an increase in responsibility or compensation or both.

proof of identity Document such as a passport or driver’s license that contains a photo of the individual that proves that person is who they claim to be.

proof of work authorization Document such as a Social Security card or alien work registration authorization that proves the individual is authorized to work in the United States.

protected class Any group of people designated as such by the Department of Housing and Urban Development (HUD) in consideration of federal and state civil rights legislation.

prudent person rule Basic principle for investment decisions by institutional investors and professional money managers.

punitive damages Damages intended to deter a defendant from engaging in conduct similar to that which was the basis of a lawsuit.

qualified domestic relations order (QDRO) A court-issued order that instructs a plan administrator to pay all or a portion of a pension plan benefit to a divorced spouse or child.

qualitative analysis Research that explores the reasoning behind human behavior; often uses open-ended interviewing.

quantitative analysis Research based on quantifiable data.

quartiles Distribution of data into four quadrants: bottom quarter, lower-middle quarter, upper-middle quarter, and top quarter.

quid pro quo harassment Insisting on sexual favors in exchange for some job benefit, be it promotion, compensation, or just retaining employment. This normally occurs between supervisor and subordinate. Literally, it means “this for that.”

range spreads Dispersion of pay from the lowest boundary to the highest boundary of a pay range.

ratio analysis Comparison of current results or historic results at a specific point in time.

realistic job preview (RJP) A recruiting approach used by an organization to communicate the important aspects of the job prior to the offer of a position.

reasonable accommodation Adjustment to a job condition or workplace that will allow an employee to perform the essential job duties.

reasonable cause One possible determination from a state or federal enforcement agency concerning an investigation of a charge of illegal discrimination.

recency error This occurs when an evaluator gives greater weight to recent events of performance.

recognition Acknowledgment of accomplishments by individual employees.

recordkeeping Documentation involving any aspect of employee management from discussions to personal employee information.

recruitment Process of seeking out qualified job candidates for open positions.

red circle rates Pay at a rate higher than the maximum for the assigned pay range.

redeployment Assignment to a new job, often at a remote work location.

regiocentric Orientation to culture in a specific region or collection of countries such as Asian, South American, or European.

regression analysis A statistical process of estimating the relationships among variables.

rehire A former employee who is hired back onto the payroll.

reliability Consistency and validity of test results determined through statistical methods after repeated trials.

remuneration surveys Surveys that collect information on compensation and benefit practices in the prevailing market.

repatriates Employees who return to their home country following a work assignment in a different country.

replacement planning Succession planning using a snapshot assessment of existing qualified talent for key positions.

request for proposal A written document asking for vendor input and suggestions along with cost estimates for any given work to be performed in the establishment.

residual risk Exposure to loss remaining after other known risks have been countered, factored in, or eliminated.

responsibility A required part of a job or organizational obligation.

restructuring Redesigning the organization structure and altering reporting relationships and responsibility assignments.

results measurement Methods for monitoring the amount of progress that has been accomplished toward a stated goal or objective.

retention Measurement of the quantity of new employees remaining with the employer over a given period of time.

retiree An ex-employee who met the qualification requirements for retirement under the organization’s definition or plan.

return on investment (ROI) The calculation showing the value of expenditures versus the investment.

return to work Clearance to return to active employment activities following an illness, injury, or other absence.

reverse innovation Also known as trickle-up innovation; a term referring to an innovation seen first, or likely to be used first, in the developing world before spreading to the industrialized world.

risk A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities and that may be avoided through preemptive action.

risk appetite The level of risk that a person or corporation is willing to take in order to execute a strategy.

risk control Probability of loss arising from the tendency of internal control systems to lose their effectiveness over time and thus expose (or fail to prevent exposure of) the assets they were instituted to protect.

risk management Identifies and manages potential liabilities that come from operating a business.

risk position Extent of exposure to a particular risk, expressed usually in monetary terms.

risk scorecard The gathering of individual characteristics of risk and keeping track.

risk tolerance Capacity to accept or absorb risk.

role-play Technique for simulating individual participation in real-life roles involving performance or action involved with solving a problem.

