HRM Terminology

Term		Definition
4/5ths rule:	Rule stating that discrimination generally is considered to occur if the selection rate for a protected group is less than 80% (4/5ths) of the selection rate for the majority group or less than 80% of the group’s representation in the relevant labor market
401(k) plan:	An agreement in which a percentage of an employee’s pay is withheld and invested in a tax deferred account
Absolute standards	Measuring an employee’s performance against some established standards
Accept errors	Accepting candidates who would later prove to be poor performers
Action learning	A training technique by which management trainees are allowed to work full time analyzing and solving problems in other departments
Active practice:	The performance of job-related tasks and duties by trainees during training
Adjective rating scales	A performance appraisal method that lists a number of traits and a range of performance for each
Adverse impact	The overall impact of employer practices that result in significantly higher percentages of members of minorities and other protected groups being rejected for employment placement, or promotion
Adverse selection	A situation in flexible benefits administration where those in greatest need of a particular benefit choose that benefit more often than the average employee
Adverse selection:	Situation in which only higher-risk employees select and use certain benefits
Affirmative action	Steps that are taken for the purpose of eliminating the present effects of past discrimination
Affirmative action plan (AAP):	Formal document that an employer compiles annually for submission to enforcement agencies
Affirmative action:	Process in which employers identify problem areas, set goals, and take positive steps to enhance opportunities for protected-class members
Agency shop	A form of union security in which employees who do not belong to the union must still pay union dues on the assumption that union efforts benefit all workers
Albemarle Paper Company v. Moody	Supreme Court case in which it was ruled that the validity of job tests must be documented and that employee performance standards must be unambiguous
Alternation ranking method	Ranking employees from best to worst on a particular trait
Apathy	Significant dysfunction tension resulting in no effort being made
Applicant pool:	All persons who are actually evaluated for selection
Applicant population:	A subset of the labor force population that is available for selection using a particular recruiting approach
Application form	The from that provides information on education, prior work record, and skills
Appraisal interview	An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths
Apprenticeship	A time – typically two to five years – when an individual is considering to be training to learn a skill
Arbitration:	Process that uses a neutral third party to make a decision
Arbitration:	Process that uses a neutral third party to make a decision
Assessment center:	A collection of instruments and exercises designed to diagnose individuals’ development needs
Attitude survey:	One that focuses on employees’ feelings and beliefs about their jobs and the organization
Attribution theory	A theory of performance evaluation based on the perception of who is in control of an employee’s performance
Attrition	A process whereby the jobs of incumbents who leave for any reason will not be filled
Authority	The right to make decisions, direct others’ work, and give orders
Autonomy	The freedom and independence involved in doing one’s job
Autonomy:	The extent of individual freedom and discretion in the work and its scheduling
Availability analysis:	An analysis that identifies the number of protected-class members available to work in the appropriated labor markets in given jobs
Baby boomers	Those individuals born between 1946 and 1964
Baby busters	Those individuals born in 1965 and years after.  Often referred to as generation Xers
Background investigation	The process of verifying information job candidates provide
Bargaining unit:	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
Behavior modeling	A training technique in which trainees are first shown good management techniques in a film, are then asked to play roles in a simulated situation, and are then given feedback and praise by their supervisor
Behavior modeling:	Copying someone else’s behavior
Behavioral interview:	Interview in which applicants give specific examples of how they have performed a certain task or handled a problem in the past
Behavioral rating approach:	Assesses an employee’s behaviors instead of other characteristics
Behavioral symptoms	Symptoms of stress characterized by decreased productivity, increased absenteeism and turnover, and increased smoking and alcohol/substance consumption
Behaviorally Anchored Rating Scales (BARS)	A performance appraisal technique that generates critical incidents and develops behavioral dimensions of performance.  The evaluator appraises behaviors rather than traits
Benchmark job:	Job found in many organizations and performed by several individuals who have similar duties that are relatively stable and require similar KSAs
Benchmarking:	Comparing specific measures of performance against data on those measures in other “best practice” organizations
Benefit:	An indirect reward given to an employee or group of employees as a part of organizational membership
Benefit:	Indirect compensation given to an employee or group of employees as a part of organizational membership
Benefits needs analysis:	A comprehensive look at all aspects of benefits
Blind-box ad	An advertisement in which there is no identification of the advertising organization
Blue Cross	A health insurer concerned with the hospital side of health insurance
Blue Shield	A health insurer concerned with the provider side of health insurance
Bona fide occupational qualification (BFOQ):	Characteristic providing a legitimate reason why an employer can exclude persons on otherwise illegal basis of consideration
Bonus:	A one-time payment that does not become part of the employee’s base pay
Boycott	The combined refusal by employees and other interested parties to by or se the employer’s products
Broadbanding:	Practice of using fewer pay grades having broader ranger than in traditional compensation systems
Bulletin board	A means a company uses to post information of interest to its employees
Burnout	The total depletion of physical and mental resources caused by excessive striving to reach an unrealistic work-related goal
Business agent:	A fulltime union official who operates the union office and assists union members
Business necessity:	A practice necessary for safe and efficient organizational operations
Career stages	An individual’s career moves through five stages: exploration, establishment, mid-career, late-career, and decline
Career:	The series of work-related positions a person occupies throughout life
Case study method	A development method in which the manager is presented with a written description of an organizational problem to diagnose and solve
Central tendency	A tendency to rate all employees the same way, such as rating them all average
Central tendency	The tendency of a rater to give average ratings
Central tendency error:	Rating all employees in a narrow range in the middle of the rating scale
Change agent	Individuals responsible for fostering the change effort, and assisting employees in adapting to the changes
Checklist:	Performance appraisal tool that uses a list of statements or words that are checked by raters
Citation	Summons informing employers and employees of the regulations and standards that have been violated in the workplace
Civil Service Reform Act	Replace Executive Order 11491 as the basic law governing labor relations for federal employees
Classification method	Method of job evaluation that focuses on creating common job grades based on skills, knowledge, and abilities
Clayton Act	Labor legislation that attempted to limit the use of injunctions against union activities
