Updated: HR Management Key Terms

Updated: HR Management Key Terms

#HR_Management_Dictionary, #Human_Resources_Management_Glossary, #Key_Terms_of_ Human Resources Management, Meanings of HR Management Terms, Definitions of HR Management Key Terms


The Strategic Role of Human Resource Management


administration  costs  administration  expenses:  plural     the  costs  of  management,  not  including  production,  marketing  or  distribution  costs

annual  income:  money  received  during  a  calendar  year

annual  report:  a  report  of  a  company’s  financial  situation  at  the  end  of  a  year,  sent  to  all  the  shareholders

Authority: The right to make decisions, to direct the work of others, and to give orders.

balance  sheet:  a  statement  of  the  financial  position  of  a  company  at  a  particular  time  such  as  the  end  of  the  financial  year  or  the  end  of  a  quarter  showing  the  company’s  assets  and  liabilities 

bankrupt:  a  person  who  has  been  declared  by  a  court  not  to  be  capable  of  paying  their  debts  and  whose  affairs  are  put  into  the  hands  of  a  receiver

benchmarking:   the  practice  of  measuring  the  performance  of  a  company  against  the  performance  of  other  companies  in  the  same  sector 

bona  fide     trustworthy,  which  can  be  trusted

brainstorming  an  intensive  discussion  by  a  small  group  of  people  as  a  method  of  producing  new  ideas  or  solving  problems

budget  a  plan  of  expected  spending  and  income  for  a  period  of  time

bureaucracy   a  system  of  administration  where  an  individual  person’s  responsibilities  and  powers  are  strictly  defined  and  processes  are  strictly  followed

bureaucratic  following  strict  administrative  principles

code  of  conduct  the  guideline  showing  how  someone  (such  as  shop  assistants  or  railway  station  staff)  should  behave  towards  customers

competitive  edge  / competitive  advantage  an  advantage  that  one  company  or  product  has  over  its  rivals  in  the  market

competitive  pricing   the  practice  of  putting  low  prices  on  goods  so  as  to  compete  with  other  products

competitive advantage  Factors that allow an organization to differentiate its product or service from competitors to increase market share.

conflict  management  a  system  of  work  that  involves  identifying  possible  sources  of  conflict  within  an  organization  and  dealing  with  and  settling  conflicts  when  they  occur

conflict  of  interest  a  situation  where  a  person  or  firm  may  profit  personally  from  decisions  taken  in  an  official  capacity 

contingency  a  possible  state  of  emergency  when  decisions  will  have  to  be  taken  quickly

contingency  fund  money  set  aside  in  case  it  is  needed  urgently

contingency  plan  a  plan  which  will  be  put  into  action  if  something  unexpected  happens

corporate  culture   the  way  of  managing  a  corporation,  by  increasing  the  importance  of  the  corporation  itself,  and  therefore  the  loyalty  of  the  workforce  to  the  corporation,  the  general  feeling  and  atmosphere  within  an  organization  that  is  mainly  created  by  the  attitudes  of  its  managers  towards  their  work,  their  staff  and  their  customers  and  that  can  affect  such  things  as  productivity,  creativity,  and  customer  focus 

corporate  image  an  idea  which  a  company  would  like  the  public  to  have  of  it

cost leadership the enterprise aims to become the low-cost leader in an industry.

cost-benefit  analysis  the  process  of  comparing  the  costs  and  benefits  of  different  possible  ways  of  using  available  resources 

cost-effective  which  gives  good  value  when  compared  with  the  original  cost

critical  success  factors  plural     the  aspects  of  a  business  that  are  considered  to  be  most  necessary  for  it  to  be  able  to  achieve  its  aims  and  continue  to  operate  successfully  over  time

democratic  management  style  a  management  style  in  which  the  managers  involve  the  employees  in  decision-making  processes 

depreciation  a  reduction  in  value  of  an  asset

differentiation A firm seeks to be unique in its industry along dimensions that are widely valued by buyers.

