This list of terms and their brief definitions is
comprehensive, not exhaustive. To fully understand a topic, further reading will
often be necessary — for instance, elsewhere in iWorkwell's HR Navigator or Regulations & Forms sections. Note that many words and
phrases in common use have a different meaning in a business or human resources
context.
Absence: Incident that occurs when an employee is not
present at work during a normally scheduled work period.
Absenteeism: The state of chronic absence from work.
Absolute Rankings: A rating method where the rater
assigns a specific value on a fixed scale to the behavior or performance of an
individual instead of assigning ratings based on comparisons between other
individuals.
Accessibility: A term used primarily in the Americans
With Disabilities Act. It refers to the extent to which a facility is readily
approachable and usable by individuals with disabilities.
Accessible Format: Informational materials designed in
alternate formats (e.g., Braille, audiotape, electronic) for individuals with
visual impairments.
Accidental Death and Dismemberment Insurance
(AD&D): AD&D covers death or dismemberment as a result of an
accident. In contrast to life insurance, AD&D generally would not pay
survivor benefits in the case of death by illness. AD&D premiums are
generally cheaper than life insurance because the incidence of death by accident
is lower than death by natural causes.
Action Steps: The part of a written affirmative action
plan that specifies how an employer plans to reduce underutilization of
protected groups.
Active Practice: The performance of job-related tasks
and duties by trainees during training.
Adverse Impact: A substantially different rate of
selection in hiring, promotion, transfer, training, or other employment-related
decisions for any race, sex, or ethnic group from which an inference can be made
that the employment selection process is discriminatory.
Adverse Selection: Situation in which only higher-risk
employees select and use certain benefits.
Affected Class: Groups of people (protected by
anti-discrimination laws) who, because of past discrimination, may continue to
suffer its effects. Affected class status may be determined by statistical
analysis and/or court decision.
Affirmative Action Plan: Formal document that an
employer compiles annually for submission to enforcement agencies.
Affirmative Action: A process in which employers
identify problem areas, set goals, and take positive steps to guarantee equal
employment opportunities for people in a protected class.
Age Discrimination and Employment Act of 1967 (ADEA):
The ADEA specifies that it is unlawful for an employer to fail or refuse to hire
or to discharge an individual or otherwise discriminate against an individual
with respect to compensation, terms, conditions, or privileges of employment,
because of an individual's age.
Agency Shop: A firm that requires employees who refuse
to join the union to pay equivalent amounts equal to union dues and fees for the
union's representative services.
Agent: A manager, or one who acts on behalf of an owner
(principal), in agency theory; in human resources, management may refer to an
employee.
Alien: An individual born in (and a citizen of) a
country other than the country in which he or she is living.
Alternative Dispute Resolution (ADR): A voluntary
procedure used to resolve disputes or conflicts between individuals, groups or
labor-management. This procedure utilizes the services of a neutral third party
to facilitate discussion and assist the parties in reaching a binding agreement.
Americans with Disabilities Act of 1990 (ADA): The ADA
prohibits discrimination on the basis of disability in employment, programs and
services provided by state and local governments, goods and services provided by
private companies, and in commercial facilities.
Analytic Approach: Type of assessment of HR
effectiveness that involves determining the impact of, or the financial costs
and benefits of, a program or practice.
Applicant Tracking System (ATS): An employee
recruitment software application that can be used to post job openings on a
corporate Web site or job board. It can be useful in screening resumes, and
requesting interviews by e-mail. It is estimated that roughly 50 percent of all
mid-sized companies and almost all large corporations use some type of applicant
tracking system.
Arbitration: Process by which negotiating parties
submit their dispute to a third party to make a decision.
Assessment: Collecting information and providing
feedback to employees about their behavior, communication style or
skills.
Assessment Center: A collection of instruments and
exercises designed to diagnose a person's development needs.
Assignment Flow: The criteria used to make promotion
and assignment decisions.
Associate Union Membership: A form of union membership
by which the union receives dues in exchange for services (e.g., health
insurance) but does not provide representation in collective bargaining.
Attitude Survey: A special type of survey that focuses
on employees' feelings and beliefs about their jobs and the
organization.
Attitudinal Structuring: The aspect of the
labor-management negotiation process that refers to the relationship and level
of trust between the negotiators.
Attrition: Voluntary resignations, deaths, and employee
retirements that result in a reduction to the employer's physical
workforce.
Audit Approach: Type of assessment of HR effectiveness
that involves review of customer satisfaction or key indicators (e.g., turnover
rate, average days to fill a position) related to an HR functional area (e.g.,
recruiting, training).
Availability Analysis: An analysis that identifies the
number of protected-class members available to work in the appropriate labor
market in given jobs.
Base Pay: Compensation for past wage and benefit losses
caused by discriminatory employment practices or procedures. Lost wages include
overtime, incentive pay, raises and bonuses.
Balance-Sheet Approach: An approach to international
compensation that provides international employees with a compensation package
that equalizes cost differences between the international assignment and the
same assignment in the home country.
Bargaining Agreement: Also known as a collective
bargaining agreement. It is a contract between an employer and union covering
wages, hours and other terms and conditions of employment for employees in the
bargaining unit.
Bargaining Unit: All employees eligible to select a
single union to represent and bargain collectively for them.
Base Pay: The basic compensation an employee receives,
usually as a wage or salary.
Basic Skills: Reading, writing and communication skills
needed to understand the content of a training program.
Behavioral Description Interview: A type of work-family
conflict that occurs when employees' behavior in work roles is not appropriate
for their behavior in family roles.
Behavioral Rating: Assesses an employee's behaviors
instead of other characteristics.
Behavior-Based Conflict: A type of work-family conflict
that occurs when employees' behavior in work roles is not appropriate for their
behavior in family roles.
Benchmark Job: Job found in many organizations and
performed by several individuals who have similar duties that are relatively
stable and that require similar knowledge, skills and abilities.
Benchmarking: Comparing specific measures of
performance against data on those measures in "best practices" organizations.
Benefit: Indirect compensation given to employees for
organizational membership.
Blended Workforce: A structured but flexible mixture of
permanent full-time, part-time, temporary employees and independent contractors.
Blue-collar Employees: Blue-collar workers are hourly
paid workers employed in occupations that require physical or manual labor.
Bona Fide Occupational Qualification (BFOQ): A
characteristic providing a legitimate reason why an employer can exclude persons
on otherwise illegal bases of consideration.
Bonus: A payment made on a one-time basis, which does
not become part of the employee's base pay.
Broadbanding: Practice of using fewer pay grades having
broader ranges than traditional compensation systems.
Business Agent: A full-time union official employed by
the union to operate the union office and assist union members.
Business Necessity: A practice necessary for safe and
efficient organizational operations.
Bumping: Type of assessment of HR effectiveness that
involves review of customer satisfaction or key indicators (e.g., turnover rate,
average days to fill a position) related to an HR functional area (e.g.,
recruiting, training).
Business Process Outsourcing (BPO): A practice that
permits senior level employees whose positions have been slotted for elimination
or downsizing the option of accepting an alternative position within the
organization for which they are qualified to perform and which is currently
occupied by another employee with less seniority.
Cafeteria Plan: A plan in which an employer offers
employees a variety of different benefits. The employee is able to choose which
benefits would fit their individual needs. Examples of benefits offered in the
cafeteria include group-term life insurance, dental insurance, disability and
accident insurance, and reimbursement of healthcare expenses.
Call Center: See Contact Center.
Capitated Pricing: Vendors deliver contracted services
for a set amount of money per employee per month. This can be a risky strategy
for vendors whose profitability is directly tied to how much the services are or
are not used (e.g., employee assistance programs).
Career: The sequence of work-related positions a person
occupies throughout life.
Career Development: The process by which employees
progress through a series of stages, each characterized by a different set of
developmental tasks, activities and relationships.
Career Path: A sequence of job positions involving
similar types of work and skills that employees move through in a
company.
Career Planning: A process by which employees become
aware of interests, values, strengths and weaknesses; obtain information about
job opportunities; identify career goals; and establish action plans to achieve
career goals.
Central Tendency Error: Rating all employees in a
narrow band in the middle of the rating scale.
Checkoff: A union contract provision that requires an
employer to deduct union dues from employees' paychecks.
Child Labor Laws: Provisions under FLSA are designed to
protect the educational opportunities of youth and prohibit their employment in
jobs that are detrimental to their health and safety. FLSA restricts the hours
that youth under the age of 16 can work and lists hazardous occupations too
dangerous for young workers to perform.
Client-Server Architecture: Computer design that
provides a method to consolidate data and applications into a single host system
(the client).
Climate For Transfer: Trainees' perceptions of
characteristics of the work environment (social support and situational
constraints) that can either facilitate or inhibit use of trained skills or
behavior.
Climate Survey: A tool used to solicit and assess
employee opinions, feelings, perceptions and expectations regarding a variety of
factors pertinent to maintaining the organizations climate, such as
opportunities for growth, management, working relationships and environment,
etc.