Closed shop:	A firm that requires individuals to join a union before they can be hired
Coaching	A development activity in which a manager takes an active role in guiding another manager
Coaching:	Training and feedback given to employees by immediate supervisors
Cognitive ability tests:	Test that measure an individual’s thinking, memory, reasoning, and verbal and mathematical abilities
Collective bargaining:	Process whereby representatives of management and workers negotiate over wages, hours, and other terms and conditions of employment
College placements	An external search process focusing recruiting efforts on a college campus
Commission:	Compensation computed as a percentage of sales in units or dollars
Communications programs	HRM programs designed to provide information to employees
Comparable worth	The concept by which women who are usually paid less than men can claim that men in comparable rather than strictly equal jobs are paid more
Compa-ratio:	Pay level divided by the midpoint of the pay range
Compensable factor:	Identifies a job value commonly present throughout a group of jobs
Compensation committee:	A subgroup of the board of directors composed of directors who are not officers of the firm
Compensatory time off:	Hours given in lieu of payment for extra time worked
Competencies:	Basic characteristics that can be linked to enhanced performance by individuals or teams
Competitive advantage	The basis for superiority over competitors and thus for hoping to claim certain customers
Complaint procedure	A formalized procedure in an organization through which an employee seeks resolution of a work problem
Complaint:	Indication of employee dissatisfaction
Compressed workweek:	One in which a full week’s work is accomplished in fewer than five days
Conciliation:	Process by which a third party attempts to keep union and management negotiators talking so that they can reach a voluntary settlement
Concurrent validity:	Measured when an employer tests current employees and correlates the scores with their performance ratings
Constraints on recruiting efforts	Factors that can affect maximizing outcome is recruiting
Construct validity:	Validity showing a relationship between an abstract characteristic and job performance
Constructive discharge:	Occurs when an employer deliberately makes conditions intolerable in an attempt to get an employee to quit
Content validity:	Validity measured by use of a logical, nonstatistical method to identify the KSAs and other characteristics necessary to perform a job
Continuous process improvement	A total quality management concept whereby workers continue toward 100 percent effectiveness on the job
Contract administration	Implementing, interpreting, and monitoring the negotiated agreement between labor and management
Contractual rights:	Rights based on a specific contractual agreement between employer and employee
Contrast error:	Tendency to rate people relative to others rather than against performance
Contributory plan:	Pension plan in which the money for pension benefits is paid in by both employees and employers
Controlled experimentation	Formal method for testing the effectiveness of a training program, preferable with before-and-after tests and a control group
Controlling	A management function concerned with monitoring activities
Co-payment:	Employee’s payment of a portion of the cost of both insurance premiums and medical care
Core competency:	A unique capability that creates high value and that differentiates the organization from its competition
Core-plus plans	A flexible benefits program whereby employees are provided core benefit coverage and then are permitted to buy additional benefits from a menu
Correlation coefficient:	Index number giving the relationship between a predictor and a criterion variable
Correlation coefficients	A statistical procedure showing the strength of the relationship between one’s test score and job performance
Cost-benefit analysis:	Comparison of costs and benefits associated with training
Craft union:	One whose members do one type of work, often using specialized skills and training
Criterion-related validity:	Validity measured by a procedure that uses a test as the predictor of how well an individual will perform on the job
Critical incident appraisal	A performance appraisal method that focuses on the key behaviors that make the difference between doing a job effectively or ineffectively
Critical incident method	Keeping a record of uncommonly food or undesirable examples of an employee’s work-related behavior and reviewing it with the employee at predetermined times
Cultural environments	The attitudes and perspectives shared by individuals from specific countries that shape their behavior and how they view the world
Cumulative trauma disorders (CTDs):	Muscle and skeletal injuries that occur when workers respectively use the same muscles to perform tasks
Cut score	A point at which applicants scoring below that point are rejected
Davis-Bacon Act	A law passed in 1931 that sets wage rates for laborers employed by contractors working for the federal government
Decentralized work sites	Work sites that exist away from an organization’s facilities
Decertification:	Process whereby a union is removed as the representative of a group of employees
Decline phase	The final stage in one’s career, usually marked by retirement
Defined-benefit plan:	One in which an employee is promised a pension amount based on age and service
Defined-contribution plan:	One in which the employer makes an annual payment to an employee’s pension account
Delegation	A management activity in which activities are assigned to individuals at lower levels in the organization
Deprivation	A state of having an unfulfilled need
Development:	Efforts to improve employees’ ability to handle a variety of assignments
Diary method	A job analysis method requiring job incumbents to record their daily activities
Dictionary of Occupational Titles	A government publication that lists more than 30,000 jobs
Differential piece-rate system:	A system in which employees are paid one piece-rate wage for units produced up to a standard output and a higher piece-rate wage for units produced over the standard
Differential validity	A special type of validation whereby a cut score is lower due to bias in the test
Disabled person:	Someone who has a physical or mental impairment that substantially limits life activities, who has record of such an impairment, or who is regarded as having such an impairment
Discipline:	Form of training that enforces organizational rules
Disparate impact:	Occurs when substantial under representation of protected-class members results from employment decisions that work to their disadvantage
Disparate treatment:	Situation that exists when protected-class members are treated differently from others
Distributive bargaining	A competitive, confrontational bargaining strategy
Distributive justice:	The perceived fairness in the distribution of outcomes
Distributive justice:	Perceived fairness in the distribution of outcomes
Diversity:	The differences among people
Diversity:	The differences among people
Documentation	Used as a record of the performance appraisal process outcomes
Downsizing	An activity in an organization aimed at creating greater efficiency by eliminating certain jobs
Draw:	An amount advanced from and repaid to future commissions earned b the employee
Drug-free Workplace Act	Requires specific government-related groups to ensure that their workplace is drug free
Due process:	Means used for individuals to explain and defend their actions against charges or discipline
Duty:	A larger work segment composed of several tasks that are performed by an individual
Dysfunctional tension	Tension that leads to negative stress
Early retirement	A downsizing effort whereby employees close to retirement are given some incentive to leave the company earlier than expected
