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CLM Human Resource Terms (Mathis Book)
General Human Resource Terms and Concepts
357
Business
Graduate
11/10/2013

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Term
Human Resource Management
Definition
Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.
Term
Core Competency
Definition
A unique capability that differentiates an organization from its competition.
Term
Human Capital
Definition
The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization.
Term
Organizational Culture
Definition
The shared values and beliefs in an organization.
Term
Hofstede's five dimensions useful in identifying and comparing cultures.
Definition
1) Inequality of Power, 2) Individualism/group orientation, 3) Masculinity/femininity, 4) Uncertainty avoidance, and 5) Long-term/Short-term orientation
Term
Productivity
Definition
Measures the quantity and quality of work done, considering the cost of the resources used.
Term
Unit Labor Cost
Definition
Computed by dividing the average cost of workers by their average levels of output.
Term
HR management efforts designed to enhance organizational productivity.
Definition
1) Organizational restructuring, 2) Redesigning work, 3) Aligning HR activities, and 4) Outsourcing analyses.
Term
Sustainability
Definition
Being able to continue to operate, survive, and adjust to significant changes.
Term
Employee Engagement
Definition
The extent to which employees feel linked to organizational success and how the organization performs positively.
Term
4 Elements, when present, that are likely to produce and ethical organization.
Definition
1) A written code of ethics and standards of conduct,, 2) Training on ethical behavior for all executives, managers and employees, 3) Advice to employees on ethical situations they face, often given by HR, and 4) Systems for confidential reporting of ethical misconduct or questionable behavior
Term
Expatriate
Definition
A citizen of one country who is working in a second country and employed by an organization headquartered in the first country.
Term
Host-country national
Definition
A citizen of one country who is working in that country an employed by an organization headquartered in a second country.
Term
Third-country national
Definition
A citizen of one country who is working in a second country and employed by an organization headquartered in a third country.,
Term
Human Resource Management System
Definition
An integrated system providing information used by HR management in decision making.
Term
Two major purposes served by the expansion of HR technology in an organization.
Definition
1) To improve the efficiency with which data on employees and HR activities are compiled, and 2) having accessible data to enable HR planning an managerial decision making based upon information rather then management perceptions and intuition.
Term
HR Generalist
Definition
A person who has responsibility for performing a variety of HR activities.
Term
HR Specialist
Definition
A person who has in-depth knowledge and expertise in a limited area of HR.
Term
Ways to group HR Management activities.
Definition
1) Strategic HR management; 2) equal employment opportunity; 3) staffing; 4) talent management; 5) compensation and benefits; 6) health, safety & security; and 7) employee and labor relations.
Term
Three Roles HR Management must fill.
Definition
1) Administrative, 2) operational and employee advocate, and 3) strategic
Term
Strategy
Definition
An organization's proposition for how to compete successfully and thereby survive and grow.
Term
Strategic Planning
Definition
The process of defining organizational strategy and allocating resources toward its achievement.
Term
Organizational Mission
Definition
The core reason for the existence of the organization and what makes it unique.
Term
Strategic HR Management
Definition
The use of employees to gain and maintain a competitive advantage.
Term
Six primary strategic competencies critical for HR professionals
Definition
1) Credible activist, 2) Culture and change steward, 3) Talent Manager / organization designer, 4) Strategy architect, 5) Operational executor, and 6) Business ally.
Term
Effectiveness
Definition
The ability to produce a specific desired effect or result that can be measured.
Term
Efficiency
Definition
The degree to which operations are don in an economical manner.
Term
Environmental scanning
Definition
The assessment of internal and external conditions that affect the organization.
Term
Succession planning
Definition
The process of identifying a plan for the orderly replacement of key employees
Term
External environment factors
Definition
1) Economic conditions,, 2) Legislative / political influences, 3) demographic changes and 4) geographic and competitive concerns
Term
Multinational Corporation
Definition
A corporation that has facilities and other assets in at least one country other than its home country.
Term
Offshoring
Definition
the relocation by a company of a business process or operation from one country to another.
Term
Due diligence
Definition
A comprehensive assessment of all aspects of the business being acquired.
Term
Four important factors in changing culture.
Definition
1) Define the desired behavior, 2) Deploy role models, 3) Provide meaningful incentives, and 4) Provide clear and consistent messages.
Term
Attrition
Definition
Occurs when workers quite, die or retire and are not replaced.
Term
Severance Benefits
Definition
Temporary payment made by laid-off employees to ease the financial burden of unemployment
Term
Alternative work arrangement
Definition
Nontraditional schedules that provide flexibility to employees
Term
Outsourcing
Definition
Transferring the management and performance of a business function to an external service provider
Term
Business process reengineering (BPR)
Definition
A fundamental rethinking of business process to achieve dramatic improvements in cost, quality, speed, and service.
Term
Electronic human resource management systems (e-HRM)
Definition
The planning, implementation, and application of information technology to perform HR activities.
Term
HR Metrics
Definition
Specific measures tied to HR performance indicators.