Closed Shop:A firm that requires individuals to join a
union before they can be hired.
Coaching: Daily training and feedback given to
employees by immediate supervisors.
Co-Determination: A practice whereby union or worker
representatives are given positions on a company's board of directors.
Collective Bargaining:The process whereby
representatives of management and workers negotiate over wages, hours, and other
terms and conditions of employment
Commission: Compensation computed as a percentage of
sales in units or dollars.
Common Law Employment Test: Refers to the IRS's
20-question common law test which examines the level of control exercised over a
worker by an employer in order to determine whether the individual is an
employee or an independent contractor.
Compa-Ratio: Pay level divided by the midpoint of the
pay range.
Compensable Factors: A practice that permits senior
level employees whose positions have been slottehe characteristics of jobs that
an organization values and chooses to pay for.
Compensation Committee: Usually a subgroup of the board
of directors composed of directors who are not officers of the firm.
Compensatory Time Off:The practice of giving employees
paid time off that can be used in the future in lieu of paying them overtime for
hours worked in excess of 40 per week. While an acceptable practice in the
public sector, the FLSA places very strict limitations on the use of
compensatory time off for private sector employers.
Competitive Advantage: A company's ability to make
products or offer services that are valued by customers more than those of
competing firms.
Competitiveness: A company's ability to maintain and
gain market share in its industry.
Compliance Officer: Specially trained agent of the U.S.
Department of Labor responsible for ensuring that employers meet OSHA
requirements.
Compressed Workweek: Workweek in which a full week's
work is accomplished in fewer than five days.
Computer-Aided Manufacturing (CAM): A manufacturing
system that uses computers to direct production of the product.
Conciliation: Process by which a third party attempts
to keep union and management negotiators talking so that they can reach a
voluntary settlement.
Concurrent Validation: A criterion-related validity
study in which a test is administered to all the people currently in a job and
then incumbents' scores are correlated with existing measures of their
performance on the job.
Consolidated Omnibus Budget Reconciliation Act (COBRA):
The 1985 act that requires employers to permit employees to extend their health
insurance coverage at group rates for up to 36 months following a qualifying
event, such as layoff.
Constructive Discharge: Occurs when art employer
deliberately makes conditions intolerable in an attempt to get an employee to
quit.
Content Validity: Validity measured by use of a
logical, non-statistical method to identify the KSAs and other characteristics
necessary to perform a job.
Contingent Work Force: Temporary, part-time and
self-employed workers who are not considered full-time employees.
Continuous Learning: The requirement that employees
understand the relationships among their jobs, their work units, and the company
and that they acquire skills and knowledge needed for self-improvement and for
improving the company's products and services.
Contractual Rights: Rights based on a specific
contractual agreement between employer and employee.
Contributory Plan: Pension plan in which the money for
pension benefits is paid in by both employees and employers.
Copayment: Employee's payment of a portion of the cost
of both insurance premiums and medical care.
Corporate Campaigns: Union activities designed to exert
public, financial or political pressure on employers during the union-organizing
process.
Correlation Coefficient: A statistic that measures the
degree to which two sets of numbers are related to each other.
Cost-Benefit Analysis: The process of determining the
economic benefits of a training program using accounting methods.
Craft Union: A union whose members do one type of work,
often using specialized skills and training.
Criterion-Related Validity: A method of establishing
the validity of a personnel selection method by showing a substantial
correlation between test scores and job-performance scores.
Critical Job Dimensions: Elements of a job on which
performance is measured.
Cross-Cultural Preparation: The process of educating
employees (and their families) who are given an assignment in a foreign
country.
Culture: The societal forces affecting the values,
beliefs and actions of a distinct group of people.
Cumulative Trauma Disorders: Muscle and skeletal
injuries that occur when workers repetitively use the same muscles to perform
tasks.
Decertification: A process whereby a union is removed
as the representative of a group of employees.
Decision Support Systems: Problem-solving systems that
usually include a "what-if" feature that allows users to see how outcomes change
when assumptions or data change.
Defamation: Injury caused to an individual's character
or reputation resulting from another individual(s) issuing false or malicious
statements either verbally or in writing.
Defined Benefit Plan: Retirement plan that pays
participants a lump-sum amount that has been calculated using formulas that can
include age, earnings and length of service.
Defined Contribution Plan: A pension plan that clearly
defines the amount of contributions, which is usually a percentage of an
employee's salary. The benefits payable at retirement depend on several factors
including future investment return and annuity rate at retirement.
Delayering: Reducing the number of job levels within an
organization.
Department of Labor (DOL): The federal agency
responsible for administering and enforcing a large quantity of federal labor
laws, including, but not limited to, overtime pay, child labor, wages and hours,
workplace health and safety, FMLA, and various other employee rights.
Development: The acquisition of knowledge, skills, and
behaviors that improve an employee's ability to meet changes in job requirements
and in client/customer demands.
Development Planning: A process through which employees
identify developmental needs, expected outcomes of their development (such as
changes in behavior, new problem solving strategies), and the actions that
should be taken for development to occur and create a timetable for improvement
to be created.
Direct Applicants: People who apply for a job vacancy
without prompting from the organization.
Directional Pattern Model: A career development model
suggesting that employees make decisions about how quickly they want to progress
through career stages and at what point they want to return to an earlier career
stage.
Fact Finder: A person who reports on the reasons for a
labor-management dispute, the views and arguments of both sides, and a
non-binding recommendation for settling the dispute.
Fair Credit Reporting Act (FCRA) of 1969: The FCRA
requires employers that use credit reports and that deny employment on the basis
of a credit report to so notify the applicant and to provide the name and
address of the consumer reporting agency used.
Fair Labor Standards Act (FLSA): The 1938 law that
established the minimum wage and overtime pay.
Family And Medical Leave Act (FMLA): The 1993 act that
requires employers with 50 or more employees to provide up to 12 weeks of unpaid
leave after childbirth or adoption; to care for a seriously ill child, spouse,
or parent; or for an employee's own serious illness.
Featherbedding: An unfair labor practice occurring when
a union requires an employer to pay an employee for services he or she did not
perform.
Federation: A group of autonomous national and
international unions.
Financial Accounting Statement (FAS) 106: The rule
issued by the Financial Accounting Standards Board in 1993 requiring companies
to fund benefits provided after retirement on an accrual rather than a
pay-as-you-go basis and to enter these future cost obligations on their
financial statements.
Flexible Benefits Plan: Benefits plan that allows
employees to select the benefits they prefer from groups of benefits established
by the employer.
Flexible Spending Account (FSA): A FSA allows employees
to set aside a portion of their earnings on a pre-tax basis into separate
spending accounts to fund allowable health care and/or dependent day care
expenses. The funds must be segregated as per IRS regulations.
Flexible Staffing: Use of recruiting sources and
workers who are not employees.
Flextime:Variable work hours requiring employees to
work a standard number of core hours within a specified period of time, allowing
employees greater flexibility in their starting and ending times — often around
core hours.
Forced Distribution: Performance appraisal method in
which ratings of employees' performance are distributed along a bell-shaped
curve.
Forecasting: Identifying expected future conditions
based on information from the past and present.
Formal Education Programs: Employee development
programs, including short courses offered by consultants or universities,
executive M.B.A. programs, and university programs.
4/5 Rule: Rule stating that discrimination generally is
considered to occur if the selection rate for a protected group is less than 80
percent of the group's representation in the relevant labor market or less than
80 percent of the selection rate for the majority group.
401(k) Plan: A retirement plan named after the tax code
provision that allows employees to defer compensation on a pre-tax basis.
Gag Clause: See Nondisclosure Agreement.
Gainsharing: A form of group compensation based on
group or plant performance (rather than organization-wide profits) that does not
become part of the employee's base salary.
Garnishment: A court action in which a portion of an
employee's wages is set aside to pay a debt owed a creditor.
General Duty Clause: The provision of the Occupational
Health and Safety Act that states that an employer has an overall obligation to
furnish employees with a place of employment free from recognized hazards.
Generalizability: The degree to which the validity of a
selection method established in one context extends to other contexts.
Glass Ceiling: A barrier to advancement to higher-level
jobs in the company that adversely affects women and minorities. The barrier may
be due to lack of access to training programs, development experiences or
relationships (e.g., mentoring).
Global Organization: An organization that has corporate
units in a number of countries that are integrated to operate as one
organization worldwide.
Goals: What in organization hopes to achieve in the
medium to long-term future.
Goals and Timetables: The part of a written affirmative
action plan that specifies the percentage of women and minorities that an
employer seeks to have in each job group and the date by which that percentage
is to be attained.
Golden Parachute: A severance benefit that provides
protection and security to executives in the event that they lose their jobs or
their firms are acquired by other firms and they are negatively affected.
Graphic Rating: Using a scale that allows the rater to
mark an employee's performance on a continuum.
Green-Circled Employee: An incumbent who is paid below
the range set for the job.