Economic strike	An impasse that results from labor and management’s ability to agree on the wages, hours, terms, and conditions of a “new” contract
Economic value added (EVA):	A firm’s net operating profit after the cost of capital is deducted
Effort-performance relationship	The likelihood that putting forth the effort will lead to successful performance on the job
E-learning:	The use of the Internet or an organizational intranet to conduct training on-line
Employee assistance program:	One that provides counseling and other help to employees having emotional, physical, or other personal problems
Employee benefits	Membership-based, nonfinancial rewards offered to attract and keep employees
Employee counseling	A process whereby employees are guided in overcoming performance problems
Employee development	Future-oriented training, focusing on the personal growth of the employee
Employee handbook	A booklet describing the important aspects of employment an employee needs to know
Employee leasing	Hiring “temporary” employees for long periods of time
Employee monitoring	An activity whereby the company is able to keep informed of its employees’ activities
Employee referrals	A recommendation from a current employee regarding a job applicant
Employee Retirement Income Security Act	Law passed in 1974 designed to protect employee retirement benefits
Employee rights	A collective term dealing with varied employee protection practices in an organization
Employee stock ownership plan (ESOP):	A plan whereby employees gain stock ownership in the organization for which they work
Employee training	Present-oriented training, focusing on individuals’ current jobs
Employment “test”:	Any employment procedure used as the basis for making an employment-related decision
Employment contract:	Agreement that formally outlines the details of employment
Employment legislation	Laws that directly affect the hiring, firing, and promotion of individuals
Employment-at-will (EAW):	A common law doctrine stating that employers have the right to hire, fire, demote, of promote whomever they choose, unless there is a law or contract to the contrary
Encapsulated development:	Situation in which an individual learns new methods and ideas in a development course and returns to a work unit that is still bound by old attitudes and methods
Encounter stage	The socialization stage where individuals confront the possible dichotomy between their organizational expectations and reality
Environmental influences	Those factors outside the organization tat directly affect HRM operations
Environmental scanning:	Process of studying the environment of the organization to pinpoint opportunities and threats
Equal employment opportunity (EEO):	Individuals should have equal treatment in all employment-related actions
Equal Pay Act	Passed in 1963, this act requires equal pay for equal work
Equity:	The perceived fairness of what the person does compared with what the person receives
Equity:	The perceived fairness between what a person does and what the person receives
Ergonomics:	The study and design of the work environment to address physiological and physical demands on individuals
Essay appraisal	A performance appraisal method whereby an appraiser writes a narrative about the employee
Essential job functions:	Fundamental duties of a job
Essential job functions:	Fundamental duties of a job
Establishment phase	A career stage in which one begins to search for work.  It includes getting one’s first job
Executive Order 10988	Affirmed the right of federal employees to join unions and granted restricted bargaining rights to these employees
Executive Order 11491	Designed to make federal labor relations more like those in the private sector.  Also established the Federal Labor Relations Council
Exempt employees:	Employees to whom employers are not required to pay overtime under the Fair Labor Standards Act
Exit interview:	An interview in which individuals are asked to identify reasons for leaving the organization
Expatriates	Individuals who work in a country in which they are not citizens of that country
Exploration phase	A career stage that usually ends in one’s mid-twenties as one makes the transition form school to work
External dimension	Te objective progression of steps through a given occupation
Extinction	The elimination of any reinforcement that maintains behavior
Extranet:	An Internet-linked network that allows employees access to information provided by external entities
Fact-finder	A neutral third-party individual who conducts a hearing to gather evidence and testimony from the parties regarding the differences between them
Factor comparison method	A method of job analysis in which job factors are compared to determine the worth of the job
Fair Credit Reporting Act	Requires an employer to notify job candidates of its intent to check into their credit
Fair Labor Standards Act	Passed in 1938, this act established laws outlining minimum wage, overtime pay, and maximum hour requirements for most U.S. workers
Family and Medical Leave Act	Federal legislation that provides employees up to twelve weeks of unpaid leave each year to care for family members, or for their own medical reasons
Family-friendly benefits	Flexible benefits that are supportive of caring for one’s family
Family-friendly organization	Organizations that provide benefits that support employees’ caring for their families
Federal agency guidelines	Guidelines issued by federal agencies charged with ensuring compliance with equal employment federal legislation explaining recommended employer procedures in detail
Federal Mediation and Conciliation Service	A government agency that assists labor and management in settling their disputes
Federation:	Group of autonomous national and international unions
Feedback:	The amount of information received about how well or how poorly one has performed
Flexible benefits plan:	One that allows employees to select the benefits the prefer from groups of benefits established by the employer
Flexible spending account:	Account that allows employees to contribute pretax dollars to by additional benefits
Flexible spending accounts	Special benefits accounts that allow the employee to set aside money on a pretax basis to pay for certain benefits
Flexible staffing:	Use of recruiting sources and workers who are not traditional employees
Flextime:	Scheduling arrangement in which employees work a set number of hours per day by vary starting and ending times
Forced distribution method	Similar to grading on a curve; predetermined percentages of ratees are place in various performance categories
Forced distribution:	Performance appraisal method in which ratings of employees’ performance are distributed along a bell-shaped curve
Forced-choice appraisal	A type of performance appraisal method in which the rater must choose between two specific statements about an employee’s work behavior
Forecasting:	Use of information from the past and present to identify expected future conditions
Functional tension	Positive tension that creates the energy for an individual to act
Gainsharing:	The sharing with employees of greater-then-expected gains in profits and/or productivity
Garnishment:	A court action in which a portion of an employee’s wages is set aside to pay a debt owed a creditor
Glass ceiling:	Discriminatory practices that have prevented women and other protected-class members from advancing to executive-level jobs
Global village	The production and marketing of goods and services worldwide
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
Good faith bargaining	A term that means both parties are communicating and negotiating and that proposals are being matched with counterproposals with both parties making every reasonable effort to arrive at agreements.  It does not mean that either party is compelled to agree to a proposal
Good faith effort strategy	Employment strategy aimed at changing practices that have contributed in the past to excluding or underutilizing protected groups