feasibility  study the  careful  investigation  of  a  project  to  see  whether  it  is  worth  undertaking 

free  competition  the  fact  of  being  free  to  compete  without  government  interference 

free  market  economy  a  system  where  the  government  does  not  interfere  in  business  activity  in  any  way

free  market  economy  a  system  where  the  government  does  not  interfere  in  business  activity  in  any  way

free  trade  a  system  where  goods  can  go  from  one  country  to  another  without  any  restrictions 

functional  authority  the  authority  which  is  associated  with  a  job

Functional Control: The authority exerted by a personnel manager as a coordinator of personnel activities.

fund-raising       the  process  of  trying  to  get  money  for  a  charity

Gantt  chart  a  type  of  chart  used  in  project  management  to  plan  and  schedule  work,  setting  out  tasks  and  the  time  periods  within  which  they  should  be  completed 

general  audit  a  process  of  examining  all  the  books  and  accounts  of  a  company 

general  strike      a  strike  of  all  the  workers  in  a  country

general  trading   dealing  in  all  types  of  Goods

globalization: The tendency of firms to extend their sales or manufacturing to new markets abroad.

government  contractor  a  company  which  supplies  the  government  with  goods  by  contract 

government  economic  indicators    plural     statistics  which  show  how  the  country’s  economy  is  going  to  perform  in  the  short  or  long  term   

government  organization  an  official  body  run  by  the  government   

heavy  industry  an  industry  which  deals  in  heavy  raw  materials  such  as  coal  or  makes  large  products  such  as  ships  or  engines

holding  company  a  company  which  owns  more  than  50%  of  the  shares  in  another  company , the  American  English  for  this  is  a  proprietary  company, a  company  which  exists  only  or  mainly  to  own  shares  in  subsidiary  companies 

horse  trading  hard  bargaining  which  ends  with  someone  giving  something  in  return  for  a  concession  from  the  other  side

human  capital  the  employees  of  an  organization,  and  their  skills,  knowledge  and  experience,  considered  one  of  the  organization’s  assets


human  resource  information  system  (HRIS) an  information  system,  usually  a  computerized  one,  which  assists  managers  in  making  strategic  and  operational  decisions  in  the  field  of  human  resources  management. 

human  resources  management (HRM)  responsibility  for  an  organization’s  productive  use  of  and  constructive  dealings  with  its  employees

human  resources  manager  a  person  who  is  responsible  for  an  organization’s  productive  use  of  its  employees 

human resource:  The staffing functions of the management process or, the policies Management and practices needed to carry out the "people" or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

Implied Authority: The authority exerted by virtue of others' knowledge that he or she has access to top management.

independent  audit  an  audit  carried  out  by  an  auditor  who  is  independent  and  not  employed  by  the  company

indirect  costs  plural     costs  which  are  not  directly  related  to  the  making  of  a  product  (such  as  cleaning,  rent  or  administration)

industry  all  factories,  companies  or  processes  involved  in  the  manufacturing  of  products 

inflation  a  greater  increase  in  the  supply  of  money  or  credit  than  in  the  production  of  goods  and  services,  resulting  in  higher  prices  and  a  fall  in  the  purchasing  power  of  money

information  management  the  task  of  controlling  information  and  the  flow  of  information  within  an  organization,  which  involves  acquiring,  recording,  organizing,  storing,  distributing  and  retrieving  it  (Good  information  management  has  been  described  as  getting  the  right  information  to  the  right  person  in  the  right  format  at  the  right  time.)

information  system  a  system  of  storing  information  either  manually  or  by  computer 

information  technology (IT)  working  with  data  stored  on  computers

internal  audit  an  audit  carried  out  by  a  department  inside  the  company

internal  auditor  a  member  of  staff  who  audits  a  company’s  accounts

internal  auditor  a  member  of  staff  who  audits  a  company’s  accounts 

leadership  a  quality  that  enables  a  person  to  manage  or  administer  others 

learning  organization  an  organization  whose  employees  are  willing  and  eager  to  share  information  with  each  other,  to  learn  from  each  other,  and  to  work  as  a  team  to  achieve  their  goals

limited  liability  company  a  company  where  each  shareholder  is  responsible  for  repaying  the  company’s  debts  only  to  the  face  value  of  the  shares  they  own 

line  organization  the  organization  of  a  company  where  each  manager  is  responsible  for  doing  what  their  superior  tells  them  to  do

line authority: The authority to direct the activities of the people in his or her own department.