Grievance: An alleged misinterpretation, misapplication
or violation of a provision in a union-management agreement.
Grievance Arbitration: A means by which disputes
arising from different interpretations of a labor contract are settled by a
third party.
Grievance Procedure: A formal channel of communications
used to resolve grievances.
Group-Building Techniques: Techniques that help
trainees share ideas and experiences, build group identity, understand the
dynamics of interpersonal relationships, and get to know their own strengths and
weaknesses and those of their co-workers.
Groupware: Software application that enables multiple
users to track, share and organize information and to work on the same database
or document simultaneously.
Halo/Horn Effect: A form of interviewer bias, occurring
when the interviewer rates or judges an individual based on the individual's
positive or strongest traits, allowing their overall perception of the person to
overshadow any negative traits. Referred to as the "halo effect" when it works
in the candidate's favor or the "horn effect" when it works against the
candidate.
Hand-Billing: Practice in which unions give written
publicity to employees to convince the employees to sign authorization cards.
Hands-On Techniques: Training methods that provide
direct experience (e.g., on-the-job training, simulations, business games and
case studies, behavior modeling, and interactive video).
Harassment: Conduct or actions, based on race,
religion, sex, national origin, age, disability, military membership or veteran
status, severe or pervasive enough to create a hostile, abusive or intimidating
work environment for a reasonable person. State laws may further define
harassment to include additional protections.
Hawthorne Studies: Studies conducted at the Western
Electric plant in 1927 suggesting that increases in employee productivity can be
realized if employees are treated in a positive manner.
Hazard Pay: A special payment made in addition to an
individual's salary for accepting assignments at locations where there is threat
of physical danger or for performing positions that are hazardous to the
individual's health and well-being.
Health: A general state of physical, mental and
emotional well-being.
Health Insurance Portability and Accountability Act (HIPAA)
of 1996: Enacted to make health insurance more portable from one employer to
another, the law mandates procedures for both new hires and for exiting
employees. New employees can use evidence of previous health care coverage
provided by their former employer to reduce or eliminate the new employer's
preexisting condition requirements. Exiting employees must be provided a
certificate of prior creditable health care coverage to use for this purpose.
HIPAA includes other provisions regarding restrictions on preexisting
conditions, special enrollment rights, privacy rights and protections.
Health Maintenance Organization (HMO): A health-care
plan that provides benefits on a pre-paid basis for employeeswho are required to
use only HMO medical service providers.
High-Leverage Training: Training practice that links
training to strategic business goals, has top management support, relies on an
instructional design model, and is benchmarked to programs in other
organizations.
High-Performance Work Systems:Work systems that
maximize the fit between the company's social system and technology.
Homesourcing: See Telecommuting
Host Country: The country in which the parent-country
organization seeks to locate or has already located a facility
Host-Country National:An employee working in a unit or
plant who is a citizen of the country in which the unit or plant is located but
where the unit or plant is operated by an organization headquartered in another
country.
Human Capital: The collective abilities, knowledge,
experience and skills that employees possess. For many (especially
"knowledge-based") companies and industries, human capital is a critical asset,
arguably more important than physical or financial capital.
HR Audit: A formal research effort that evaluates the
current state of HR management in an organization.
HR Generalist: A person with responsibility for
performing a variety of HR activities.
HR Help Desk: See Contact Center.
HR Information System (HRIS): A computer database used
to gather, store, maintain and retrieve relevant employee and HR-related
information.
HR Management: The design of formal systerns in an
organization to ensure the effective and efficient use of human talent to
accomplish organizational goals.
HR Management System (HRMS): See HRIS
HR Metrics: Measurements used to determine the value
and effectiveness of HR strategies. Typically includes such items as cost per
hire, turnover rates/costs, training and human capital ROI, labor /productivity
rates and costs, benefit costs per employee, etc.
HR Outsourcing (HRO): Entrusting all or some portion of
HR operations to a third party. The outside HR service provider may take on
specific traditional functions such as payroll, benefits administration or
training, or it may handle broader processes such as recruiting or staffing the
contact center.
HR Planning: The process of analyzing and identifying
the need for and availability of human resources so that the organization can
meet its objectives.
HR Research: The analysis of data from HR records to
determine the effectiveness of past and present HR practices.
HR Specialist: A person with in-depth knowledge and
expertise in a limited area of HR.
Immigration Reform and Control Act (IRCA) of 1986: The
IRCA prohibits the employment of individuals who are not legally authorized to
work in the United States or in an employment classification that they are not
authorized to fill. It requires employers to certify (using the I-9 form) within
three days of employment the identity and eligibility to work of all employees
hired and it prohibits discrimination in employment-related matters on the basis
of national origin or citizenship.
Independent Contractor: An individual who works
independently to assist and advise client organizations with various
organizational functions and responsibilities on a fee-for-service
basis.
Individual-Centered Career Planning: Career planning
that focuses on individuals' careers rather than on organizational needs.
Industrial Union: A union that includes many persons
working in the same industry or company, regardless of jobs held.
Instructional Design Process: A systematic approach for
developing training programs.
Instrumentality: The perceived relationship between
choosing a particular job and obtaining a desired outcome.
Integrative Bargaining: The part of the
labor-management negotiation process that seeks solutions beneficial to both
sides.
Internal Analysis: The process of examining an
organization's strengths and weaknesses.
ISO 9000: Developed by the International Organization
for Standardization (ISO), this set of standards for quality management systems
is internationally accepted. Organizations conforming to these standards can
receive ISO 9000 certification.
Internet: A tool used for communications and to locate
and gather resources Such as software and reports.
Intra-Organizational Bargaining: The part of the
labor-management negotiation process that focuses on conflicting objectives of
factions within labor and management
ISO 9000: A series of quality assurance standards
developed by the International Organization for Standardization in Switzerland.
ISO 9000 certification is a requirement for doing business in many countries
including the European Community, Austria, Finland, Iceland, Liechtenstein,
Norway, Sweden, Switzerland, Australia, Japan, South America, and Africa.
Job: A grouping of similar positions having common
tasks, duties, and responsibilities.
Job Accommodation Network (JAN): A service of the
Office of Disability Employment Policy (ODEP), within the U.S. Department of
Labor, JAN facilitates the employment and retention of workers with disabilities
by providing employers, employment providers, people with disabilities and
others with information on job accommodations, self-employment and small
business opportunities and related subjects.
Job Analysis: A systematic way to gather and analyze
information about the content and the human requirements of jobs, and the
context in which jobs are performed.
Job Classification: A method of evaluation used for job
comparisons, which groups jobs into a prearranged number of grades, each having
a class description and a specified pay range.
Job Description: Identification of the tasks, duties,
and responsibilities of a job.
Job Design: The process of defining the way work will
be performed and the tasks that will be required in a given job.
Job Enrichment: Ways to add complexity and
meaningfulness to a person's work.
Job Evaluation: An administrative procedure used to
measure job worth within an organization.
Job Fair: A place where employers gather, often at a
university, for a short time to meet large numbers of potential job applicants.
Job Family: A grouping of jobs having similar
characteristics.
Job Hazard Analysis: Technique Method of isolating
potential safety concerns by breaking job into components and having expert
raters evaluate the potential for injury associated with each
component.
Job Involvement: The degree to which people identify
themselves with their jobs.
Job Posting: Programs companies adopt to promote from
within, such as publicizing vacancies on bulletin boards, in company
newsletters, or in memos.
Job Redesign: Changing the tasks or tile way work is
performed in an existing job.
Job Rotation: The process of systematically moving a
single individual from one job to another over tile course of time. The job
assignments may be in various functional areas of the company or movement
between jobs in a single functional area or department.
Job Satisfaction: A positive emotional state that
results from the perception that one's job fulfills or allows for the
fulfillment of one's important job values.
Job Specifications: Listing of the knowledge, skills,
and abilities (KSAs) an individual needs to do the job satisfactorily.
Job Structure: The relative pay of jobs in an
organization.
Job Withdrawal: A set of behaviors that dissatisfied
individuals enact to avoid the work situation.
Joint Union-Management Programs: Programs funded by
both employers and unions designed to help employees prepare for workplace
changes resulting from new technology and restructuring.
Joint Venture: A cooperative business agreement between
two or more companies in which the companies contribute assets, and share
ownership and risk. The agreement usually results in the establishment of a new
business.
Just Cause: Sufficient justification for actions.
Just-In-Time (JIT) Inventory System: An inventory
system that arranges for parts or materials to be delivered as they are needed
in the manufacturing process.
Key Jobs: Benchmark jobs, used in pay surveys, that
have relatively stable content and are common to many organizations.
Knowledge, Skills, And Abilities (KSAs): KSAs referrs
to the education, experience, skills, and personal, mental and physical
abilities required to perform a job.
Labor Markets: The external sources from which
organizations attract employees.
Landrum-Griffin Act: The 1959 act that regulated
unions' actions and their internal affairs (e.g., financial disclosure and
conduct of elections).