Graphic rating scale	A scale that lists a number of traits and a range of performance for each.  The employee is then rated by identifying the score that best describes his or her level of performance for each trait
Graphic rating scale:	A scale that allows the rater to mark an employee’s performance on a continuum
Graphology	Handwriting analysis
Green-circled employee:	An incumbent who is paid below the range set for the job
Grievance arbitration:	Means by which a third party settles disputes arising from different interpretations of a labor contract
Grievance procedures:	Formal channels of communications used to resolve grievances
Grievance:	Complaint formally stated in writing
Griggs v. The Duke Power Company Case	Heard by the Supreme Court in which the plaintiff argued that his employer’s requirement that coal handlers be high school graduates was unfairly discriminatory.  In finding for the plaintiff, the court ruled that discrimination need not be overt to be illegal, that employment practices must be related to job performance, and that the burden of proof is on the employer to show that hiring standards are job related
Group interview method	Meeting with a number of employees to collectively determine what their jobs entail
Group order ranking	A relative standard of performance characterized as placing employees into a particular classification, such as the “top one-fifth”
Guaranteed fair treatment	Employer programs that are aimed at ensuring that all employees are treated fairly, generally by providing formalized well-documented, and highly publicized vehicles through which employees can appeal any eligible issues
Halo effect:	Rating a person high on all items because of performance in one area
Hawthorne studies	A series of studies that provided new insights into group behavior
Hazard communication standard	Requires organizations to communicate to its employees hazardous chemicals they may encounter on the job and how to deal with them safely
Health Maintenance Act	Established the requirement that companies offering traditional health insurance to its employees must also offer alternative health-care options
Health maintenance organization (HMO):	Managed care plan that provides services for a fixed period on a prepaid basis
Health promotion:	A supportive approach to facilitate and encourage employees to enhance healthy actions and lifestyles
Health:	A general state of physical, mental, and emotional well-being
Holland vocational preferences	An individual occupational personality as it relates to vocational themes
Honesty tests	A specialized paper and pencil test designed to assess one’s honesty
Host-country national	Hiring a citizen for the host country to perform certain jobs in the global village
Hostile environment:	Sexual harassment where an individual’s work performance or psychological well-being is unreasonably affected by intimidating or offensive working conditions
Hot-stove rule	Discipline should be immediate, provide ample warning, be consistent, and impersonal
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 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
HR strategies:	Means used to anticipate and manage the supply of and demand for human resources
Human resource information system (HRIS):	An integrated system designed providing information used in HR decision making
Human resource planning:	Process of analyzing and identifying the need for and availability of human resources so that the organization can meet its objectives
Human resources inventory	Describes the skills that are available within the organization
Human Resources management:	The design of formal systems in an organization to ensure effective and efficient use of human talent to accomplish organizational goals
Illegal issues:	Collective bargaining issues that would require either party to take illegal action
Immediate confirmation:	The concept that people learn best if reinforcement and feedback is given after training
Imminent danger	A condition where an accident is about to occur
Impasse	A situation where labor and management cannot reach a satisfactory agreement
Implied employment contract	Any organizational guarantee or promise about job security
Impression management	Influencing performance evaluations by portraying an image that is desired by the appraiser
IMPROSHARE	A special type of incentive plan using a specific mathematical formula for determining employee bonuses
Incentive plan	A plan in which a production standard is set for a specific work group, and its members are paid incentives if the group exceeds the production standard
Incident rate	Number of injuries, illnesses, or lost workdays as it relates to a common base of 100 fulltime employees
Independent contractors:	Workers who perform specific services on a contract basis
Individual performance-organizational goal relationship	The likelihood that successful performance on the job will lead to the attainment of organizational goals
Individual retirement account (IRA):	A special account in which an employee can set aside funds that will not be taxed until the employee retires
Individual-centered career planning:	Career planning that focuses on individuals’ careers rather than on organizational needs
Industrial union:	One that includes many persons working in the same industry or company, regardless of jobs held
Informal training:	Training that occurs through interactions and feedback among employees
In-house development centers	A company-based method for exposing prospective manager to realistic exercises to develop improved management skills
Insubordination	Willful disregard or disobedience of the boss’s authority or legitimate order; criticizing the boss in public
Integrated disability management program:	A benefit that combines disability insurance programs and efforts to reduce workers’ compensation claims
Integrative bargaining	A cooperative strategy in which a common goal is the focus of negotiations
Interest arbitration	An impasse resolution technique used to settle contract negotiation disputes
Intranet:	An organizational network that operates over the Internet
Job analysis:	Systematic way to gather and analyze information about the content, context, and the human requirements of jobs
Job criteria:	Important elements in a given job
Job description	Identification of the tasks, duties, and responsibilities of a job
Job design:	Organizing tasks, duties, and responsibilities into a productive unit of work
Job enlargement:	Broadening the scope of a job by expanding the number of different tasks to be performed
Job enrichment	Increasing the depth of a job by adding the responsibility for planning, organizing, controlling, and evaluating
Job evaluation:	The systematic determination of the relative worth of jobs within an organization
Job instruction training	A systematic approach to OJT consisting of four basic steps
Job posting:	A system in which the employer provides notices of job openings and employees respond to apply
Job rotation:	The process of shifting a person from job to job
Job rotation:	The process of shifting an employee from job to job
Job satisfaction:	A positive emotional state resulting from evaluating one’s job experience
Job specifications:	The knowledge, skills, and abilities (KSAs) and individual needs to perform a job satisfactorily
Job:	Grouping of tasks, duties, and responsibilities that constitutes the total work assignment for employees
Jungian personality typology	Four dimensions of personality matched to work environments
Just cause:	Reasonable justification for taking employment-related action
Karoshi	A Japanese term meaning death fro overworking
Keogh plan:	A type of individualized pension plan for self-employed individuals
Labor force population:	All individuals who are available for selection if all possible recruitment strategies are used
Labor markets:	The external supply pool from which organizations attract employees
Landrum-Griffin Act	The law aimed at protecting union members from possible wrongdoing on the part of their unions