Term
Benchmarking
Definition
Comparing the business results to industry standards
Term
Balanced scorecard
Definition
A framework used to report a diverse set of performance measures.
Term
Four areas of performance measured by the balanced scorecard
Definition
1) Financial measures, 2) internal business processes, 3) customer relations, and 4) learning and growth activities
Term
Return on Investment (ROI)
Definition
A calculation showing the value of an investment
Term
Human Capital Value Added (HCVA)
Definition
An adjusted operating profitability figure calculated by subtracting all operating expenses except for labor expenses from revenue and dividing by the total full-time head count.
Term
Human Capital Return on Investment (HCROI)
Definition
Directly shows the amount of profit derived from investments in labor, or the leverage on labor cost, and is calculated by subtracting all operating expenses except for labor expenses from revenue and dividing by all labor costs.
Term
Human Economic Value Added (HEVA)
Definition
Wealth created per employee and is calculated by taking net profits after taxes and subtracting cost of capital and then dividing by Full time head count
Term
HR Audit
Definition
A formal research effort to assess the current state of HR practices
Term
Ways to manage a talent surplus
Definition
1) reduction in work hours or compensation, 2) attrition and hiring freezes, 3) voluntary separations and 4) workforce downsizing
Term
Ways to manage a talent shortage
Definition
1) overtime, 2) outsource work, 3) implement alternative work arrangements, 4) bring back recent retirees, 5) use contingent workers, and 6) reduce turnover
Term
Protected Category
Definition
A group identified for protection under EEO laws and regulations
Term
Disparate Treatment
Definition
Occurs when members of a group are treated differently from others
Term
Disparate Impact
Definition
Occurs when members of a protected category are substantially underrepresented as a result of employment decisions that work to their disadvantage.
Term
Business Necessity
Definition
A practice necessary for safe and efficient organizational operations
Term
Bona Fide Occupational Qualification (BFOQ)
Definition
Characteristics providing a legitimate reason why an employer can exclude persons on otherwise illegal basis of consideration
Term
Burden of Proof
Definition
What individuals who file suite against and employer must prove in order to establish that illegal discrimination has occurred
Term
Retaliation
Definition
Punitive actions taken by employers against individuals who exercised their legal rights
Term
Ways to avoid claims of retaliations
Definition
1) Train supervisors on what retaliation is and what is not appropriate, 2) Conduct a thorough internal investigation of any claims and document the results, and 3) take appropriate action when any retaliation occurs.
Term
Equal Employment
Definition
Employment that is not affected by illegal discrimination
Term
Blind to differences
Definition
Differences among people would be ignored and everyone should be treated equally.
Term
Affirmative Action
Definition
Employers are urged to employ people based on their race, age, gender or national origin to make up for historical discrimination.
Term
Civil Rights Act of 1964, Title VII
Definition
discrimination based on race, color, religion sex or national, origin
Term
Title VII Covers
Definition
1) private employers with more than 15 employees employed 20 our more weeks per year, 2) all educational institutions, 3) state and local governments, 4) Public and private employment agencies, labor unions with 15 or more members,
Term
Civil Rights Act of 1991
Definition
Requires that employers show that an employment practice is job related and is consistent with business necessity
Term
Affirmative Action Plan
Definition
A document reporting on the composition of an employer's workforce, required for federal contractors
Term
Availability Analysis
Definition
Identifies the number of protected-class members available to work in the appropriate labor markets for given jobs
Term
Utilization Analysis
Definition
Identifies the number of protected-class members employed in the organization and the types of jobs they hold
Term
Pay Equality
Definition
The idea that pay for jobs requiring comparable levels of knowledge skill and ability should be similar, even if actual duties differ significantly
Term
Sexual Harassment
Definition
Actions that are sexually directed, are unwanted, and subject the worker to adverse employment conditions or create a hostile work environment
Term
Glass Ceiling
Definition
Discriminatory practices that have prevented women and other protected-class members from advancing to executive-level jobs
Term
Nepotism
Definition
The practice of allowing relatives to work for the same employer
Term
Quid Pro Quo
Definition
Sexual harassment in which employment outcomes are linked to the individual granting sexual favors
Term
Hostile Environment
Definition
Sexual harassment in which and individuals work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions
Term
Essential Job Duties
Definition
Fundamental job duties
Term
Reasonable Accommodation
Definition
A modification to a job or work environment that gives a qualified individual an equal opportunity to perform
Term
Undue Hardship
Definition
Significant difficulty or expense imposed on an employer in making an accommodation for individuals with disabilities
Term
Disabled Person
Definition
Someone who has a physical or mental impairment that substantially limits life activities, who has a record of such an impairment, or who is regarded as having such an impairment
Term
Phased Retirement
Definition
An approach in which employees gradually reduce their workloads and pay levels
Term
Components of Traditional Diversity Training
Definition
1) Legal awareness, 2) Cultural awareness, and 3) sensitivity training
Term
Diversity
Definition
Differences in human characteristics and composition in an organization
Term
Generational classifications
Definition
1) Matures (born before 1946) 2) Baby Boomers (born 1946-1964), 3) Generation Xers (born 1965-1980), and 4) Generation Yers or Millenials (born 1981-2000)
Term
Work
Definition
Effort directed toward accomplishing results
Term
Work Flow Analysis
Definition
Study of the way work (inputs, activities, and outputs) moves through an organization
Term
Outputs
Definition
Goods and services
Term
Activities
Definition
Tasks and jobs
Term
Inputs
Definition
People, materials, information, data, equipment etc…)
Term
Job
Definition
A grouping of tasks, duties, and responsibilities that constitutes the work assignment for an employee
Term
Job Design
Definition
Organizing task, duties, responsibilities, and other elements into a productive unit of work
Term
Contingent Worker
Definition
Someone who is not an employee, but a temporary worker for a specific period of time and type of work
Term
Person-job fit
Definition
Matching characteristics of people with characteristics of jobs
Term
Job Enlargement
Definition
Broadening the scope of a job by expanding the number of different tasks to be performed
Term
Job Enrichment
Definition
increasing the depth of a job by adding responsibility for planning, organizing, controlling, or evaluating the job.