line manager: Authorized to direct the work of subordinates-they're always someone's boss. In addition, line managers are in charge of accomplishing the organization's basic goals.

management  function  the  duties  of  being  a  manager 

management  ratio  the  number  of  managers  for  every  hundred  employees  in  an  organization

management process:  The   five   basic   functions   of   management are planning, organizing, staffing, leading, and controlling.

manager  the  head  of  a  department  in  a  company

matrix  management  management  that  operates  both  through  the  hierarchical  chain  of  command  within  the  organization,  and  through  relationships  at  the  same  level  with  other  managers  working  in  other  locations  or  on  different  products  or  projects 

matrix  organization  a  flexible  organization  structure  where  authority  depends  on  the  expertise  needed  for  a  particular  task  and  overall  responsibility  is  shared  between  several  people

memo  a  short  message  sent  from  one  person  to  another  in  the  same  organization

memorandum  (and  articles)  of  association  legal  documents  setting  up  a  limited  company  and  giving  details  of  its  name,  aims,  authorized  share  capital,  conduct  of  meetings,  appointment  of  directors  and  registered  office

middle  manager     a  manager  of  a  department  in  a  company,  answerable  to  a  senior  manager  or  director 

mission: mission statement is a short statement of why an organization exists, what its overall goal is, identifying the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. A mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.

multinational  corporation   a  company  which  has  branches  or  subsidiary  companies  in  several  countries 

Murphy’s  law  law,  based  on  wide  experience,  which  says  that  in  commercial  life  if  something  can  go  wrong  it  will  go  wrong,  or  that  when  you  are  thinking  that  things  are  going  right,  they  will  inevitably  start  to  go  wrong 

net  asset  value  the  total  value  of  a  company  after  deducting  the  money  owed  by  it  (it  is  the  value  of  shareholders’  capital  plus  reserves  and  any  money  retained  from  profits) 

net  margin  the  percentage  difference  between  received  price  and  all  costs,  including  overheads

objective  something  which  a person or company hope  to  achieve

open-door  system  a  system  in  which  supervisors  are  always  available  at  work  to  talk  to  employees

operational  budget  a  forecast  of  expenditure  on  running  a  business

organic  organization  a  type  of  organization  with  little  formality  in  its  structure  and  procedures

Peter  principle  a  law,  based  on  wide  experience,  that  people  are  promoted  until  they  occupy  positions  for  which  they  are  incompetent

petty  cash  a  small  amount  of  money  kept  in  an  office  to  pay  small  debts

pie  chart  a  diagram  where  information  is  shown  as  a  circle  cut  up  into  sections  of  different  sizes

planning  the  process  of  organizing  how  something  should  be  done  in  the  future

policy  a  course  of  action  or  set  of  principles

primary  sector  industries  dealing  with  basic  raw  materials  (such  as  coal,  wood  or  farm  produce)

private  sector  all  companies  which  are  owned  by  private  shareholders,  not  by  the  state

procedure  manual  a  document  in  which  the  step-by-step  instructions  that  govern  the  way  in  which  an  organization  conducts  particular  activities  are  written  down 

productivity  the  rate  of  output  per  employee  or  per  machine  in  a  factory

profit  money  gained  from  a  sale  which  is  more  than  the  money  spent  on  making  the  item  sold  or  on  providing  the  service  offered 

program  evaluation  and  review  technique  (PERT) a  way  of  planning  and  controlling  a  large  project,  concentrating  on  scheduling  and  completion  on  time.