Learning Organization: An organization whose employees
are continuously attempting to learn new things and apply what they learn to
improve product or service quality.
Life-Cycle Model: A career development model suggesting
that employees face certain developmental tasks over the course of their careers
– moving through distinct life or career stages.
Lockout: Shutdown of company operations undertaken by
management to prevent union members from working..
Lump-Sum Increase (LSI): A one-time payment of all or
part of a yearly pay increase.
Maintenance of Membership: Union rules requiring
members to remain members for a certain period of time (e.g., the length of the
union contract).
Malcolm Baldrige National Quality Award: An award
established in 1987 to promote quality awareness, to recognize quality
achievements of U.S. companies, and to publicize successful quality strategies.
Managed Care: Approaches designed to monitor and reduce
medical costs using good management practices and the market system.
Management by Objectives (MBO): A performance appraisal
strategy in which subordinates determine and set goals for themselves based on
the overall goals and objectives for the organization.
Management Development: Training and developmental
programs designed to provide new managers and existing managers with the
resources needed to become more effective in their roles.
Management Rights: Those rights reserved to the
employer to manage, direct, and control its business.
Managing Diversity: The process of creating an
environment that allows all employees to contribute to Organizational goals and
experience personal growth.
Mandated Benefits: Those benefits which employers in
the United States must provide to employees by law.
Mandatory Issues: Those issues that are identified
specifically by labor laws or court decisions as being subiect to bargaining.
Mandatory Retirement Age Law of 1978: A statute which
prohibits employers from having policies or practices that call for mandatory
retirement of employees under the age of 70, (excepting exempted employees or
positions).
Marginal Tax Rate: The percentage of all additional
dollar of earnings that goes to taxes.
Market Price: In HR, the prevailing wage rate paid for
a job in the immediate job market.
Maslow's Heirarchy of Needs: Maslow developed a
hierarchical model for motivation in which basic needs such as physiological
requirements and safety must be satisfied before higher-level needs such as
self-fulfillment are pursued. A satisfied need no longer motivates, and is
replaced by the next higher need.
Maternity leave: Unpaid job-protected leave for the
birth, adoption, or foster care placement of a child. See also The Family and
Medical Leave Act (FLMA).
Mediation: Process by which a third party assists
negotiators in their discussions and also suggests settlement proposals.
Medical Savings Account (MSA): A savings account to
which employers and individuals are allowed to contribute on a pre-tax basis.
Most MSAs allow unused balances and earnings to accumulate and be used the
following year. Most MSAs are combined with a high-deductible or catastrophic
health insurance plan.
Medicare: A health insurance program administered by
the Social Security Administration which is broken into two distinct categories:
1) Medicare Part A helps with hospital costs; and 2) Medicare Part B requires a
monthly fee and is used to pay medical costs for people 65 and older and for
some disabled persons under 65.
Mental Health Parity Act (MHPA) of 1996: Prohibits
group health plans and insurance companies that offer mental health benefits
from setting annual or lifetime limits on mental health benefits lower than the
limits set for any other condition.
Mentor: An experienced, productive senior employee who
helps develop a less-experienced employee.
Mentoring: A relationship in which managers at
midpoints in careers aid individuals in the first stages of careers.
Merit Increase Grid: A grid that combines an employee's
performance rating with that employee's position in a pay range to determine the
size and frequency of his or her pay increases.
Minimum Wage: The lowest amount that employers are
legally allowed to pay; the 1990 amendment of the Fair Labor Standards Act
permits a sub-minimum wage to workers under the age of 20 for a period of up to
90 days.
Minority Business Enterprise (MBE): A small business
enterprise that is at least 51 percent owned by one or more minorities or, in
the case of a publicly owned business, at least 51 percent of all classes or
types of the stock is owned by one or more minorities and whose management and
daily business operations are controlled by one or more minorities.
Mission Statement: A statement illustrating what the
company is, what the company does and where the company is headed.
Moonlighting: Work outside a person's regular
employment that takes 12 or more additional hours per week.
Motivation: The desire within a person causing that
person to act.
Multinational Enterprise (MNE): An organization with
units located in foreign countries.
Myers-Briggs Type Indicator (MBTI): A psychological
test used for team building and leadership development that identifies
employees' preferences for energy, information gathering, decision making, and
life-style.
National Emergency Strike: A strike that would affect
an industry or a major part of it such that the national health or safety would
be impeded.
National Labor Relations Act (NLRA) of 1947: The NLRA
was passed in 1935, providing all employees the right to form, join and assist
labor organizations and to bargain collectively with their employers.
Needs Analysis: Method of analyzing how employee skill
deficits can be addressed through current or future training and professional
development programs.
Negligent Hiring: A legal theory holding employers
responsible for their employees injuries if it can be shown that they did not
make reasonable inquiries into the employee's background and suitability for the
position.
Nepotism: Practice of allowing relatives to work for
the same employer.
Network A combination of desktop computers, computer
terminals, and mainframes or minicomputers that share access to databases and a
method to transmit throughout the system.
New Technologies: Current applications of knowledge,
procedures, and equipment that have not been previously used. Usually involves
replacing labor with equipment, information processing, or some combination of
the two.
Noncontributory Plan: Pension plan in which all the
funds for pension benefits are provided by the employer.
Nondisclosure Agreement: A contract restricting an
employee from disclosing confidential or proprietary information.
Non-Exempt Employees: Employees who must be paid
overtime under the Fair labor Standards Act.
Non-Key Jobs: Jobs that are unique to organizations so
cannot be directly valued or compared through the use of market
surveys.
Normative Forecasting: A method of projecting future
needs in order to determine what developments will be required to meet those
needs.
North American Free Trade Agreement (NAFTA): An
agreement reached by the United States, Canada and Mexico instituting a schedule
for phasing out tariffs and eliminating a variety of fees and other hindrances
to encourage free trade between the three North American countries
Notice: In wrongful discharge cases, this doctrine is
used to determine whether or not an employer gave an employee adequate advance
notice of the potential consequences of failure to improve some specific
behavior or conduct.
Obsolescence: A reduction in an employee's competence
resulting front a lack of knowledge of new work processes, techniques, and
technologies that have developed since the employee completed his or her
education.
Occupational Injury: An injury sustained during the
course of employment, which results in the employee requiring medical treatment
other then minor first aid.
Occupational Safety And Health Act Of 1970 (OSHA): The
law authorizing the federal government to establish and enforce occupational
safety and health standards for all places of employment affecting interstate
commerce.
Occupational Safety and Health Administration (OSHA): A
Department of Labor (DOL) office responsible for overseeing and assuring the
safety and health of America's workers by setting and enforcing standards,
providing training, outreach and education, establishing partnerships and
encouraging continual improvement in workplace safety and health.
Offshoring: The act of moving work to an overseas
location to take advantage of lower labor costs. Offshoring usually involves
manufacturing, information technology and back-office services like call centers
and bill processing. Companies can build their own work center, establish a
foreign division, or create a subsidiary in remote locations.
Older Workers Benefit Protection Act (OWBPA) of 1990:
OWBPA amended the ADEA prohibiting all employers from age discrimination in
employee benefits programs by either providing equal benefits for older and
younger workers or by spending an equal amount on benefits for both groups. It
also provides specifications on the requirements for ADEA waivers.
Ombudsman: A neutral third party that helps individuals
or groups in conflict resolve disputes by mediating, coaching and facilitating
communication between the parties and recommending an appropriate
resolution.
On-the-Job Training: Training provided to employees by
managers and supervisors; conducted at the actual worksite utilizing
demonstration and actual performance of job tasks to be accomplished.
Onboarding: The process of moving a new hire from
applicant to employee status ensuring that paperwork is done, benefits
administration is underway, and orientation is completed.
O*Net (Occupational Information Network): Administered
and sponsored by the U.S. Department of Labor's Employment and Training
Administration, O*NET is a database that replaced the Dictionary of Occupational
Titles (DOT) as the nation's primary source of occupational
information.
Open-Enrollment Period: The period of time designated
by the employer's health or other benefit plan when employees may enroll in new
benefit plans or make changes to existing benefit plans.
Organizational Analysis: A process for determining tile
appropriateness of training.
Organizational Commitment: The degree to which
employees believe in and accept organizational goals and desire to remain with
the organization.
Organizational Development: A planned organization-wide
effort to improve and increase the organizations effectiveness, productivity,
return on investment and overall employee job satisfaction through planned
interventions in the organization's processes.
Organizational Socialization: The process by which new
employees are transformed into effective members of a company .
Organization-Based Model: A career development model
suggesting that careers proceed through a series of stages and that career
development involves employees learning to perform certain activities.
Organization-Centered Career Planning: Career planning
that focuses on jobs and on constructing career paths that provide [Or the
logical progression of people between jobs in an organization.
Orientation: The planned introduction of new employees
to their jobs, coworkers, and the organization.
Outplacement: A benefit offered by the employer to
displaced employees which may consist of services such as job counseling,
training and job-finding assistance.