Rucker plan A company-wide incentive plan in which compensation is based on a ratio of income to value added by employees engaged in the production process.

rule of law Absolute predominance or supremacy of ordinary law of the land over all citizens, no matter how powerful.

safety audit The process of evaluating the workplace for safety hazards and determining any needed corrective action.

sales personnel incentive programs Bonuses or commissions based on predetermined formulas involving performance and time.

scaffolding Teacher modeling skills and thinking for students, allowing students to take over those expressions based on the initial structure provided by the teacher.

Scanlon plan Cost-saving productivity-incentive plan in which any saving (computed per unit of output) compared with an agreed-upon standard labor cost is shared equally between the workers and the firm.

scatter diagram A graphical tool that depicts the relationship among variables.

scenario “what if” analysis The process of determining the effects on outcomes with altering details to determine a likely outcome.

seasonal employee A worker hired for a specific seasonal surge in work levels, common in retail industry and also agriculture and other food processing businesses.

Section 125 cafeteria plans Allows employees to pay certain qualified expenses on a pre-tax basis. See “premium-only plans.”

selection The ultimate choice in a field of multiple choices. This is usually applied to job candidate selection.

selection screening The process of sorting out job candidates based on specified criteria of job requirements. This is accomplished through the use of interviews, tests, and demonstrations.

self-directed team A group of people with a specific assignment permitted to select its own leadership and direction to take toward the problem or task.

self-directed work teams Assignment of employee groups with multiple knowledge and skill specialties represented from multiple disciplines.

self-funded plans Health insurance programs where the employer assumes all of the risk as a self-insured entity.

seniority Length of service in a job, employer organization, industry, or union.

seniority pay increases A pay increase given based solely on length of service.

service level agreement (SLA) Contract between a service provider and a customer; it details the nature, quality, and scope of the service to be provided. This is also called service level contract.

severance package Voluntary payment by some employers to laid off employees. It may include pay for designated number of work days, job retraining, outplacement services, and paid benefits premium assistance.

shared services HR model An HR organizational structure where specific functions of HR expertise develop HR policies and units of HR can determine what it needs for the menu of services.

short-term disability Begins where sick leave ends. This covers some or all of an employee’s income for up to a specified period, usually six months.

simple linear regression A technique in which a straight line is fitted to a set of data points to measure the effect of a single independent variable. The slope of the line is the measured impact of that variable.

simulations Imitation of real-world systems or processes. Learning exercises designed to be as realistic as possible without the risk of a real-life circumstance.

single or flat-rate system Each worker in the same job has the same rate of pay regardless of seniority or job performance.

situational judgment tests (SJTs) A type of psychological test that presents the test-taker with realistic, hypothetical scenarios and asks the individual to identify the most appropriate response or to rank the responses in the order they feel is most effective.

Six Sigma A data-driven approach and method for eliminating defects.

skill-based system When pay is based on the number and depth of skills that an employee has applicable to their job.

SMART goal model Model for creating goals that are Specific, Measurable, Attainable/Achievable, Relevant/Realistic, and Timed.

social media Contemporary methods of communicating with other individuals or groups. A term applied to Internet services such as Facebook, Pinterest, LinkedIn, and Twitter as examples.

social movement unionism A type of union activity to devoted to topics associated with social issues.

Society of Human Resource Professionals (SHRM) The world’s largest HR membership organization devoted to human resource management, representing more than 275,000 members in over 160 countries.

software as a service (SaaS) Software rental from a centralized location, described as the “cloud,” as opposed to having software installed on a desktop computer.

solution analysis Statistical comparison of various potential solutions.

sourcing The process of finding applicants and suppliers of goods or services.

span of control The number of subordinates reporting to a supervisor or manager.

specific stop-loss coverage The health plan is protected against the risk of a major illness for one participant, or one family unit, covered by the plan.

SPHR Senior Professional in Human Resources credential for those who have mastered the strategic and policy-making aspects of HR management in the United States.

SPHR-CA Senior Professional in Human Resources credential for experts in employment regulations and legal mandates specific to the state of California (no longer recognized effective April 1, 2016; see PHR-ca).