project  management   the  coordination  of  the  financial,  material  and  human  resources  needed  to  complete  a  project  and  the  organization  of  the  work  that  the  project  involves

public  ownership  a  situation  where  the  government  owns  a  business,  i.e.  where  an  industry  is  nationalized

public  relations  the  practice  of  building  up  and  keeping  good  relations  between  an  organization  and  the  public,  or  an  organization  and  its  employees,  so  that  people  know  and  think  well  of  what  the  organization  is  doing

quality  control  the  process  of  making  sure  that  the  quality  of  a  product  is  good

quid  pro  quo  money  paid  or  an  action  carried  out  in  return  for  something 

quorum  a  minimum  number  of  people  who  have  to  be  present  at  a  meeting  to  make  it  valid 

reconcile  to  make  two  financial  accounts  or  statements  agree 

role  culture  a  type  of  corporate  culture  that  assumes  that  employees  are  rational  and  that  roles  can  be  defined  and  discharged  using  clearly  defined  procedures

senior  management  the  main  directors  of  a  company 

shareholder  a  person  who  owns  shares  in  a  company

sleeping  partner  a  partner  who  has  a  share  in  the  business  but  does  not  work  in  it 

small-scale  enterprise  a  small  business, classified by  law of area according to the capital of the firm

sole  agent  a  person  who  has  the  sole  agency  for  a  company  in  an  area

solemn  and  binding  agreement  an  agreement  which  is  not  legally  binding,  but  which  all  parties  are  supposed  to  obey

staff manager: Assist and advise line managers in accomplishing the basic goals. HR managers are generally staff managers.

stakeholder  a  person  such  as  a  shareholder,  employee  or  supplier  who  has  a  stake  in  a  business

standard  letter  a  letter  which  is  sent  without  change  to  various  correspondents

start-up  the  beginning  of  a  new  company  or  new  product

status  quo  the  existing  structure  and  procedures  in  an  organization

status  symbol  something  which  shows  how  important  its  owner  is

strategic  based  on  a  plan  of  action 

strategic  planning      the  process  of  planning  the  future  work  of  a  company 

strategy  a  plan  of  future  action

subcontract     a  contract  between  the  main  contractor  for  a  whole  project  and  another  firm  who  will  do  part  of  the  work

subordinate  a  person  in  a  lower  position  in  an  organization

successor  a  person  who  takes  over  from  someone

SWOT  (Strengths,  Weaknesses,  Opportunities,  Threats) analysis  a  method  of  assessing  a  person,  company  or  product  by  considering  their  Strengths,  Weaknesses  and  external  factors  which  may  provide  Opportunities  or  Threats  to  their  development.    

tertiary  industry  an  industry  which  does  not  produce  raw  materials  or  manufacture  products  but  offers  a  service  such  as  banking,  retailing  or  accountancy 

think  tank  a  group  of  experts  who  advise  or  put  forward  plans 

top-down  approach  a  style  of  leadership  in  which  the  senior  management  makes  plans  and  decides  what  should  be  done  and  then  communicates  its  plans  and  decisions  to  employees  at  lower  levels  in  the  organization

total  quality  management  (TQM) a  management  style  which  demands  commitment  to  maintain  and  improve  quality  throughout  the  workforce  (with  control  of  systems,  quality,  inspection  of  working  practices,  etc.)    

total  systems  approach  a  way  of  organizing  a  large  company,  in  which  the  systems  in  each  section  are  all  seen  as  part  of  the  total  corporate  system 

trustee  a  person  who  has  charge  of  money  in  trust 

variable  costs  plural     production  costs  which  increase  with  the  quantity  of  the  product  made,  e.g.  wages  or  raw  materials

virtual  office  a  workplace  that  has  no  physical  location  but  is  created  when  a  number  of  employees  use  information  and  communications  technologies  to  do  their  work  and  collaborate  with  one  another, generally a  virtual  office  is  characterized  by  the  use  of  teleworkers,  telecentres,  mobile  workers,  hot-desking  and  hotelling)

vision  the  overall  aim  or  purpose  of  an  organization  that  all  its  business  activities  are  designed  to  help  it  achieve

work  in  progress  the  value  of  goods  being  manufactured  which  are  not  complete  at  the  end  of  an  accounting  period

zero-based  budgeting  the  planning  of  budgets  on  the  basis  that  no  funds  are  allocated  automatically,  and  that  every  piece  of  projected  expenditure  has  to  be  justified




Manpower Planning, Recruitment and Selection



absenteeism  rate:  the  percentage  of  the  workforce  which  is  away  from  work  with  no  good  excuse

absenteeism:  the  practice  of  staying  away  from  work  for  no  good  reason

affirmative  action:  the  practice  of  providing  opportunities  for  disadvantaged  groups  such  as  ethnic  minorities,  women  or  people  with  disabilities