Outsourcing: A contractual agreement between an
employer and an external third-party provider whereby the employer transfers
responsibility and management for certain HR, benefit or training-related
functions or services to the external provider.
Overtime: In accordance with the Fair Labor Standards
Act (FLSA), it is the term used to define work that is performed in excess of 40
hours per week.
Paid Time Off (PTO): Benefit program granting employees
a specific number of vacation or personal days with pay. The number of days is
generally based on the employer's policy for accrual of paid time off.
Parent Country: The country in which a company's
corporate headquarters is located.
Parent-Country Nationals: Employees who were born and
live in a parent Country.
Pareto Chart: A bar graph used to rank in order of
importance information such as causes or reasons for specific problems, so that
measures for process improvement can be established.
Part-time Employee: An individual who continually works
less than 40 hours per week (standard workweek hours are based on individual
employer policy, therefore, a 40-hour workweek is only a guideline; this number
could be higher or lower).
Pattern Or Practice: A theory of discrimination that
allows plaintiffs to show that all employer intended to discriminate by showing
a statistical disparity between the work force and a relevant comparison group
and that the disparity is the result of some discriminatory motive.
Pay: The basic compensation an employee receives,
usually as a wage or salary.
Pay Adjustment: Any change made to the pay rate of an
employee, such as an increase or decrease to the rate of pay.
Pay Compression: Situation in which pay differences
among individuals with different levels of experience and performance in the
organization become small.
Pay Equity: The concept that the pay for jobs requiring
comparable knowledge, skills, and abilities should be similar even if actual
duties and market rates differ significantly.
Pay Grade: A grouping of individual jobs having
approximately the same job worth.
Pay Level: The average pay, including wages, salaries
and bonuses, of jobs in an organization.
Pay Structure: The relative pay of different jobs (job
structure) and how much they are paid (pay level).
Pay Survey: A collection of data on existing
compensation rates for workers performing similar jobs in other organizations.
Pay-Policy Line: A mathematical expression that
describes the relationship between a job's pay and its job evaluation points.
Pension Benefit Guaranty Corporation: The agency that
guarantees to pay employees a basic retirement benefit in the event that
financial difficulties force a company to terminate or reduce employee pension
benefits.
Pension Plan: An employer benefit plan funded through
insurance, a trust, general assets or other separately maintained funds designed
to provide employees with a monthly income benefit upon retirement.
Performance Appraisal: A periodic review and evaluation
of an individual's job performance compared with a set of standards, and the
communication of that information to the employee.
Performance-based Pay: A variable pay strategy that
pays employees based on their individual performance and contributions, rather
than the value of the job they are performing.
Performance Criteria: Standards commonly used for
testing or measuring performances.
Performance Feedback: The process of providing
employees with information regarding their performance effectiveness.
Performance Management: The process of maintaining or
improving employee job performance through the use of performance assessment
tools, coaching and counseling. Continuous feedback is a large part of
performance management.
Performance Management Systems: Processes to monitor,
measure, report, improve, and reward employee performance.
Performance Monitoring: The practice of monitoring
employees while they perform their jobs through the use of surveillance cameras,
telephone or computer monitoring.
Performance Planning And Evaluation (PPE): Any system
that seeks to tie the formal performance appraisal process to the company's
strategies by specifying at the beginning of the evaluation period the types and
level of performance that must be accomplished in order to achieve the strategy.
Performance Standard: The expected level of
performance.
Perquisites (Perks): Special benefits, usually non-cash
items for executives.
Person Analysis: A process for determining whether
employees need training, who needs training, and whether employees are ready for
training.
Personnel Selection: The process by which companies
decide who will or will not be allowed into their organization.
Piece-Rate System: A productivity-based compensation
system in which an employee is paid for each unit of production.
Plan Sponsor: An entity that has adopted and has
maintained an employee-benefit plan. The plan sponsor is often an employer, but
may be a union or a professional association. The Plan Sponsor is responsible
for determining employee participation and the amount of benefits
involved.
Plateauing: A career development stage in which the
likelihood is low that the employee will receive future job assign merits with
increased responsibility.
Point of Service Plan (POS): Insurance plan that offers
an approved network of medical care facilities and physicians from which policy
holders may select (similar to HMOs and PPOs); however, though use of facilities
and physicians within the network is encouraged, the POS also allows
policy holders to receive their medical care outside of the network.
Portability: A pension plan feature that allows
employees to move their pension benefit from one employer to another.
Position: A job performed by one person.
Predictive Validation: A criterion-related study that
seeks to establish an empirical relationship between applicants' test scores and
their eventual performance on the job.
Preferred Provider Organization (PPO): A group of
health-care providers who contract with employers, insurance companies, and so
forth to provide health care at a reduced fee.
Pregnancy Discrimination Act Of 1978: An amendment to
Title VII of the Civil Rights Act of 1964. Discrimination on the basis of
pregnancy, childbirth or related medical conditions constitutes unlawful sex
discrimination under Title VII. The law requires employers offering disability
plans to treat pregnancy as they would any other disability.
Pre-Retirement Socialization: The process of helping
employees prepare for exit from work.
Principal:In agency theory, the owner of a business; in
human resource management, may refer to a manager.
Probation: Used as a form of discipline, it is a
specified period of time during which an individual's performance or conduct is
closely monitored.
Procedural Justice: The perceived fairness of the
process and procedures used to make decisions about employees, including their
pay.
Production Cells: Groupings of workers who produce
entire products or components of products.
Productivity: A measure of the quantity and quality of
work done, considering the cost of the resources it took to do the
work.
Professional Employer Organization (PEO): A staffing
service that is contracted to assume the employers responsibilities and risk for
his/her workforce. Employees are legally co-employed by the PEO, and as such,
the PEO shares employer liabilities with the client company.
Profit Sharing: A group compensation plan in which
payments are based on a measure of organization performance (profits) and do not
become part of the employees' base salary.
Promotion: Advances into positions with greater
challenge, more responsibility, and more authority than the employee's previous
job.
Protected Class: Legally identified groups (defined by
age, color, creed, disability, national origin, race, religion, sex, sexual
orientation, or veteran status) that are specifically protected by statute
against employment discrimination.
Prima Facie Case: Latin for "at first view" or "at
first appearance," a prima-facie case is a lawsuit that requires an employer to
articulate a reason that sufficiently proves that any decision or action taken
was made based on legitimate and nondiscriminatory factors.
Probationary Period: A specified period of time
(typically 30-90 days) when a newly hired, promoted or transferred employee's
job performance is evaluated. Primarily used by supervisors to closely observe
an employee's work and to reject any employee whose performance does not meet
required standards.
Psychological Contract: The unwritten expectations that
employees and employers have about the nature of their work relationships.
Psychological Testing: Written, visual or verbal
assessment administered to determine cognitive and emotional skills.
Qualified Retirement Plan: A plan that meets the
requirements of Internal Revenue Code Section 401(a) and ERISA and is thus
eligible for favorable tax treatment.
Quality Circle: A carefully selected group of employees
who voluntarily meet on a regular basis to identify problems and make
recommendation by using various techniques for analyzing and solving
work-related problems.
Quid Pro Quo Harassment: Quid pro quo harassment
involves expressed or implied demands for sexual favors from a subordinate in
exchange for some benefit (a promotion, pay increase, etc.) or to avoid some
detriment (termination, demotion, etc.) in the workplace.
Quota System: In affirmative action systems, it is a
means of attempting to achieve workplace balance by hiring and/or promoting
specified numbers or ratios of minorities or women in positions from which they
have been excluded.
Range Spread: The distance between the minimum and
maximum amounts in a pay grade
Rank-and-yank: When all employees are evaluated, the
rank-and-yank philosophy calls for the bottom 10% of employees to be terminated
each year, allowing an organization to constantly purge the lowest performers.
Ranking: Listing of all employees from highest to
lowest in performance.
Rater Bias: Error that occurs when a rater's values or
prejudices distort the rating.
Ratification: Process by which union members vote to
accept the terms of a negotiated labor agreement.
Realistic Job Preview: The process through which an
interviewer provides a job applicant with an accurate picture of a job.
Reasonable Accommodation: Modifying or adjusting a job
process or a work environment to better enable a qualified individual with a
disability to be considered for or perform the essential functions of a
job.
Reasoning Ability: Refers to a person's capacity to
invent solutions to many diverse problems.
Reassignment: Transferring individuals to alternative
positions where their talents or skills may be best utilized to their own or the
organization's benefit or where they are better able to perform the job in
accordance with required standards.
Recency Effect: An error whereby the rater gives
greater weight to recent occurrences when appraising an individual's
performance.
Recruiting: Process of generating a pool of qualified
applicants for organizational jobs.
Recruitment: Soliciting and actively seeking applicants
to fill recently vacated or newly created positions using a variety of methods
(i.e., internal job postings, advertising in newspapers or electronic job
boards/sites, utilizing search firms or listing position with trade and
professional associations, etc).
Recruitment Process Outsourcing (RPO): The outsourcing
of the recruiting process to a third party.