Term
Job Rotation
Definition
The process of shifting a person from job to job
Term
Job Sharing
Definition
Scheduling arrangement in which two employees perform the work of one full-time job.
Term
Hickman and Oldham 5 important design characteristics of jobs
Definition
1) skill variety, 2) task identity, 3) task significance, 4 autonomy, and 5) feedback
Term
Skill Variety
Definition
Extent to which the work requires several different activities for successful completion
Term
Task Identity
Definition
Extent to which the job includes a "whole" identifiable unit of work that is carried out from start to finish and that results in a visible outcome
Term
Task Significance
Definition
Impact the job has on other people
Term
Autonomy
Definition
Extent of individual freedom and discretion in the work and its scheduling
Term
Feedback
Definition
The amount of information employees receive about how well or how poorly they have performed
Term
Special Purpose Team
Definition
Organizational team formed to address specific problems, improve work processes, and enhance the overall quality of product and services
Term
Self-directed Team
Definition
Organizational team composed of individuals who are assigned a cluster of tasks, duties, and responsibilities to be accomplished
Term
Virtual Team
Definition
Organizational team composed of individuals who are separated geographically but linked by communications technology
Term
Telework
Definition
Employees work with technology via electronic, telecommunications, and internet means
Term
Shift work
Definition
A scheduling mechanism that allows employers to have staffs of people working 24-7.
Term
Compressed Workweek
Definition
A workweek in which a full week's work is accomplished in fewer that five 8-hour days
Term
Flextime
Definition
Scheduling arrangement in which employees work a set number of hours a day but vary starting and ending times
Term
Job Analysis
Definition
Systematic way of gathering and analyzing information about the content, context, and human requirement of a job
Term
Task
Definition
Distinct, identifiable work activity composed of motions
Term
Duty
Definition
Work segment composed of several tasks that are performed by an individual
Term
Responsibilities
Definition
Obligations to perform certain tasks and duties
Term
Competencies
Definition
Individual capabilities that can be linked to enhanced performance by individuals or teams
Term
Marginal Job Functions
Definition
Duties that are part of a job but are incidental or ancillary to the purpose and nature of the job
Term
Three major considerations used in determining essential functions and marginal functions
Definition
1) Percentage of time spent on tasks, 2) Frequency of task done, and 3) Importance of task performed
Term
Job Description
Definition
Identification of the task, duties and responsibilities of a job
Term
Job specifications
Definition
The knowledge, skills and abilities (KSAs) an individual needs to Perform a job satisfactorily
Term
Performance Standards
Definition
Indicators of what the job accomplishes and how performance is measured in key areas of the job description
Term
Job Description Components
Definition
1) identification, 2) General Summary, 3) Essential job functions and duties, 4) Job specifications, and 5) Disclaimers and approvals
Term
Human Resource Planning
Definition
The process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives
Term
Forecasting
Definition
using information from the past and the present to identify future conditions
Term
Psychological contract
Definition
The unwritten expectations employees and employers have about the nature of their work relationships
Term
Performance
Definition
Ability x Effort x Support
Term
Motivation
Definition
The desire within a person causing that person to act
Term
Job Satisfaction
Definition
A positive emotional state resulting from evaluating one's job experiences
Term
Attitude Survey
Definition
A survey that focuses on employees' feelings and beliefs about their jobs and the organization
Term
Organizational Commitment
Definition
The degree to which employees believe in and accept organizational goals and desires to remain with the organization
Term
Turnover
Definition
The process in which employees leave and organization and have to be replaced
Term
Churn
Definition
Hiring new workers while laying off other workers
Term
Turnover Costs
Definition
1) Separation Costs, 2) Vacancy costs, 3) Replacement costs, 4) Training costs, and 5) Hidden/indirect costs
Term
Exit Interview
Definition
An interview in which individuals who are leaving an organization are asked to give their reasons
Term
Recruiting
Definition
The process of generating a pool of qualified applicants for organizational jobs
Term
Labor Markets
Definition
External supply pool from which employers attract employees
Term
Labor Force Population
Definition
All individuals who are available for selection if all possible recruitment strategies are used
Term
Applicant Pool
Definition
A subset of the labor force population that is available for selection using a particular recruiting approach - those individuals actually evaluated for selection
Term
Intensive Recruiting
Definition
A vigorous recruiting campaign aimed at hiring a given number of employees, usually in a short period of time
Term
Job Posting
Definition
A system in which the employer provides notices of job openings and employees respond by applying for specific openings
Term
Yield Ratio
Definition
Comparison of the number of applicants at one stage of the recruiting process with the number at the next stage
Term
Selection Rate
Definition
The percentage hired from a given group of candidates
Term
Acceptance Rate
Definition
The percentage of applicants hired divided by total number of applicants offered jobs
Term
Selection
Definition
The process of choosing individuals with the correct qualifications needed to fill jobs in an organization
Term
Placement
Definition
Fitting a person to the right job
Term
Selection Criteria
Definition
Characteristics that a person must possess to successfully perform the work
Term
Predictors of Selection Criteria
Definition
Measurable or visible indicators of selection criteria
Term
Correlation Coefficient
Definition
Index number that gives the relationship between a predictor variable and a criterion variable
Term
Concurrent Validity
Definition
Measured when an employer tests current employees and correlates the scores with their performance ratings.