Late-career phase	A career stage in which individuals are no longer learning about their jobs, nor is it expected that they should be trying to outdo levels of performance from previous years
Leading	A management function concerned with directing the work of others
Learning curve	Depicts the rate of learning
Learning organization	An organization “skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights
Legislating love	Company guidelines on how personal relationships may exist at work
Leniency error	A means by which performance appraisal can be distorted by evaluating employees against one’s own value system
Line manager	A manager who is authorized to direct the work of subordinates and responsible for accomplishing the organization’s goals
Lock out/tag out regulations:	Requirements that locks and tags be used to make equipment inoperative for repair or adjustment
Lockout	A refusal by the employer to provide opportunities to work
Lockout	A situation in labor-management negotiations whereby management prevents union members from returning to work
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
Managed care:	Approaches that monitor and reduce medical costs using restrictions and market system alternatives
Management assessment centers	A situation in which management candidates are asked to make decisions in hypothetical situations and are scored on their performance.  It  usually also involves testing and the use of management games
Management by objectives (MBO):	Specifies the performance goals that an individual and her or his manager agree to try to attain within an appropriate length of time
Management development	Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills
Management rights	Items that are not part of contract negotiations, such as how to run the company, or how much to charge for products
Management rights:	Those rights reserved to the employer to manage, direct, and control its business
Management thought	Early theories of management that promoted today’s HRM operations
Mandated benefits:	Ones that employers in the US must provide to employees by law
Mandatory issues:	Collective bargaining issues identified specifically by labor laws or court decisions as a subject to bargaining
Marginal functions:	Duties that are part of a job but are incidental or ancillary to the purpose and nature of a job
Market line:	The line on a graph showing the relationship between job value, as determined by job evaluation points and pay survey rates
Marshall v. Barlow, Inc	Supreme Court case that stated an employer could refuse an OSHA inspection unless OSHA had a search warrant to enter the premises
Massed practice:	The performance of all of the practice at once
Mature workers	Those workers born before 1946
Maturity curve:	Curve that depicts the relationship between experience and pay rates
McDonnell-Douglas Corp v. Green	A four-part test used to determine if discrimination has occurred
Mediation:	Process by which a third party assists negotiators in reaching a settlement
Mediation:	Process by which a third party assists negotiators in reaching a settlement
Membership-based rewards	Rewards that o to all employees regardless of performance
Mentoring:	A relationship in which experienced managers aid individuals in the earlier stages of their careers
Merit pay	An increase in one’s pay, usually give on an annual basis
Merit Pay (merit raise)	Any salary increase awarded to an employee based on his or her individual performance
Metamorphosis stage	The socialization stage whereby the new employee must work out inconsistencies discovered during the encounter stage
Mid-career phase	A career stage marked by a continuous improvement in performance, leveling off in performance or the beginning of deterioration of performance
Mission statement	The reason an organization is in business
Modular plans	A flexible benefit system whereby employees choose a pre-designed package of benefits
Motivating potential score	A predictive index suggesting the motivation potential of a job
Motivation:	The desire within a person causing that person to act
National emergency strike:	A strike that would impact the notional economy significantly
National emergency strikes	Strikes that might “imperil the national health and safety”
National Institute for Occupational Safety and Health (NIOSH)	The government agency that researches and sets OSHA standards
National Labor Relations Board (NLRB)	The agency created by the Wagner Act to investigate unfair labor practice charges ad to provide for secret-ballot elections and majority rule in determining whether or not a firm’s employees want a union
Negative reinforcement	An unpleasant reward
Nepotism:	Practice of allowing relatives to work for the same employer
NLRB v. Bildisco & Bildisco	Upheld the premise that a company could file for bankruptcy to have a labor contract nullified
Non-compete agreement:	Agreement that prohibits an individual who leave the organization from competing with the employer in the same line of business for a specified period of time
Non-contributory plan:	Pension plan in which all the funds for pension benefits are provided by the employer
Nondirective interview:	Interview that uses questions that are developed from the answers to previous questions
Non-exempt employees:	Employees who must be paid overtime under the Fair Labor Standards Act
Norms	Tells group members what they ought or ought not do in certain circumstances
Norris-LaGuardia Act	This law marked the beginning of the era of strong encouragement of unions and guaranteed to each employee the right to bargain collectively “free from interference, restraint, of coercion”
Norris-LaGuardia Act	Labor law act that set the stage for permitting individuals full freedom to designate a representative of their choosing to negotiate terms and conditions of employment
Observation method	A job analysis technique in which data are gathered by watching employees work
Occupational Safety and Health Act	The law passed by Congress in 1970 “to assure so far as possible every working man and woman in the nation safe and healthful working conditions and to preserve our human resources
Occupational Safety and Health Act	Set standards to ensure safe and healthful working conditions and provided stiff penalties for violators
Ombudsman:	Person outside the normal chain of command who acts as a problem solver for both management and employees
Open shop:	Workers are not required to join or pay dues
Operant conditioning	A type of conditioning in which behavior lead to a reward or prevents punishment
Opinion surveys	Communication devices that use questionnaires to regularly ask employees their opinions about the company, management, and work life
Organizational commitment:	The degree to which employees believe in and accept organizational goals and desire to remain with the organization
Organizational culture:	The shared values and beliefs of a workforce
Organizational culture:	The shared values and beliefs of a workforce
Organizational development (OD)	A method aimed at changing the attitudes, values, and beliefs of employees so that employees can improve the organization
Organization-centered career planning:	Career planning that focuses on jobs and on identifying career paths that provide for the logical progression of people between jobs in an organization
Orientation:	The planned introduction of new employees to their jobs, co-workers, and the organization
Outdoor training	Specialized training that occurs outdoors that focuses on building self-confidence and teamwork
Outplacement	A process whereby an organization assists employees, especially those being severed from the organization, in obtaining employment
Outplacement counseling	A systematic process by which a terminated person is trained and counseled in the techniques of self-appraisal and securing a new position
Paid time-off (PTO) plan:	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