Red-Circled Employee: An incumbent who is paid above
the maximum range assigned to the job grade. Usually employees are ineligible
for additional pay increases before range maximums exceed the individual pay
rate.
Reengineering: Review and redesign of work processes to
make them more efficient and improve the quality of the end product or
service.
Referrals: People who are prompted to apply for a job
by someone within the organization.
Rehabilitation Act of 1998: A federal statute requiring
federal agencies to ensure that electronic and information technology systems
are accessible to individuals with disabilities when their jobs require the use
of electronic or information technology systems.
Reinforcement: A concept based on the law of effect,
which states that people tend to repeat responses that give them some type of
positive reward and avoid actions that are associated with negative
consequences.
Relational Database: A database structure that stores
information in separate files that can be linked by common elements.
Reliability: The consistency with which a test measures
an item.
Religious Accommodation: An accommodation made for an
employee, such as time off from work, so that he or she may observe a religious
holiday or attend a religious ceremony or their day of Sabbath such as Saturday
or Sunday.
Repatriation: The process of bringing expatriates home.
Request for Proposal (RFP): A document an organization
sends to a vendor inviting the vendor to submit a bid for a product or service.
Resident Alien: A resident alien is a lawful permanent
resident of the United States at any time if he or she has been given the
privilege, according to the immigration laws, of residing permanently as an
immigrant. This status usually exists if the Bureau of Citizenship and
Immigration Services have issued a green card.
Responsibilities: Obligations to perform certain tasks
and duties.
Restrictive Covenant: A contract clause requiring
executives or other highly skilled employees to refrain from seeking and
obtaining employment with competitor organizations in a specific geographical
region and for a specified period of time.
Retaliation: Punitive actions taken employers against
individuals who exercise their legal rights.
Retirement: Leaving a job and work role and making a
transition into life without work.
Return on Investment (ROI): A ratio of the benefit or
profit derived from a specific investment, compared with the cost of the
investment itself.
Reverse Discrimination: Employment policies or
practices that result in discriminatory treatment against applicants or
employees who are not minorities or members of a disadvantaged group.
Rightsizing: An approach to reducing staff, where jobs
are prioritized in order to identify and eliminate unnecessary work. This method
uses a selection criteria based on individual jobs, as opposed to people, in
order to avoid possibly laying off the wrong employees.
Right-to-Know: An OSHA standard providing workers with
protection from hazardous substances in the workplace by requiring employers to
keep employees informed of any hazardous substances that they may be working
with, as well as the hazards and symptoms associated with the substance.
Right-to-Work Laws: State laws that make union shops,
maintenance of membership, and agency shops illegal.
Risk Management: The use of insurance and other
strategies to minimize an organizations exposure to liability in the event a
loss or injury occurs.
Role Analysis Technique: A method that enables a role
occupant and other members of the role occupant's role set to specify and
examine their expectations for the role occupant.
Role Behaviors: Behaviors that are required of an
individual in his or her role as a job holder in a social work environment.
Rural Sourcing: An outsourcing method that is based on
transferring jobs away from higher cost urban areas to lower cost rural
ones.
S Corporation: Business enterprise allowed by the IRS
for most companies with 75 or fewer shareholders, enabling the company to enjoy
the benefits of incorporation while being taxed as if it were a
partnership.
Sabbatical: A voluntary arrangement whereby an employer
allows an employee paid or unpaid leave for a specified duration of time in
order for the employee to pursue a course of advanced training, teach or perform
a public service.
Safety: Condition in which the physical well being of
people is protected.
Safety Awareness Programs: Employer programs that
attempt to instill symbolic and substantive changes in the organization's
emphasis on safety.
Salary: Payment that is consistent from period to
period despite the number of hours worked.
Sarbanes-Oxley Act of 2002: The Sarbanes-Oxley Act of
2002 was enacted to increase accountability of corporations to their
shareholders in the wake of recent accounting scandals.
Savings Incentive Match Plan for Employees of Small
Businesses (SIMPLE): SIMPLE plans are authorized by the Small Business Job
Protection Act of 1996. They give businesses with 100 or fewer employees an
affordable way to offer retirement benefits through employee salary reductions
and matching contributions (similar to those found in a 401(k) plan).
Scanlon Plan: A gainsharing program in which employees
share in specific cost savings that are due to employee effort.
Scientific Management: A human resource management
theory developed in 1911 that emphasized identifying employees who had the
appropriate skills and abilities to perform certain tasks, providing wage
incentives to employees for increased productivity, providing employees with
rest breaks, and carefully studying jobs to identify the best method for
performing a job.
Screening: Usually the first step taken during the
interviewing process, involving reviewing prospective candidate
applications/resumes, verifying information supplied by the candidate,
conducting interviews and examining test results.
Search Engine Optimization (SEO): The process of
optimizing a web site (e.g., identifying and placing targeted keywords on web
pages) to ensure the site places well when queried on search engines. It is
important for corporate web sites to optimize their visibility on search
engines.
Search Firms: An organization or individual consultants
working on a retainer or fee basis who provide the service of searching and
screening potential professional or managerial candidates for prospective
employers.
Section 401(k) Plan:A retirement plan named after the
tax code provision that allows employees to defer compensation on a pretax
basis.
Security: Protection of employer facilities and
equipment from unauthorized access, and protection of employees while on work
premises or work assignments.
Selection: The process by which an organization
attempts to identify applicants with the necessary knowledge, skills, abilities,
and other relevant qualifications to fill jobs in an organization.
Selection Criteria: Standards that become the basis for
selection.
Selection Interview: Interview designed to assess
Job-related knowledge, skills, and abilities (KSAs) and clarify information from
other sources.
Selection Ratio: The percentage of people selected
versus the total number of applicants that apply for a vacancy.
Self-Directed Learning: A program in which employees
take responsibility for all aspects of learning.
Self-Directed Work Team: An organizational team
composed of individuals who are assigned a cluster of tasks, duties, and
responsibilities to be accomplished.
Self-Efficacy:The employee's belief that she/he can
successfully learn the content of a training program.
Self-Employed: An individual who has earned income for
the current or preceding year from self-employment, within the meaning of I.R.C.
§401(c) (2), or an individual who would have had such income, except for the
fact that the relevant business did not incur a profit for the year.
Semi-skilled Worker: Persons with the ability to read,
write and communicate but are usually not required to have educational or
apprenticeship credentials to qualify for jobs. Training time is short, task
specific and generally doesn't require much in terms of reasoning skills.
Seniority: Status determined by the length of time an
employee has worked for a specific employer, department or position within the
organization.
Serious Health Condition: A health condition requiring
inpatient, hospital, hospice, or residential medical care or continuing
physician care.
Severance Pay: A form of short-term salary continuation
voluntarily awarded to employees who are being terminated. Severance payments
often equal one week's pay for each year of service.
Sex Discrimination: Discriminatory conduct or actions
based on sex or pregnancy, as it relates to conditions of employment, benefits,
pay and opportunities for advancement.
Sexual Harassment: Actions that are sexually directed,
are unwanted, and subject the worker to adverse employment conditions or create
a hostile work environment.
Situational Constraints: Factors in the work
environment that affect a trainee's motivation to learn.
Situational Interview: An interview procedure where
applicants are confronted with specific issues, questions, or problems that are
likely to arise on the job.
Skill-Based Pay: See Knowledge-based Pay.
Social Support: The willingness of managers and peers
to provide a trainee with feedback and reinforcement.
Sourcing: The developing of lists of potential
candidates. Also relates to the task of requisitioning, or creating job
descriptions, approval workflows and actual job postings. Most e-recruitment
software providers include modules for requisitioning.
Special-Purpose Team: An organizational team that is
formed to address specific problems and may continue to work together to improve
work processes or the quality of products and services.
Specificity: The extent to which a performance measure
gives detailed guidance to employees about what is expected of them and how they
can meet these expectations.
Standard Deviation Rule: A rule used to analyze
employment tests to determine disparate impact; it uses the difference between
the expected representation for minority groups and the actual representation to
determine whether the difference between the two is greater than would occur by
chance.
Standard Error Of Measure: The average unsigned error
of measurement in a series of measurements of the same element.
Standard Occupational Classification (SOC): Used by
Federal statistical agencies to classify workers into occupational categories
for the purpose of collecting, calculating, or disseminating data. All workers
are classified into one of over 820 occupations according to their occupational
definition. To facilitate classification, occupations are combined to form 23
major groups, 96 minor groups, and 449 broad occupations. Each broad occupation
includes detailed occupation(s) requiring similar job duties, skills, education
or experience.
Statutory Rights: Rights based on laws.
Stock Option: A plan that gives an individual the right
to buy stock in a company, usually at a fixed price for a period of
time.
Straight Piece-Rate System: A pay system in which wages
are determined by multiplying the number of units produced by the piece rate for
one unit.
Strain-Based Conflict: A type of work-family conflict
that results from the stress of work and family roles.