Term
Predictive Validity
Definition
Measured when test results of applicants are compared with subsequent job performance
Term
Realistic Job Preview
Definition
A process through which a job applicant receives an accurate picture of a job
Term
Application Disclaimers for appropriate employer legal protection
Definition
1) Employment-at-will, 2) Reference contacts, 3) Employment testing 4) Application time limit, and 5) Information falsification
Term
Illegal Application Questions
Definition
1) Marital Status, 2) Height/Weight, 3) Number and ages of dependents, 4) Information on Spouse, 5) Date of high school graduation, 6) Contact in case of emergency
Term
Cognitive Ability Test
Definition
Tests that measure an individuals thinking, memory, reasoning, verbal, and mathematical abilities
Term
Physical Ability Test
Definition
Tests that measure and individual's abilities such as strength, endurance, and muscular movement
Term
Psychomotor Tests
Definition
Tests that measure dexterity, hand-eye-coordination, arm-hand steadiness, and other factors
Term
Work Sample Tests
Definition
Tests that require and applicant to perform a simulated task that is a specified part of the target job
Term
Situation Judgment Tests
Definition
Tests that measure a person's judgment in work settings and situations
Term
Assessment Centers
Definition
Consist of a series of evaluative exercises and tests used for selection and development
Term
Personality
Definition
A unique blend of individual characteristics that can affect how people interact with their work environment
Term
Five Personality Characteristics
Definition
1) Conscientiousness, 2) Agreeableness, 3) Openness to Experience, 4) Extroversion, and 5) Emotional Stability
Term
Structured Interview
Definition
Interview that uses a set of standardized questions asked of all applicants
Term
Biographical Interview
Definition
Interview in which applicants give specific examples of how they have performed a certain task or handled a problem in the past
Term
Situational Interview
Definition
Structured interview that contains questions about how applicants might handle specific job situations
Term
Nondirective Interview
Definition
Interview that uses questions developed from the answers to previous questions
Term
Stress Interview
Definition
Interview designed to create anxiety and put pressure on applicants to see how they respond
Term
Panel Interview
Definition
Interview in which several interviewers meet with candidate at the same time
Term
Team Interview
Definition
Interview in which applicants are interviewed by members with whom they will work
Term
Suggestions for Making Interviews for effective
Definition
1) Plan the interview, 2) Control the interview, and 3) Use effective questioning techniques
Term
Halo Effect
Definition
Occurs when the interviewer allows a positive characteristic such as agreeableness, to overshadow other evidence
Term
Devils Horns
Definition
Occurs when the interviewer allows a negative characteristic, such as inappropriate dress, to overshadow other positive traits.