Appraisal   Interview:  A discussion following a performance appraisal in which supervisor and employee discuss the employee’s rating and possible remedial actions.

background:  past  work  or  experience 

beginner:  a  person  who  is  starting  in  a  job

behavioral  interview:   a  type  of  interview  that  aims  to  find  out  how  applicants  have  behaved  in  the  past  when  faced  with  the  kind  of  situations  they  might  meet  in  the  job  they  are  being  interviewed  for

biodata  biographical  information  about  an  employee  and  their  employment  history 

candidate-order error: An error of judgment on the part of the interviewer due  to interviewing one or more very good or very bad candidates just before the interview in question.

career  a  job  which  you  are  trained  for  and  which  you  expect  to  do  all  your  life 

career  break   a  period  when  an  employee  leaves  a  career  job  for  several  years  to  undertake  another  activity  such  as  studying  for  a  degree  or  having  a  baby  and  then  returns  at  the  same  level 

character   the  general  nature  or  qualities  of  a  person,  which  make  that  person  different  from  others 

chargehand  a  senior  operator  in  a  group  of  workers  under  a  foreman  who  has  responsibility  for  seeing  that  day-to-day  problems  are  solved 

classified  advertisements/classified  ads  advertisements  listed  in  a  newspaper  under  special  headings  such  as  ‘property  for  sale’  or  ‘jobs  wanted 

closed  interview  an  interview  where  the  interviewer  asks  only  fixed  questions  with  ‘yes’  or  ‘no’  answers

colleague  a  person  who  does  the  same  type  of  work  as  another 

competency  the  ability  to  do  the  tasks  required  in  a  job   

computerized forecast: The determination of future staff needs by projecting a firm's sales, volume of production, and personnel required to maintain this volume of output, using computers and software packages.

conditions application form: The form that provides information on education, prior work record, and skills.

content validity: A test that is content--valid is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question.

contract  of  employment   a  contract  between  employer  and  an  employee  stating  all  the  conditions  of  work 

contractor  a  person  or  company  that  does  work  according  to  a  written  agreement

counterpart  a  person  who  has  a  similar  job  in  another  company

creativity  test  a  test  designed  to  assess  the  originality  or  imagination  which  someone  can  apply  to  solving  problems

creativity/creative  thinking  the  ability  to  use  the  imagination  to  produce  new  ideas  or  things

criterion validity: A type of validity based on showing that scores on the test (predictors) are related to job performance.

culture  shock  the  shock  when  a  person  moves  from  one  type  of  society  to  another  (as  for  emigrants  from  European  countries  to  the  USA)

curriculum  vitae  a  summary  of  a  person’s  work  experience  and  qualifications  sent  to  a  prospective  employer  by  someone  applying  for  a  job

decisiveness  the  ability  to  come  to  a  decision  quickly

decruiting  the  policy  of  replacing  permanent  employees  with  temporary  ones

Job Analysis: Standardized method for rating, classifying,   and comparing virtually every kind of job based on data, people, and things.

Diary/ Log: Daily listings made by workers of every activity in which they engage along with the time each activity takes.

Directive Interview: An interview following a set sequence of questions.

discrimination  the  practice  of  treating  people  in  different  ways  because  of  class,  religion,  race,  language,  color  or  sex

dismissal  the  removal  of  an  employee  from  a  job,  either  by  sacking  or  by  not  renewing  a  contract

downgrading  the  act  of  moving  an  employee  to  a  lower  grade  of  job

downsizing  the  process  of  reducing  the  size  of  something,  especially  reducing  the  number  of  people  employed  in  a  company  to  make  it  more  profitable

dress  code  a  policy  on  which  type  of  clothes  are  considered  suitable  for  a  specific  activity,  especially  the  clothes  worn  at  work

effective  date  of  termination  on  the  date  at  which  an  employee’s  employment  ends  (i.e.  the  date  after  notice,  on  which  they  leave  the  company)

emotional  intelligence  the  ability  to  understand  your  own  personal  feelings  and  those  of  other  people,  to  take  other  people’s  feelings  into  account  when  reaching  decisions  and  to  respond  to  people’s  feelings  in  a  restrained  and  thoughtful  way, Emotional  intelligence  can  greatly  improve  people’s  interpersonal  communication  and  people  skills.