Strategic Alliance: A cooperative business agreement
between two or more companies (which may include suppliers, customers, or
competitors) designed to accomplish participating companies' strategic
objectives through pursuing a common business goal.
Strategic Choice: The organization's strategy, the ways
ail organization will attempt to fulfill its mission and achieve its long-term
goals.
Strategic Congruence: The extent to which the
performance management system elicits job performance that is consistent with
the organization's strategy, goals, and culture.
Strategic Human Resource Management: A pattern of
planned human resource deployments and activities intended to enable ail
organization to achieve its goals.
Strategy Formulation: The process of deciding on a
strategic direction by defining a company's mission and goals, its external
Opportunities and threats, and its internal strengths and weaknesses.
Strategy Implementation: The process of devising
structures and allocating resources to enact the strategy a company has
chosen.
Strike: Work stoppage in which union members refuse to
work in order to put pressure on an employer.
Structured Interview: Interview that uses a set of
standardized questions asked of all job applicants.
Substance Abuse: The use of illicit substances or the
misuse of controlled substances, alcohol, or other drugs.
Succession Planning: The long-term grooming of a small
number of replacements for top executives, typically with one replacement per
position.
Suggestion System: A formal method of obtaining
employee input and upward communication.
Summary Plan Description: A reporting requirement of
the Employee Retirement Income Security Act (ERISA) that obligates employers to
describe the plan's funding, eligibility requirements, risks, and so forth
within 90 days after an employee has entered the plan.
Supply Flow: The places where a company prefers to
obtain the human resources to fill open positions.
SWOT Analysis: A strategic planning tool used to
collect and evaluate information on an organization's current Strengths,
Weaknesses, Opportunities and Threats involved in a specific project or business
venture.
Taft-Hartley Act: The 1947 act that outlined unfair
union labor practices.
Task: A distinct, identifiable work activity composed
of motions.
Task Analysis: The process of identifying the tasks,
knowledge, skills, and behaviors that need to be emphasized in
training.
Tax Equalization Plan: Compensation plan used to
protect expatriates from negative tax consequences.
Technique Of Operations Review: Method of determining
safety problems via an analysis of past accidents.
Telecommuting: The process of going to work via
electronic computing and telecommunications equipment.
Theory Y Management: A management philosophy that
suggests that employees will contribute to company goals if they are given the
opportunity to participate in decisions concerning their job and to take
responsibility for their work.
Third Country: A country other than a host or parent
country.
Third-Country National: Employees born in a country
other than a parent or host country.
360-Degree Feedback Process: A performance appraisal
process for managers, that includes evaluations from a wide range of persons who
interact with the manager. The process includes self-evaluations as well as
evaluations from the manager's boss, subordinates, peers, and customers.
Time-Based Conflict: A type of work-family conflict
that occurs when the demands of work and family interfere with each other.
Tin Parachutes: Relatively small amounts of monetary
compensation given to employees dismissed as a consequence of a merger or
acquisition.
Total Compensation: The activity by which organizations
evaluate the contributions of employees in order to distribute direct and
indirect monetary and non-monetary rewards fairly within the organization's
ability to pay and within legal regulations.
Total Quality Management (TQM): A comprehensive
management process focusing on the continuous improvement of organizational
activities to enhance the quality of the goods and services supplied.
Training: A learning process whereby people acquire
skills or knowledge to aid in the achievement of goals.
Training And Development: Any attempt to improve
current or future employee performance by increasing an employee's ability to
perform through learning. It can be accomplished by changing the employee's
attitudes or increasing his or her skills or knowledge.
Training Objectives: Statement of what the employee is
expected to do, the quality or level of performance, and conditions under which
the trainee is expected to perform.
Training Outcomes: A way to evaluate the effectiveness
of a training program based on cognitive, skill-based, affective, and results
outcomes.
Transaction Processing: Computations and calculations
used to review and document HR decisions and practices.
Transfer: The movement of an employee to a different
job assignment in a different area of the company.
Transfer Of Training:The use of knowledge, skills, and
behaviors learned in training on the job.
Transnational Process: The extent to which a company's
planning and decision-making processes include representatives and ideas from a
variety of cultures.
Transnational Representation: Reflects the
multinational composition of a company's managers.
Transnational Scope: A company's ability to make HR
decision from all international perspective.
TRASOP: The Tax Reduction Act Employee Stock Ownership
Plans of 1975.
True Negatives: Correct predictions that applicants
will perform poorly, who in fact do perform poorly.
True Positives: Correct predictions that applicants
will perform well, who in fact perform successfully.
Turnover: Process in which employees leave the
organization and have to be replaced.
Talent Management:: The implementation of an integrated
strategies or systems designed to increase workplace productivity by developing
improved processes for attracting, developing, retaining and utilizing people
with the required skills and aptitude to meet current and future business
needs.
Team Building: A training program designed to assist a
group of people to work together as a team while they are learning and
performing tasks.
Temp-to-Perm: The process of hiring employees on a
temporary basis, usually through a temporary staffing agency, with the
understanding that if the individual's performance meets or exceeds
expectations, he or she will be offered a permanent position within the
organization.
Temporary Employee: An individual who works on either
short- or long-term assignments with an employer while lacking the benefits of
permanent employees. They are normally utilized by employers to meet seasonal or
other demands that they do not have the internal resources to meet.
Theory X Management: Theorizes that some people have an
inherent dislike for work and will avoid it whenever possible. These people need
to be controlled and coerced by their managers to achieve production.
Think Tank: A group organized for the purpose of
intensive research and problem solving, especially in the areas of technology,
social or political strategy, or demographics.
Third-Party Sexual Harassment: Harassment of an
employee by someone other than another employee, such as a client, customer,
vendor or service provider.
Title VII of the Civil Rights Act of 1964: Pertaining
to organizations with at least 15 employees, Title VII is a provision of the
Civil Rights Act that prohibits discrimination in virtually every employment
circumstance on the basis of race, color, religion, gender, pregnancy or
national origin.
Trade Secret: A trade secret consists of any formula,
pattern, device or compilation of information used in one's business, which
gives the business an opportunity to obtain an advantage over competitors who do
not know or use it.
Training Needs Analysis: A method used to determine
what people need to learn and which training programs may be beneficial. The
analysis produces a training needs report that identifies training needs and the
interventions needed to reduce key performance gaps.
Transformational Leadership: A form of leadership
focusing on change and innovation. The transformational leader is the leader who
is able to energize, align, and excite followers by providing a compelling
vision of the future.
Trend Analysis: Forecasting an organization's staffing
needs by analyzing past employment patterns in order to identify trends that may
be expected to continue.
Turnover Costs: The practice of transferring problem or
performance-challenged employees from one position or department to another with
the expectation that the employee may improve under a new supervisor or in a
different work atmosphere.
Uncertainty: A lack of predictability or an inability
to tell what things are or will be like; a state of unpredictability.
Unemployment Insurance: A statutory benefit that
provides a weekly income during short periods of unemployment to workers who
have been laid off. The system is run and funded by state and federal taxes paid
by employers.
Underutilization: (i.) The situation when individuals
possess skills and/or training exceeding their current job responsibilities.
(ii.) The situation when the percentage of representation of a protected group
in the workforce, occupational category, job group or job classes is less than
the percentage of such persons available in the base.
Underwriter: A person or organization (e.g. an
insurance company) that ensures money will be available to pay for insured
losses.
Undue Hardship: Condition created when making a
reasonable accommodation for individuals with disabilities would pose
significant difficulty or expense for an employer.
Unfair Labor Practice (ULP): An unfair labor practice
(ULP) is a violation of a right protected by the Federal Service
Labor-Management Relations Statute. The ULP procedures provided by the Statute
are part of the basic mechanisms by which the parties are protected in the
exercise of their rights.
Unfair Recognition: Breach of duty by a union to
represent fairly all employees covered by the union management
contract.
Unfunded: Pension programs established on the goodwill
of the employer rather than on money to be used to pay pension obligations.
Uniformed Services Employment and Reemployment Rights Act
of 1994 (USERRA): A statute that minimizes the disadvantages to an
individual that can occur when that person needs to be absent from his or her
civilian employment in order to serve in the military.
Union: A formal association of workers, promoting the
interests of its members through collective action, having legal authority to
negotiate with the employer on behalf of the employees and to administer the
ensuing agreement.
Union Authorization Card: Card signed by an employee to
designate a union as his or her collective bargaining agent.
Union Instrumentality: The degree to which union
membership can result in obtaining valued outcomes such as pay raises.
Union Local: The grass-roots unit of the labor
organization that represents the employees who are in the same union unit at a
given workplace.
Union Security Provisions: Contract provisions to aid
the union in obtaining and retaining members.
Union Shop: A provision in about thirty states that if
the company has a union, employees must join within a set period of time
following initial employment (usually 30 to 60 days).
Union Steward: An employee of a firm or organization
who is elected to serve as the first-line representative of unionized
workers.