Term
Negligent Hiring
Definition
Occurs when an employer fails to check an employee's background and the employee injures someone on the job
Term
Negligent Retention
Definition
Occurs when an employer becomes aware that an employee may be unfit for work but continues to employ the person and the person injures someone
Term
Good questions to ask of an applicant's previous supervisor or employer
Definition
1) Dates of employment, 2) Position held, 3) What were the job duties,, 4) what strengths or weaknesses were observed, 5) Were there any problems, and 6) Would you rehire or is applicant eligible for rehire
Term
Selection Factors for Global Employees
Definition
1) Cultural Adjustment, 2) Personal Characteristics, 3) Organizational requirements, 4) Communications skills, and 5) Personal/Family concerns
Term
Training
Definition
Process whereby people acquire capabilities to perform jobs
Term
Training Categories
Definition
1) Required and regular training,, 2) Job/Technical training, 3) Developmental and career training, and 4) Interpersonal training
Term
Knowledge Management
Definition
The way an organization identifies and leverages knowledge in order to be competitive
Term
Performance Consulting
Definition
Process in which a trainer and an organization work together to decide how to improve organizational and individual results
Term
Effective Training efforts consider the following questions
Definition
1) Is there really a need for training, 2) Who needs to be trained, 3) Who will do the training, 4) What form will training take, 5) How will knowledge be transferred to the job, and 6) how will training be evaluated
Term
Orientation
Definition
Planned introduction of new employees to their jobs, coworkers, and the organization
Term
Systematic Training Process
Definition
1) Training Needs Assessment, 2) Training Design, 3) Training Delivery and 4) Evaluation of Training
Term
Training Gap Analysis
Definition
Indicates the distance between where and organization is with its employee capabilities and where it needs to be
Term
Self-efficacy
Definition
People's belief that they can successfully learn the training program content
Term
Adult learning
Definition
Ways in which adults learn differently than younger people
Term
Five Principles for designing training for adults
Definition
Adults: 1) Have the need to know why they are learning something, 2) Have a need to be self-directed, 3) Bring more work-related experiences in the learning process, 4) Enter into a learning experience with a problem centered approach to learning, and 5) are motivated to learn by both extrinsic and intrinsic factors
Term
Active Practice
Definition
Performance of job-related tasks and duties by trainees during training
Term
Spaced Practice
Definition
Practice performed in several sessions spaced over a period of hours or days
Term
Massed Practice
Definition
practice performed all at once
Term
Behavioral Modeling
Definition
Copying someone else's behavior
Term
Overlearning
Definition
Repeated practice even after a learner has mastered the performance
Term
Reinforcement
Definition
Based on the idea that people tend to repeat responses that give them some type of positive reward and to avoid actions associated with negative consequences
Term
Immediate Confirmation
Definition
Based on the idea that people learn best if reinforcement and feedback are given as soon as possible after training
Term
The two conditions met by Effective Transfer of training
Definition
1) The trainees can take the material learned in training and apply it to the job context in which they work, and 2) employees maintain their use of the learned material over time
Term
Informal Training
Definition
Training that occurs through interaction and feedback among employees
Term
Cross Training
Definition
Training people to do more than one job
Term
Cooperative Training
Definition
Approaches that mix classroom and on-the-job experiences
Term
Blended Learning
Definition
Learning approach that combines methods, such as short, fast-paced, interactive computer-based lessons and teleconferencing with traditional classroom instruction and simulation
Term
Kirkpatrick's 4 Levels for Training Evaluation
Definition
1) Reaction, 2) Learning, 3) Behavior, and 4) Results
Term
Cost-benefit Analysis
Definition
Comparison of costs and benefits associated with training
Term
Talent Management
Definition
Focuses on having the right individuals ready for the jobs when needed, and a pipeline full of talented people who are being developed for future organizational needs
Term
Succession Planning
Definition
The process of identifying a plan for the orderly replacement of key employees
Term
Career
Definition
A series of work-related positions a person occupies throughout life
Term
Protean Career
Definition
Assumes individuals will drive their careers and define goals to fit their life
Term
Career Without Boundaries
Definition
Views a manager as having many possible trajectories for a career
Term
Portfolio Career
Definition
Careers are built around a selection of skills and interests and are self-managed
Term
Authentic Career
Definition
People achieve a high level of personal insight and use this to follow a true-to-self career
Term
Organizational-Centered Career Planning
Definition
Career planning that focuses on identifying career paths that provide a logical progression of people between jobs in an organization
Term
Career Paths
Definition
Represent employees' movements through opportunities over time
Term
Individual-Centered Career Planning
Definition
Career planning that focuses on an individual's responsibility for a career rather than on organizational needs
Term
Four general Individual characteristics that affect how people make career choices
Definition
1) Interests, 2) Self-image, 3) Personality, and 4) Social backgrounds
Term
Career Transitions
Definition
1) Organizational entry and socialization, 2) job loss, and 3) retirement
Term
Dual-career Ladder
Definition
System that allows a person to advance up either a management or a technical professional ladder
Term
Repatriation
Definition
Planning, training, and reassignment of global employees back to their home countries
Term
Development
Definition
Efforts to Improve employees' abilities to handle a variety of assignments and to cultivate employees' capabilities beyond those required by the current job
Term
Job-site development approaches
Definition
1) Coaching, 2) Committee Assignments, 3) Job Rotation, and 4) Assistant Positions
Term
Off-site development approaches
Definition
1) Classroom Courses and Seminars, 2) Outdoor development experiences, and 3) Sabbaticals and leaves of absence
Term
Sabbatical
Definition
Time off of the job to develop and rejuvenate oneself
Term
Learning Organizations
Definition
Organizations that encourage development efforts through shared information, culture, and leadership that stress the importance of individual learning
Term
Tools of Learning Organizations
Definition
1) Corporate Universities, 2) Career Development centers and 3) E-Development
Term
Performance Management
Definition
Series of activities designed to ensure that the organization gets the performance it needs from its employees
Term
Performance Appraisal
Definition
Process of determining how well employees do their jobs relative to a standard and communicating that information to them.