Paired comparison	Ranking individuals’ performance by counting the number of times any one individual is the preferred member when compared with all other employees
Paired comparison method	Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair
Panel interview:	Interview in which several interviewers interview the candidate at the same time
Participative management	A management concept giving employees more control over the day-to-day activities on their job
Pay compression	: Situation in which pay differences among individuals with different levels of experience and performance in the organization becomes small
Pay equity:	Similarity in pay for jobs requiring comparable levels of knowledge, skill, and ability, even if actual job duties differ significantly
Pay equity:	Similarity in pay for all jobs requiring comparable levels of knowledge, skills, and abilities, even if actual duties and market rates differ significantly
Pay grade:	A grouping of individual jobs having approximately the same job worth
Pay survey:	A collection of data on compensation rates for workers performing similar jobs in other organizations
Pay-for-performance	Rewarding employees based on their performance
Peer evaluation	A performance evaluation situation in which coworkers provide input into the employee’s performance
Peer orientation	Coworker assistance in orienting new employees
Peer review panel:	A panel of employees hear appeals from disciplined employees and make recommendations or decisions
Pension Benefit Guaranty Corporation	The organization that lays claim to corporate assets to pay or fund inadequate pension programs
Pension plans:	Retirement benefits established and funded by employers and employees
Performance analysis	Verifying that there is a performance deficiency and determining whether that deficiency should be rectified through training or through some other means (such as transferring the employee)
Performance appraisal:	The process of evaluating how well employees perform their jobs when compared to a set of standards, and then communicating that information to employees
Performance consulting:	A process in which a trainer and the organizational client work together to boost workplace performance in support of business goals
Performance management systems:	Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance
Performance simulation test	Work sampling and assessment centers focusing on actual job activities
Performance standards:	Indicators of what the job accomplishes and how performance is measured in key areas of the job description
Performance standards:	Expected levels of performance
Performance:	What an employee does or does not do
Permissive issues:	Collective bargaining issues that are not mandatory but relate to certain jobs
Perquisites (perks):	Special benefits – usually noncash items – for executives
Person-job fit:	Matching the KSAs of people with the characteristics of jobs
Personnel replacement charts	Company records showing present performance and promotability of inside candidates for the most important positions
Person-organization fit:	The congruence between individuals and organizational factors
Phased retirement:	Approach in which employees reduce their workloads and pay
Physical ability tests:	Tests that measure individual abilities such as strength, endurance, and muscular movement
Physiological symptoms	Characteristics of stress that manifest themselves as increased heart and breathing rates, higher blood pressure, and headaches
Placement:	Fitting a person to the right job
Plant Closing Bill	Also known as WARN, requires employers to give sixty days’ advanced notice of pending plant closings or major layoff
Plant closing law	The Worker Adjustment and Retraining Notification Act, which requires notifying employees in the event an employer decides to close its facility
Plant-wide incentives	An incentive system that reward all members of the plant based on how well the entire group performed
Plateauing	A condition of stagnating in one’s current job
Point method	Breaking down jobs based on identifiable criteria and the degree to which these criteria exist on the job
Policies:	General guidelines that focus organizational actions
Portability:	A pension plan feature that allows employees to move their pension benefits from one employer to another
Position Analysis Questionnaire	A job analysis technique that rates jobs on 194 elements I six activity categories
Positive Reinforcement	Providing a pleasant response to an individual’s actions
Post-training performance method	Evaluating training programs based on how ell employees can perform their jobs after they have received the training
Prearrival stage	The socialization process stage that recognizes individuals arrive in an organization with a set of organizational values, attitudes, and expectations
Predictive validity:	Measured when test results of applicants are compared with subsequent job performance
Preferred provider organization (PPO):	A healthcare provider that contracts with an employer group to provide healthcare services to employees at a competitive rate
Pregnancy Discrimination Act (PDA)	An amendment to Title VII of the Civil Rights Act that prohibits sex discrimination based on “pregnancy, childbirth, or related medical conditions”
Pre-post training performance method	Evaluating training programs based the difference in performance before and after one receives training
Pre-post training performance with control group	Evaluating training by comparing pre- and post training results with individuals who did not receive the training
Preretirement counseling	Employer-sponsored counseling aimed at providing information to ease the passage of employees into retirement
Primacy effect:	Information received first gets the most weight
Primary research:	Research method in which data are gathered firsthand for the specific project being conducted
Privacy Act	Requires federal government agencies to make available information in an individual’s personnel file
Procedural justice:	The perceived fairness of the process and procedures used to make decisions about employees
Procedural justice:	Perceived fairness of the process used to make decisions about employees
Procedures:	Customary methods of handling activities
Production cells:	Groupings of workers who produce entire products or components
Productivity:	A measure of the quantity and quality of work done, considering the cost of the resources used
Profit sharing:	A system to distribute a portion of the profits of the organization to employees
Programmed instruction	Material is learned in highly organized, logical sequence, that requires the individual to respond
Protected class:	Individuals within a group identified for protection under equal employment laws and regulation
Psychological contract:	The unwritten expectations employees and employers have about the nature of their work relationships
Psychological symptoms	Characteristics of stress that manifest themselves as tension, anxiety, irritability, boredom, and procrastination
Psychomotor tests:	Test that measure dexterity hand-eye coordination, arm-hand steadiness, and other factors
Public policy violation	Prohibiting the termination of an employee for refusing to obey an order the employee considered illegal
Qualifications inventories	Manual or computerized systematic records listing employees’ education, career and development interests, languages, special skills, and so on to be used in forecasting inside candidates for promotion
Quality circle:	Small group of employees who monitor productivity and quality and suggest solutions to problems
Quid pro quo:	Sexual harassment in which employment outcomes are linked to the individual granting sexual favors
Quota strategy	Employment strategy aimed at mandating the same results as the food faith effort strategy through specific hiring and promotion restrictions
Railway Labor Act	Provided the initial impetus to widespread collective bargaining