empathy  the  ability  to  appreciate  the  feelings  of  others specially a  subordinate  in  a  particular  situation

employee  handbook   a  book  that  gives  employees  the  information  they  need  on  the  organization  that  they  work  for  and  the  job  that  they  do  (Employee  handbooks  typically  describe  terms  and  conditions  of  employment,  the  policies  and  procedures  of  the  organization  and  fringe  benefits.)

Employee  referral  program  a  policy  popular  in  the  US  that  encourages  employees,  usually  through  cash  incentives,  to  nominate  potential  candidates  for  various  jobs  as  part  of  the  recruiting  process

employee  retention  the  process  of  keeping  employees  on  the  staff,  and  not  losing  them  to  rival  firms

employment  law  the  law  as  referring  to  workers,  employers  and  their  rights

employment-at-will  a  term  in  common  law  that  a  contract  of  employment  with  no  specified  period  of  service  may  be  terminated  by  either  side  without  notice  or  reason

entry  level  job  a  job  for  which  no  previous  experience  is  needed

equal  opportunities  plural     the  practice  of  avoiding  discrimination  in  employment 

ethos  a  characteristic  way  of  working  and  thinking

executive  search  the  process  of  looking  for  new  managers  for  organizations,  usually  by  approaching  managers  in  their  existing  jobs  and  asking  them  if  they  want  to  work  for  different  companies  (a  more  polite  term  for  headhunting)

expatriate  a  person,  who  lives  and  works  in  a  country  which  is  not  their  own

Expectancy Chart: A graph showing the relationship between test scores and job performance for a large group of people.

experience  knowledge  or  skill  that  comes  from  having  had  to  deal  with  many  different  situations

expertise  specialist  knowledge  or  skill  in  a  particular  field

external  recruitment  the  recruitment  of  employees  from  outside  an  organization

face  validity  the  degree  to  which  a  test  seems  to  be  valid

functional   job   analysis: A method for classifying jobs similar to the Department of Labor job analysis but additionally taking into account the extent to which instructions, reasoning, judgment, and verbal facility are necessary for performing the job tasks.

functional  authority  the  authority  which  is  associated  with  a  job

genuine  occupational  qualifications  plural     a  situation  where  a  person  of  a  certain  sex  or  racial  background  is  needed  for  a  job,  and  this  can  be  stated  in  the  job  advertisement.

government  contractor  a  company  which  supplies  the  government  with  goods  by  contract

group  selection  a  method  of  recruitment  in  which  candidates  are  assessed  in  groups  rather  than  individually  (Group  selection  should  not  be  confused  with  a  panel  interview.)

guaranteed  employment  an  arrangement  that  protects  employees  in  situations  where  there  is  a  shortage  of  work,  by  guaranteeing  that  they  will  be  paid  a  minimum  wage  for  a  specified  number  of  days  or  hours  during  which  they  have  no  work  (also  called  guaranteed  week)

handover  the  passing  of  responsibilities  to  someone  else

hands-on  experience  the  direct  experience  of  a  system

headcount  the  total  number  of  employees  who  work  for  an  organization

headhunt  to  look  for  managers  and  offer  them  jobs  in  other  companies

headhunter  a  person  or  company  whose  job  is  to  find  suitable  top  managers  to  fill  jobs  in  companies

helpline  a  telephone  number  which  links  people  to  services  that  can  give  them  specialist  advice,  or  a  similar  service  offered  by  shops  to  their  customers.