Term
An effective performance management system
Definition
Should: 1) Make clear what the organization expects, 2) Provide performance information to employees, 3) Identify areas of success and needed development and 4) Document performance for personnel records
Term
Job Duties
Definition
Important elements of a job
Term
Trait-based Performance Information
Definition
1) Attitude, 2) Teamwork, 3) Initiative, 4) Effective Communication, 5) Creativity, 6) Values, and 7) Dispositions
Term
Behavior-based Performance Information
Definition
1) Customer Satisfaction, 2) Verbal persuasion, 3) timeliness of response, and 4) Citizenship / Ethics
Term
Results-based Performance information
Definition
1) Sales Volume, 2) Cost reduction, 3) Units produced, and 4) Improved quality
Term
Performance Standards
Definition
Define the expected levels of employee performance
Term
Administrative uses of Appraisals
Definition
1) determining pay adjustments, 2) making job placement decisions, and 3) choosing employee disciplinary action
Term
Developmental uses of Appraisals
Definition
Coaching, provide positive reinforcement
Term
A legally defensible performance appraisal should include:
Definition
1)Performance appraisal criteria based on job analysis, 2) Absence of disparate impact,, 3) Formal evaluation criteria that limit managerial discretion, 4) A rating instrument linked to job duties and responsibilities, 5) Documentation of the appraisal activities, 6) Personal knowledge of and contact with each appraised employee, 7) Training of supervisors in conducting appraisals, 8) A review process that prevents one manager acting alone from controlling and employee's career, and 9) counseling to help poor performers improve
Term
Graphic Rating Scale
Definition
Scale that allows the rater to mark an employee's performance on a continuum
Term
Behavioral Rating Scales
Definition
Designed to assess individual actions instead of personal attributes and characteristics
Term
Ranking
Definition
Performance appraisal method in which all employees are listed from highest to lowest in performance
Term
Forced Distribution
Definition
Performance appraisal method in which ratings of employees' performance levels are distributed along a bell-shaped curve
Term
Management by Objectives (MBO)
Definition
Performance appraisal method that specifies the performance goals that an individual and manager identify together
Term
Recency Effect
Definition
Occurs when a rater gives greater weight to recent events when appraising an individuals performance
Term
Primacy Effect
Definition
Occurs when a rater gives greater weight to information received first when appraising an individuals performance
Term
Central Tendency Error
Definition
Occurs when a rater gives all employees a score within a narrow range in the middle of the scale
Term
Leniency Error
Definition
Occurs when ratings of all employees fall at the high end of the scale
Term
Strictness Error
Definition
Occurs when ratings of all employees fall at the low end of the scale
Term
Rater Bias
Definition
Occurs when a rater's values or prejudices distort the rating
Term
Halo Effect Rating
Definition
Occurs when a raters scores an employee high on all job criteria because of performance in one area
Term
Contrast Error
Definition
Tendency to rate people relative to others rather than against performance standards
Term
Total Rewards
Definition
Monetary and nonmonetary rewards provided by companies to attract, motivate, and retain employees
Term
Base Pay
Definition
Basic compensation that employee receives, usually as a wage or salary
Term
Wages
Definition
Payments calculated directly from the amount of time worked by employees
Term
Salaries
Definition
Consistent payments made each period regardless of the number of hours worked
Term
Variable Pay
Definition
Compensation linked directly to individual, team, or organizational performance
Term
Benefit
Definition
Indirect reward given to an employee or group of employees as part of membership in the organization
Term
Entitlement Philosophy
Definition
Assumes that individuals who have worked another year are entitled to pay increases, with little regard to performance differences
Term
Pay-For-Performance Philosophy
Definition
Requires that compensation changes reflect performance differences
Term
Equity
Definition
Perceived fairness between what a person does and what the person receives
Term
External Equity
Definition
Pay that is considered fair relative to other employers in the marketplace
Term
Internal Equity
Definition
Employees receive compensation in relation to the knowledge, skills, and abilities (KSAs) they use in their jobs, as well as their responsibilities and accomplishments
Term
Procedural Justice
Definition
Perceived fairness of the process and procedures used to make decisions about employees
Term
Distributive Justice
Definition
Perceived fairness in the distribution of outcomes
Term
Competency-based Pay
Definition
Rewards individuals for the capabilities they demonstrate and acquire
Term
Balance-sheet approach
Definition
Compensation plan that equalizes cost differences between the international assignment and the same assignment in the home country
Term
Global Market Approach
Definition
Compensation plan that attempts to be more comprehensive in providing base pay, incentives, benefits, and relocation expenses regardless of the country to which the employee is assigned
Term
Tax Equalization Plan
Definition
Compensation plan used to protect expatriates from negative tax consequences
Term
Living Wage
Definition
Earning that are supposed to meet the basic needs of an individual working for an organization
Term
Exempt Employees
Definition
Employees who are not paid overtime
Term
Nonexempt Employees
Definition
Employees who must be paid overtime
Term
Five categories of employees who are Exempt
Definition
1) Executive, 2) Administrative, 3) Professional, 4) Computer employees, 5) Outside sales
Term
Pay Equity
Definition
The concept that the pay for all jobs requiring comparable knowledge, skills, and abilities (KSAs) should be the same even if actual job duties and market rates differ significantly
Term
Garnishment
Definition
A court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to a creditor.