Unionization or Unionizing: The effort by employees and
outside agencies (unions and associations) to band together and act as a single
unit when dealing with management over issues related to their work.
Unit Labor Cost: The total labor cost per unit of
output: the average wages of workers divided by their levels of productivity.
Unqualified Pension Plan: A plan not set up under the
guidelines of ERISA.
Upward Feedback: A performance appraisal process for
managers that includes Subordinates' evaluations.
U.S. Citizenship and Immigration Services (USCIS): The
USCIS is responsible for the administration of immigration and naturalization
adjudication functions and establishing immigration services policies and
priorities.
Utility: The degree to which the information provided
by selection methods enhances the effectiveness of selecting personnel in real
organizations.
Utility Analysis: An assessment of the dollar value of
training based on the difference in job performance between trained and
untrained employees, the number of individuals trained, the length of time
training is expected to influence performance, and the variability in job
performance among untrained employees.
Utilization Analysis: An analysis that identifies the
number of protected-class members employed and the types of jobs they bold in an
organization.
Utilization Review: An audit and review of the services
and costs billed by health-care providers.
Valence: The level of satisfaction a job applicant
expects to receive from a job that ranks high in some attribute.
Valid Predictor: Any test used for staffing that
predicts or correlates with actual job performance.
Validity: The degree to which a predictor or criterion
measures what it purports to measure or demonstrates the job-relatedness of a
test by showing how well an applicant will perform based on the test
predictions.
Validity Generalization: Demonstrating that the
jobrelatedness or validity of one test in one situation applies equally to other
situations.
Vanishing Performance Appraisal: When the giving and
receiving of performance appraisal feedback is no longer a pleasant experience,
it is avoided and just vanishes.
Verbal Comprehension: Refers to a person's capacity to
understand and use written and spoken language.
Vertical Loading: Adding duties to a job that are
different from those already in the job and that require different skills,
knowledge, and abilities.
Vested: Pertains to qualifications required to become
eligible for an organization's pension benefits.
Vesting: The right of employees to receive benefits
from their pension plans.
Veterans Benefit Improvement Act of 2004: Amended
portions of USERRA, imparting certain reemployment and benefit protections to
employees engaged in military service. Requires that employers extend the period
for health care coverage and provide covered employees with appropriate notice
of their rights, benefits and responsibilities under USERRA.
Virtual HR: The use of technology to provide HR
programs via an employee self-service platform. Typically includes use of such
items as voice response systems, employee kiosks, etc.
Virtual Reality: Computer-based technology that
provides trainees with a three-dimensional learning experience. Trainees operate
in a simulated environment that responds to their behaviors and
reactions.
Virus: A destructive, unauthorized code that someone
has intentionally built into a piece of hardware or software.
Vocational Rehabilitation Act of 1973: Requires federal
contractors to take the affirmative action of employing and promoting qualified
handicapped persons.
Voluntary Benefits: Benefits paid for by the employee
through payroll deductions with the employer paying for administration (e.g.
life insurance, dental, vision).
Voluntary Leave: Leave without pay that is taken on a
voluntary basis by employees for specified duration, often used as an
alternative to layoff.
Voluntary Reduced Working Time: An alternative work
schedule that allows employees to voluntarily agree to reduce their work time
and pay.
Wage and Salary Administration: The activity involved
in the development, implementation, and maintenance of a base pay
system.
Wage Surveys: Published reports of what several
different companies are paying for different types of jobs.
Wage-Dividend Plans: A special type of cash plan where
the percentage of profits paid to employees is determined by the amount of
dividends paid to stockholders.
Wages: Payments directly calculated on the amount of
time worked.
Undue Hardship: Condition created when making a
reasonable accommodation for individuals with disabilities would pose
significant difficulty or expense for an employer.
Wagner Act: The major comprehensive labor code enacted
in 1935, also know as the National Labor Relations Act, intended by Congress to
restore equality of bargaining power between labor and management.
Weighted Application Blank: An application blank in
which varying importance or weights (as a predictor of future success) is
accorded the various responses.
Weighted Checklist: Identical to a critical incidents
format but with various points to differentiate the varying importance of
different incidents.
Welfare-to-Work Tax Credit: A federal income tax credit
that encourages employers to hire long-term family assistance recipients, who
begin to work any time after December 31, 1997, and before January, 2004.
Established by the Taxpayer Relief Act of 1997, the tax credit can reduce
employers' federal tax liability per new hire.
Wellness Programs: Programs designed to maintain or
improve employee health before problems arise.
Wellness Tests: Health assessments of employees that
include measures of blood pressure, blood cholesterol, high density cholesterol,
skin fold evaluation of diet, life-change events, smoking, drinking, and family
history of chronic heart disease.
Well-Pay: Extra pay for not taking sick
leave.
Whipsaw: The process where unions use one contract
settlement as a precedent for the next and force the employer to settle all
contracts before work is resumed.
Wide-Area and Multi-Craft Bargaining: A negotiating
structure that exists in the construction industry where several separate
construction unions may settle with a contractor together.
Wildcat Strike: An illegal strike (forbidden by
contract).
White-Collar Employees: Employees who are paid on a
salaried basis and whose jobs do not require the performance of work of a manual
nature. Such individuals are normally employed in the capacity of managers,
supervisors, or technical workers and meet the criteria of the FLSA white collar
exemption test.
Work/Life Employee Benefits: There are over 100
varieties of work/life benefits. Most make employees' lives outside of work more
convenient and free up their time. Some accomplish this by reducing the number
of things employees need to worry about and take care of, reducing stress and
saving time. Other work/life programs provide counseling and support services.
Many give employees choices — e.g., in the benefits they receive, and when and
from where they work — and extra time off to spend however they wish. The
commonality is that work/life benefits make employees' non-work lives better, so
that their working lives are less distracted and more productive — and employees
become more committed and loyal to the organization.
Work Measurement: The determination of standard times
for all units of work activity in any task. Includes the assessment of "actual
effort" exerted and the "real effort" required to accomplish a task.
Work Pacing: Refers to the rate or flow of work and who
controls the rate or flow.
Work Sample Test: A test that consists of an actual
simulation of the job or critical tasks associated with the job. An example
would be a typing test used to select a secretary.
Work Sampling: The process of taking instantaneous
samples of the work activities of individuals or groups of individuals.
Activities are then timed and classified according to predetermined categories.
The result is a description of the activities by classification of a job and the
percentage of time for each activity.
Workers Adjustment and Retraining Notification Act (WARN)
of 1988: WARN requires employers (with 100 or more employees) that are
planning a plant closing or a mass layoff to give affected employees at least 60
days' notice of such an employment action. Not all plant closings and layoffs
are subject to the Act.
Workers' Compensation: State laws enacted to provide
workers with protection and income replacement benefits due to an illness or
injury suffered on the job. Employers must carry appropriate workers'
compensation insurance, as required by state law, or have a sufficient source of
funding for claims incurred.
Workers' Compensation Insurance: A health insurance
program offered by an employer to cover (compensate for) worker sickness and
disability.
Work-Flow Design: The process of analyzing the tasks
necessary for the production of a product or service and allocating these tasks
to particular work units or individuals.
Workers' Compensation: State laws enacted to provide
workers with protection and income replacement benefits due to an illness or
injury suffered on the job. Employers must carry appropriate workers'
compensation insurance, as required by state law, or have a sufficient source of
funding for claims incurred.
Workforce Investment Boards (WIBs) Regional entities
were created to implement the Workforce Investment Act of 1998 in the United
States. The WIB's main role is to direct federal, state and local funding to
workforce development programs. WIBs conduct and publish research on these
programs and the needs of the local job market. They also oversee "one-stop"
career centers, where job seekers can investigate about various programs in
their area.
Workforce Planning: The assessment of the current
workforce in order to predict future needs, both demand and supply.
E-recruitment software often includes modules for workforce planning.
Workforce Utilization Review: A comparison of the
proportion of workers in protected subgroups with the proportion that each
subgroup represents in the relevant labor market.
World Wide Web: Service on the Internet that provides
browser software allowing the user to explore the items (home pages) on the
Web.
Written Warning: Written documentation given to an
employee describing specific disciplinary infractions, such as inappropriate
conduct, poor performance or violation of work rules/policies.
Wrongful Discharge: The unjust or unfair termination of
an employee based on breach of a written or oral implied contract or a violation
of public policy.
Yellow-Dog Contracts: Contracts, signed by employees
upon employment, agreeing not to join a union.
Yield Ratios: The percentage of applicants who
successfully move from one stage of the recruitment and selection process to the
next.
Zero-Balance Reimbursement Account or Zebra Plan: A
flexible spending plan in which no money is set aside initially, but employees
are reimbursed for some expenses as they occur.
Zero-Based Budgeting (ZBB): A system that starts with
no initially authorized funds. In a zero-based budget, each activity or program
to be funded must be justified every time a new budget is prepared and resources
are allocated accordingly.
Zone of Employment: The physical area within which
injuries to an employee are compensable by workers' compensation
laws.