SPHRi Senior Professional in Human Resources – International, a credential for internationally based HR leaders validating senior-level HR mastery and global competency in a single international setting.

staff units Specialized services provided to work groups.

staffing Filling job openings with qualified applicants.

stakeholder concept A conceptual framework of business ethics and organizational management that addresses moral and ethical values in the management of a business or other organization.

stakeholders Individuals with an interest in an organization’s success or outcomes.

standard deviation Scores in a set of data that spread out around an average.

standards The yardstick by which amount and quality of output are measured.

state employment service The agency responsible for assisting citizens with job placement and unemployment benefits in each state.

statistical forecasts Use of mathematical formulas to identify patterns and trends.

step rate with performance considerations A system allowing performance to influence the size or timing of a pay increase along the step system.

stereotyping Broadly classifying people into groups based on characteristics that may not be accurate. “All blonds are dumb,” for example.

storytelling Use of multimedia technology such as PowerPoint to present interactive opportunities involving any subject.

straight piece rate system Employee receives a base rate of pay and is awarded additional compensation for the amount of output produced.

strategic business management That which formulates and produces HR objectives, programs, practices, and policies.

strategic fit A situation that occurs when a specific project, target company, or product is seen as appropriate with respect to an organization’s overall objectives.

strategic planning Identifying organizational objectives and determining what actions are required to reach those objectives.

strategies Specific direction that outlines objectives to achieve long-term plans.

strategy 1) A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem. 2) The art and science of planning and marshalling resources for their most efficient and effective use.

stress interview Emotionally charged interview setting where the interviewee is put under psychological stress to evaluate how he or she performs under pressure.

strictness An error in which a manager is too strict in evaluating the performance of employees, leading to decreases in motivation and performance.

strike Work stoppage resulting from a failed negotiation between employer and union.

structured interview Fixed-format interview in which all questions are prepared beforehand and are put in the same order to each interviewee.

subject matter expert A person who is well versed in the content of a specific knowledge area.

subjective measurement Assessment of a result using opinion or perception.

substance abuse Personal use of alcohol or drugs in excess of amounts prescribed by a medical professional, or any use of illegal substances. Abuse generally results in an impairment of the individual’s physical or mental capacities.

succession planning A process of identifying a plan for the replacement of key employees.

supplemental unemployment benefits An unemployment benefit in addition to government benefits offered by some employers.

supply analysis Strategic evaluation of job candidate sources, plant locations, and other factors.

supply chain Entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer.

suspension Temporary hiatus of active employment, usually as a disciplinary step, that can be paid or unpaid.

sustainability Ability to maintain or support an activity or process over the long term.

SWOT analysis A process in strategic planning that looks at an organization’s strengths, weaknesses, opportunities, and threats.

talent management The management and integration of all HR activities and processes that aligns with the organization’s goals and needs.

talent retention The retention of key talent, those employees who are the strongest performers, have high potential, or are in critical jobs.

taskforce A group of people assembled to address major organizational issues.

teacher exemption Exemption from overtime payment based on several qualifying factors, including the primary duty of teaching in an educational establishment.

teams A group of people focused on specific organizational issues.

temp-to-lease Conversion of a temporary agency–provided employee to regular employee status in the client organization.

term employee An employee who is hired for the duration of a project. Once the project is completed, the employee is dismissed or laid off. See “project hire.”

termination End of the employment relationship.

theory of constraints (TOC) Concepts and methodology aimed mainly at achieving the most efficient flow of material in a plant through continuous process improvement.

third-country nationals (TCNs) Employees who are moved from one remote location to another remote location for a work assignment.

third party Someone other than the two primary parties involved in an interaction.

third-party administrator plan Health insurance programs in which the employer assumes all of the risk but hires an independent claims department.

time-based differential pay Shift pay that is generally time-based rewards for employees who work what are considered undesirable shifts like night shifts.

time-based step rate system Determining pay rate based on the length of time in the job.

total quality management (TQM) A management system for achieving customer satisfaction using quantitative methods to improve processes.

total rewards Financial inducements and rewards, as well as nonfinancial inducements and rewards, such as the value of good job content and good working environment.

total rewards strategy An integrated reward system encompassing three key elements that employees value from their employment: compensation, benefits, and work experience that attracts and retains talent.

totalization agreements Agreements between several nations that avoid double taxation of income for workers who divide their working career between two or more countries.

trade union An organization whose membership consists of workers and union leaders, united to protect and promote their common interests.

trainability The readiness and motivation to learn.