Term
Job Evaluation
Definition
Formal, systematic means to identify the relative worth of jobs within an organization
Term
Compensable Factor
Definition
Job value commonly present throughout a group of jobs within an organization
Term
The Hay System Point factors for job evaluation
Definition
1) Know-how, 2) Problem solving ability, and 3) accountability
Term
Market Pricing
Definition
Use of market pay data to identify the relative value of jobs based on what other employers pay for similar jobs
Term
Pay Survey
Definition
Collection of data on compensation rates for workers performing similar jobs in other organizations
Term
Benchmark Jobs
Definition
Jobs found in many organizations that can be used for the purpose of comparison
Term
Job Family
Definition
A group of jobs having common organizational characteristics
Term
Pay Grades
Definition
Groupings of individual jobs having approximately the same job worth
Term
Market Line
Definition
Graph line that shows the relationship between job values as determined by job evaluation points and job values as determined by survey rates
Term
Market Banding
Definition
Grouping jobs into pay grades based on similar market survey amounts
Term
Broadbanding
Definition
The practice of using fewer pay grades with much broader ranges than in traditional compensation systems
Term
Primary Reasons for using broadbanding.
Definition
1) to create more flexible organizations, 2) to encourage competency development, and 3) to emphasize career development
Term
Red-circled employee
Definition
incumbent who is paid above the range set for a job
Term
Green-circled employee
Definition
incumbent who is paid below the range set for the job
Term
Pay compression
Definition
Occurs when the pay differences among individuals with different levels of experience and performance become small
Term
Methods for determining pay increases
Definition
1) Performance Based, 2) Seniority, 3) Cost of Living Adjustments, 4) Across-the-board increases, 5) Lump-Sum Increases
Term
Compa-ratio
Definition
Pay level divided by the midpoint of the pay range
Term
Senority
Definition
Time spent in an organization on a particular job
Term
Lump-sum increase
Definition
One-time payment for all or part of a yearly pay increase
Term
Three categories of Variable Pay
Definition
1) Individual, 2) Group/team, and 3) Organizational
Term
Straight piece-rate system
Definition
Pay system in which wages are determined by multiplying the number of unites produced by the piece rate for one unit
Term
Bonus
Definition
One-time payment that does not become part of the employee's base pay
Term
Spot Bonus
Definition
Can be awarded at any time
Term
Gainsharing
Definition
System of sharing with employees greater-than-expected gains in profits and/or productvitiy
Term
Profit sharing
Definition
system to distribute a portion of the profits of an organization to employees
Term
Stock Option Plan
Definition
Plan that gives employees the right to purchased a fix number of shares of company stock at a specified price for a limited period of time
Term
Employee Stock Ownderhip Plan (ESOP)
Definition
Plan designed to give employees significant stock ownership in their employers
Term
Commission
Definition
Compensation computed as a percentage of sales in units or dollars
Term
Draw
Definition
Amount advanced against, and repaid from, future commissions earned by the employee
Term
Perquisites (PERKS
Definition
Special benefits - usually non-cash items for executives
Term
Benefit
Definition
An indirect reward given to an employee or group of employees for organizational membership
Term
Major advantage of Benefits
Definition
They generally are not taxed to employees
Term
Flexible Benefits plan
Definition
Program that allows employees to select the benefits they prefer from groups of beneiftis established by the employer
Term
Adverse Selection
Definition
A situtation where only higher-risk employees select and use certain benefits
Term
Government Mandated Benefits
Definition
1) Social Security, 2) Unemployment insurance, 3) workers' Compensation insurance, 4) FMLA Unpaid leave, 5) COBRA, and 6) HIPPA
Term
Workers' compensation
Definition
Security benefits provided to persons who are injured on the job
Term
Severance Pay
Definition
Security benefit voluntarily offered by employers to individuals whose jobs are eliminated or who leave by mutual agreement with their employers
Term
Copayment
Definition
Strategy of requiring employees to pay a portion of the cost of insurance premiums, medical care, and prescription drugs.
Term
Managed care
Definition
Approaches that monitor and reduce medical costs through restrictions and market system alternatives
Term
Preferred Provider Organization (PPO)
Definition
A health care provider that contracts with an employer or an employer group to supply health care services to employees at a competitive rate.