Ranking method	The simplest method of job evaluation that involves ranking each job relative to all other jobs, usually based on overall difficulty
Ranking method	Rating employees from highest to lowest
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 member vote to accept the terms of a negotiated labor agreement
Realistic job preview	A selection device that allows job candidate to learn negative as well as positive information about the job and organization
Realistic job preview (RJP):	The process through which a job applicant receives an accurate picture of a job
Reasonable accommodation:	A modification or adjustment to a job or work environment for a qualified individual with a disability
Recruiting:	The process of generating a pool of qualified applicants for organizational jobs
Red-circled employee:	An incumbent who is paid above the range set for the job
Reduced work hours	A downsizing concept whereby employees work fewer than forty hours and are paid accordingly
Reengineering	Radical, quantum change in an organization
Regency effect:	Error in which the rater gives greater weight to recent events when appraising an individual’s performance
Reinforcement:	People tend to repeat responses that give them some type of positive reward and avoid actions associated with negative consequences
Reject errors	Rejecting candidates who would later perform successfully
Relative standards	Evaluating an employee’s performance by comparing the employee with other employees
Reliability:	Consistency with which a test measures an item
Replacement charts	HRM organizational charts indicating positions that may become vacant in the near future and the individuals who may fill the vacancy
Representation certification	The election process whereby union members vote in an union as their representative
Representation decertification	The election process whereby union members vote in a union as their representative
Responsibilities:	Obligations to perform certain tasks and duties
Responsibilities:	Obligations to be accountable for actions
Restricted policy	An HRM policy that results in the exclusion of a class of individuals
Retaliation:	Punitive actions taken by employers against individuals who exercise their legal rights
Return on investment (ROI):	Calculation showing the value of expenditures for HR activities
Reverse discrimination:	When a person is denied an opportunity because of preferences given to protected-class individuals who may be less qualified
Right to privacy:	Defined for individuals as the freedom from unauthorized and unreasonable intrusion into personal affairs
Rights:	That which belongs to a person by law, nature, or tradition
Rightsizing	Linking employee needs to organizational strategy
Right-to-sue letter:	A letter issued by the EEOC that notifies a complainant that he or she has 90 days in which to file a personal suit in federal court
Right-to-work laws:	State laws that prohibit requiring employees to join unions as a condition of obtaining or continuing employment
Roles	Behaviors that job incumbents are expected to display
Rules:	Specific guidelines that regulate and restrict the behavior of individuals
Sabbatical leave:	Paid time off the job to develop and rejuvenate oneself
Safety:	Condition in which the physical well-being of people is protected
Salaries:	Consistent payments made each period regardless of number of hours worked
Salary survey	A survey aimed at determining prevailing wage rates.  A good salary survey provides specific wage rates for specific jobs.  Formal written questionnaire surveys are the most comprehensive, but telephone surveys and newspaper ads are also sources of information
Salting:	Practice in which unions hire and pay people to apply for jobs at certain companies
Scanlon plan	An incentive plan developed in 1937 by Joseph Scanlon and designed to encourage cooperation, involvement and sharing of benefits
Scanlon plan	An organization-wide incentive program focusing on cooperation between management and employees through sharing problems, goals and ideas
Scientific management	A set of principles designed to enhance worker productivity
Secondary research:	Research method using data already gathered by others and reported in books, articles in professional journals, or other sources
Security audit:	A comprehensive review of organizational security
Security:	Protection of employees and organizational facilities
Selection criteria:	Characteristic that a person must have to do a job successfully
Selection rate:	The percentage hire from a given group of candidates
Selection:	Process of choosing individuals who have needed qualifications to fill jobs in an organization
Self-directed work team:	One composed of individuals assigned a cluster of tasks, duties, and responsibilities to be accomplished
Self-efficacy:	A person’s belief that he/she can successfully learn the training program content
Seniority:	Time spent in the organization or on a particular job
Sensitivity training	A method for increasing employees’ insights into their own behavior by candid discussions in groups led y special trainer
Separation agreement:	Agreement in which a terminated employee agrees not to sue the employer in exchange for specified benefits
Serious health condition:	A heath condition requiring inpatient, hospital, hospice, or residential medical care or continuing physician care
Severance pay:	A security benefit voluntarily offered by employers to employees who lose their jobs
Sexual harassment:	Action that are sexually directed, are unwanted, and subject the worker to adverse employment conditions or crate a hostile work environment
Shamrock team:	One composed of a core of members, resource experts who join the team as appropriate, and part-time/temporary members as needed
Shared services	Sharing HRM activities among geographically dispersed divisions
Sick building	An unhealthy work environment
Similarity error	Evaluating employees based on the way an evaluator perceives himself or herself
Simulated training	Training employees on special off-the-job equipment, and in airplane pilot training, whereby training costs and hazards can be reduced
Simulation:	A development technique that requires participants to analyze a situation and decide the best course of action based on the data given
Simulations	Any artificial environment that attempts to closely mirror and actual condition
Situational interview	Structured interview were questions related directly to actual work activities
Situational interview:	A structured interview composed of questions about how applicants might handle specific job situations
Skill deficiencies	The lacking of basic abilities to perform many of today’s jobs
Skill variety	A situation in which jobs require a number of skills
Skill variety:	The extent to which the work requires several different activities for successful completion
Social learning theory	Theory of learning that views learning occurring through observation and direct experience
Socialization	A process of adaptation that takes place as individuals attempt to learn the values and norms of work roles
Spa of control	The number of employees a supervisor con effectively and efficiently direct
Spaced practice:	Several practice sessions spaced over a period of hours or days
Speak up! programs	Communications programs that allow employees to register questions, concerns, ad complaints about work-related matters
Special-purpose team:	Organizational team formed to address specific problems, improve work processes, and enhance product and service quality
Staff manager	A manager who assists and advises line mangers
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
Strategic goals	Organization-wide goals setting direction for the next five to twenty years
Strategic human resource management:	Organizational use of employees to gain or keep a competitive advantage against competitors
Stress	A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important
Stress interview	An interview designed to see how the applicants handle themselves under pressure