training The process whereby people acquire skills, knowledge, or capabilities to perform jobs.

training effectiveness Measurement of what students are expected to be able to do at the end of the training course or module.

training techniques Approaches to training including virtual, classroom, on-the-job, and one-on-one tutoring.

transactional leadership A leadership style that focuses on rewards, or threat of discipline, in an effort to motivate employees.

transfer Movement of current employee to a different job in a different part of the organization.

transfer of learning Ability of a trainee to apply the behavior, knowledge, and skills acquired in one learning situation to another.

transformational leadership A leadership style that motivates employees by inspiring them.

travel pay Extra pay provided for travel time, either under legal requirement or by other agreement.

trend analysis Comparison of historical results with current results to determine a trend.

triple bottom line Financial, social, and environmental effects of a firm’s policies and actions that determine its viability as a sustainable organization.

tuition reimbursement Employer financial support for employee continuing education efforts.

turnover analysis Comparison of the reasons for employees leaving the workforce and the organizational problems that may be causing them.

unfair labor practice (ULP) Legally prohibited action by an employer or trade union such as refusal to bargain in good faith.

uniform guidelines Federal regulations that specify how job selection tools must be validated.

unpaid sick leave Accrued unpaid time off usually based on length of service.

unweighted average Raw average of data that gives equal weight to all factors, with no regard to individual factors.

validity The extent to which a test measures what it says it measures.

value Resulting benefits created when an organization meets its strategic goals

value chain Interlinked value-adding activities that convert inputs into outputs, which, in turn, add to the bottom line and help create competitive advantage.

value drivers Entities that increase the value of a product or service by improving the perception of the item and essentially providing a competitive advantage.

values The principles or standards of behavior that are most important to either an individual or entity.

variable pay Performance-based pay that includes individual performance bonuses, executive bonuses, profit sharing, gainsharing, group incentives, and other incentives tied to productivity as opposed to base pay.

variance analysis Process aimed at computing variance between actual and budgeted or targeted levels of performance and identification of their causes.

veteran A former member of the U.S. military service in any branch.

veto The action of canceling or postponing a decision or bill in the U.S. legislature.

vicarious liability Obligation that arises from the relationship of one party with another.

vision care plans Medical insurance programs that cover some of all of the cost of vision care (exams and corrective lenses) for subscribers.

vision statement A statement that describes the desired future of an organization.

visual learners A learning style in which ideas, concepts, data, and other information are associated with images and techniques.

voluntary separations Individuals leaving the payroll for voluntary reasons including such things as retirement, obtaining a different job, returning to full-time education, or personal reasons.

wage compression A reduction in the relative wage differentials between high- and low-paying jobs resulting in insufficient incentives required for higher-level job responsibilities and skills.

weighted average An average result taking into account the number of participants and each participant’s pay.

Weingarten rights A term used that refers to a union employee’s right to have a union representative or co-worker present during an investigatory interview.

well-being A good or satisfactory condition of existence; a state characterized by health, happiness, and prosperity; welfare.

work councils An organization that represents employees on a local level. A work council often provides a useful collective bargaining tool for employees that require an organization that is more familiar with their particular situation than a national labor union, for example.

work-life balance (WLB) A comfortable state of equilibrium achieved between an employee’s primary priorities of their employment position and their personal lifestyle.

workers’ compensation Program that provides medical care and compensates employee for part of lost earnings as a result of a work-related disability.

workforce analysis Assessment of the workforce and things that are influencing it.

workforce management Managing employees’ work activities and responsibilities, work hours, planning, scheduling, and tracking results of the work effort.

workforce planning and employment The process of recruiting, interviewing, staffing, assuring equal employment opportunity, affirmative action, new employee orientation, retention, termination, and employee records management performed by an employer.

workplace violence Personal behavior that ranges from shouting to hitting or worse taking place on an employer’s premises.

workweek A period of seven days that always begins at the same hour of the same day each week.

written employment contract Written agreement involving promises of duration or conditions in the employment relationship.

written warning Written notice that a rule or policy has been violated and further discipline will result if the behavior is repeated.

zero-based budgeting A model of budgeting that is based on expenditures being justified for each budget year.

zero-sum Whatever is gained by one side is lost by the other.