Term
Utilization Review
Definition
Audit of services and costs billed by health care providers
Term
consumer -driven (CDH) plan
Definition
health plan that provides employer financial contributions to employees to help cover their health-related expenses - Defined Contribution Health Plans
Term
Pension Plan
Definition
Retirement program established and funded by the employer and employees
Term
Defined-benefit plan
Definition
Retirement program in which employees are promised a pension amount based on age and service (employer makes the contributions and employees get a defined monthly amount upon retirement)
Term
Defined-contribution plan
Definition
Retirement program in which the employer makes an annual payment to an employees pension account - the key is the contribution rate
Term
3 Primary type of Defined-Contribution Plans
Definition
1) Profit Sharing, 2) Employee Stock Ownership, and 3) 401K Plan
Term
Cash balance plan
Definition
Retirement program in which benefits are based on an accumulation of annual company contributions plus interested credited each year
Term
Contribution plan
Definition
Pension plan in which the money for pension benefits is paid by both employees and the employer
Term
Vesting
Definition
Right of employees to receive certain benefits from their pension plans
Term
Portability
Definition
A pension plan feature that allows employees to move their pension benefits from one employer to another
Term
Stock Purchase Plan
Definition
Plan in which the employer provides matching funds equal to the amount invested by the employee for the purchase of stock in the company
Term
Serious Health condition
Definition
health condition requiring in-patient, hospital, hospice, or residential medical care or continuing physician care
Term
Well pay
Definition
Extra pay for not taking sick leave
Term
Paid-Time-Off (PTO) Plan
Definition
Plan that combines all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay
Term
Risk Management
Definition
Involves responsibilities to consider physical, human, and financial factors to protect organizational and individual interests
Term
Health
Definition
General state of physical, mental, and emotional well-being
Term
Safety
Definition
Condition in which the physical well-being of people is protected
Term
Security
Definition
Protection of employees and organizational facilities
Term
Three major causes of injury
Definition
1) overextending, 2) falling, and 3) bodily reaction
Term
Ergonomics
Definition
The study and design of the work environment to address physical demands placed on individuals
Term
Cumulative Trauma Disorders (CTDs)
Definition
Muscle and skeletal injuries that occur when workers repetitively use the same muscles to perform tasks
Term
Four types of OSHA defined Injuries or Illness
Definition
1) Injury or illness related deaths, 2) Lost time or disability injuries, 3) Medical care injuries, and 4) minor injuries
Term
Health Promotion
Definition
Supportive approach of facilitating and encouraging healthy actions and lifestyles among employees
Term
Wellness Program
Definition
Programs designed to maintain or improve employee health before problems arise
Term
Employee Assistance Program (EAP)
Definition
program that provides counseling and other help to employees having emotional, physical, or other personal problems
Term
Rights
Definition
Powers, privileges, or interests that belong by law, nature or tradition
Term
Statutory Rights
Definition
Rights based on laws or statutes passed by federal, state, or local governments
Term
Responsibilities
Definition
Obligations to perform certain tasks and duties
Term
Contractual Rights
Definition
Rights based on a specific contract between and employer and an employee
Term
Employment contract
Definition
Formal agreement that outlines the details of employment
Term
Noncompete Agreement
Definition
Agreements that prohibit individuals who leave an organization from working with an employer in the same line of business for a specified period of time.
Term
Employment-At-Will
Definition
A Common law doctrine stating that employers have the right to hire, fire, demote, or promote whomever they choose, unless there is a law or contract to the contrary
Term
Wrongful Discharge
Definition
Termination of an individual's employment for reasons that are illegal or improper
Term
Constructive Discharge
Definition
The process of deliberately making conditions intolerable to get an employee to quit
Term
Just Cause
Definition
Reasonable justification for taking employment-related action
Term
Due Process
Definition
Requirement that the employer use a fair process to determine employee wrongdoing and that the employee have an opportunity to explain and defend his or her actions
Term
Distributive Justice
Definition
Perceived fairness in the distribution of outcomes
Term
Procedural Justice
Definition
Perceived fairness of the process and procedures used to make decisions about employees
Term
Interactional Justice
Definition
Perceived fairness about how a person interacts with others
Term
"Open-Door" Policy
Definition
A policy in which anyone with a complaint can talk with a manager, an HR representative, or an executive
Term
Arbitration
Definition
Process that uses a neutral third party to make a decision
Term
Ombuds
Definition
Individuals outside of the normal chain of command who act as problem solvers for both management and employees
Term
Right to Privacy
Definition
An individual's freedom from unauthorized and unreasonable intrusion into personal affairs
Term
Whistle Blowers
Definition
individuals who report real or perceived wrongs committed by their employers
Term
Policies
Definition
General guidelines that focus organizational actions
Term
Procedures
Definition
Customary methods of handling activities
Term
Rules
Definition
Specific guidelines that regulate and restrict the behavior of individuals
Term
Absenteeism
Definition
Any failure by an employee to report for work as scheduled or to stay at work when scheduled.
Term
Five prominent categories for dealing with absenteeism
Definition
1) Disciplinary approach, 2) Positive reinforcement, 3) Combination approach, 4) "No-fault" policy, and 5) Paid-Time-Off
Term
Discipline
Definition
Form of training that enforces organizational rules
Term
Elements of the positive discipline approach
Definition
1) Counseling, 2) written documentation, 3) Final warning, and 4) Discharge
Term
Discharge
Definition
When an employee is removed from a job at an employer
Term
Separation Agreement
Definition
Agreement in which a terminated employee agrees not to sue the employer in exchange for specified benefits
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