Stress interview:	Interview designed to create anxiety and put pressure on an applicant to see how the person responds
Stressors	Something that causes stress in an individual
Strike:	Work stoppage in which union members refuse to work in order to put pressure on an employer
Structured interview:	Interview tat uses a set of standardized questions asked of all job applicants
Structured interviews	An interview in which there are fixed questions that are presented to every applicant
Structured questionnaire method	A specifically designed questionnaire on which employees rate tasks they perform on their jobs
Substance abuse:	The use of illicit substances or the misuse of controlled substances, alcohol, or other drugs
Succession planning:	Process of identifying a longer-term plan for the orderly replacement of key employees
Suggestion system:	A formal method of obtaining employee input and upward communication
Summary plan description	An ERISA requirement of explaining to employees their pension program and rights
Sunshine Laws	Laws tat exist in some states that mandate that labor-management negotiations be open to the public
Survey feedback	A method that involves surveying employees’ attitudes and providing feedback to department managers so that problems can be solved by the managers and employees
Sympathy strike	A strike that takes place when one union strikes in support of the strike of another
Taft-Hartley Act	Also known as the Labor Management Relations Act, this law prohibited union unfair labor practices and enumerated the rights of employees as union members.  It also enumerated the rights of employers
Task identity	A situation in which a worker completes all phases of a job
Task identity:	The 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
Task significance	A situation in which the employee has substantial impact on the lives of other employees
Task significance:	The impact the job has on other people
Task:	A distinct, identifiable work activity composed of motions
Team building	Improving the effectiveness of teams such as corporate officers and division directors trough use of consultants, interviews, and teambuilding meetings
Team interview:	Interview in which applicants are interviewed by the team members with whom they will work
Technical conference method	A job analysis technique that involves extensive input form the employee’s supervisor
Telecommuting:	Process of going to work via electronic computing and telecommunications equipment
Top-down programs	Communications activities including in-house television centers, frequent roundtable discussions, and in-house newsletters that provide continuing opportunities for the firm to let all employees by updated on important matters regarding the firm
Total quality management	A continuous process improvement
Training:	A process whereby people acquire capabilities to aid in the achievement of organizational goals
Transition stay bonus:	Extra payment for employees whose jobs are being eliminated, thereby motivating them to remain with the organization for a period of time
Trend analysis	Study of a firm’s past employment needs over a period of years to predict future needs
Turnover:	Process in which employees leave the organization and have to be replaced
Undue hardship:	Significant difficulty or expense imposed on an employer when making an accommodation for individuals with disabilities
Union authorization card:	Card signed by an employee to designate a union as his of her collective bargaining agent
Union avoidance	A company tactic of providing to employees those things unions would provide without employees having to join the union
Union busting	A company tactic designed to eliminate the union that represents the company’s employees
Union security arrangements	Labor contract provisions designed to attract and retain dues-paying union members
Union security provisions:	Contract clauses to aid the union is obtaining and retaining members
Union steward:	An employee elected to serve as the first-line representative of unionized workers
Union:	A formal association of workers that promotes the interests of its members through collective action
Unit labor cost:	Computed by dividing the average cost of workers by their average levels of output
Unsafe acts	Behavior tendencies and undesirable attitudes that cause accidents
Unsafe conditions	The mechanical and physical conditions that cause accidents
Upward appraisals	An employee appraisal process whereby employees evaluate their supervisors
Utility analysis:	Analysis in which economic or other statistical models are built to identify the costs and benefits associated with specific HR activities
Utilization analysis:	An analysis that identifies the number of protected-class members employed and the types of jobs they hold in an organization
Utilization review:	An audit and review of the services and costs billed by health-care providers
Validity:	Extent to which a test actually measures what it says it measures
Variable pay:	Type of compensation linked to individual, team, or organizational performance
Variable pay:	Compensation linked to individual, team, and organizational performance
Vesting:	The right of employees to receive benefits from their pension plans
Virtual reality	A process whereby the work environment is simulated by sending messages to the brain
Wage curve	Shows the relationship between the value of the job and the average wage paid for this job
Wage curve	The result of the plotting of points of established pay grades against wage base rates to identify the general pattern of wages and find individuals whose wages are out of line
Wages:	Payments directly calculated on the amount of time worked
Wagner Act	This law banned certain types of unfair labor practices and provided for secret-ballot elections and majority rule for determining whether or not a firm’s employees want to unionize
Walk-ins	Unsolicited applicants
Walsh-Healey Public Contract Act	A law enacted in 1936 that requires minimum-wage and working conditions for employees working on any government contract amounting to more than $10,000
Ward Cove v. Atonio	US Supreme Court decision that makes it difficult to prove a case of unlawful discrimination against an employer
Weighted application form	A special type of application form where relevant applicant information is used to determine the likelihood of job success
Wellness programs:	Programs designed to maintain or improve employee health before problems arise
Well-pay:	Extra pay for not taking sick leave
Whistle-blowers:	Individuals who report real or perceived wrongs committed by their employers
Whistle-blowing	A situation in which an employee notifies authorities of wrongdoing in an organization
Wildcat strike	An unauthorized strike occurring during the term of a contract
Wildcat strike	An unauthorized and illegal strike that occurs during the terms of an existing contract
Work sample tests:	Tests that require an applicant to perform a simulated job task
Work sampling	A selection device requiring the job applicant to actually perform a small segment of the job
Work:	Effort directed toward producing or accomplishing results
Worker Adjustment and Retraining Notification Act	Federal law requiring employers to five sixty days’ notice of pending plant closing or major layoff
Worker involvement programs	Programs that aim to boost organizational effectiveness by getting employees to participate in planning, organizing and managing their jobs
Workers’ compensation:	Benefits provided to persons injured on the job
Workflow analysis:	A study of the way work (inputs, activities, and outputs) moves through an organization
Wrongful discharge:	Occurs when an employer terminates an individual’s employment for reasons that are improper or illegal
Yellow-dog contract	An agreement whereby employees state that they are not now, nor will they be in the future, union member
Yield ratios:	A comparison of the number of applicants at one stage of the recruiting process to the number at the next stage