hierarchy  an  organizational  structure  with  several  levels  of  responsibility  or  authority

high  achiever  a  person  who  achieves  more  than  they  expect

higher  education  education  at  university

hiring  the  act  of  employing  new  staff

honorary   not  paid  a  salary  for  the  work  done  for  an  organization

horizontal  job  enlargement  ,  the  process  of  expanding  a  job  to  include  new  activities,  skills  or  responsibilities,  but  still  at  the  same  level  in  the  organization

human  capital   the  employees  of  an  organization,  and  their  skills,  knowledge  and  experience,  considered  one  of  the  organization’s  assets

human  resource(s)  planning  (HRP) the  planning  of  the  future  needs  of  a  company  as  regards  employees,  arranging  for  interviews  for  candidates,  organizing  training,    

incapability  the  fact  of  being  incapable  of  working  properly  because  of  illness  or  incompetence

incompetence  the  fact  of  being  unable  to  do  a  job  well

indirect  labor  employees  who  are  not  directly  related  to  the  production  of  the  product

indirect  labor  costs      the  cost  of  paying  employees  not  directly  involved  in  making  a  product  such  as  cleaners  or  canteen  staff. 

inefficiency  the  fact  of  not  being  able  to  work  quickly  and  correctly

ineligibility  the  fact  of  being  ineligible

innovation  the  development  of  new  products  or  new  ways  of  selling

intelligence  quotient  a  measure  of  mental  ability  according  to  a  comparative  scale

intelligence  test  a  test  to  assess  someone’s  intellectual  ability

interim  manager  an  experienced  manager  who  is  brought  in  to  work  temporarily  for  an  organization,  usually  to  fill  a  vacancy  or  to  coordinate  a  particular  project

internal  recruitment  the  process  of  filling  vacancies  by  recruiting  staff  from  inside  the  company

interview  a  meeting  in  order  to  talk  to  a  person  who  is  applying  for  a  job  to  find  out  whether  they  are  suitable  for  it 

item  validity  the  extent  to  which  a  test  item  measures  what  it  is  supposed  to  test

job  description  a  description  of  what  a  job  consists  of  and  what  skills  are  needed  for  it

job  enrichment  the  process  of  making  a  job  more  satisfying  for  the  person  doing  it

job  factor  an  aspect  of  a  job  which  can  be  examined  and  to  which  scores  can  be  given  in  job  evaluation

job  loading  the  act  of  assigning  a  job  a  greater  degree  of  responsibility

job  offer  ,  offer  of  a  job     a  letter  from  an  employer,  offering  a  job

job  opening  a  job  which  is  empty  and  needs  filling 

job  rotation  the  moving  of  workers  from  one  job  to  another  systematically

job  simulation  exercise  a  test  where  candidates  are  put  through  a  simulation  of  the  real  job

job analysis: The procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.

Job Description: A list of a job’s duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities-one product of a job analysis.

Job Posting: Posting notices of job openings on company bulletin boards is an effective recruiting method.

Job Related Interview: A series of job-related questions which focuses on relevant past job-related behaviors.

Job Specification: A list of a job's "human requirements," that is, the requisite education, skills, personality, and so on-another product of a job analysis.

juvenile  labor  children  and  other  young  people  employed  under  special  conditions

know-how  knowledge  or  skill  in  a  particular  field

laborer  a  person  who  does  heavy  work

lay  off  to  dismiss  employees  for  a  time  (until  more  work  is  available)

leader  a  person  who  manages  or  directs  others

leadership  a  quality  that  enables  a  person  to  manage  or  administer  others

letter  of  appointment  a  letter  in  which  someone  is  appointed  to  a  job

line  authority  the  power  to  direct  others  and  make  decisions  regarding  the  operations  of  the  organization

line  manager  a  manager  responsible  to  a  superior,  but  with  authority  to  give  orders  to  other  employees

local  labor  workers  who  are  recruited  near  a  factory,  and  are  not  brought  there  from  a  distance

lock  out , to  lock  out  workers  to  shut  the  factory  door  so  that  workers  cannot  get  in  and  so  force  them  not  to  work  until  the  conditions  imposed  by  the  management  are  met

long-service  leave  a  period  of  paid  leave  given  by  some  employers  to  staff  who  have  completed  several  years  of  service

lost  time  the  time  during  which  an  employee  does  not  work,  through  no  fault  of  their  own

management  ratio  the  number  of  managers  for  every  hundred  employees  in  an  organization

Management Assessment: A situation in which management candidates are asked to make Centers decisions in hypothetical situations and are scored on their performance. It usually also involves testing and the use of management games.

manager  the  head  of  a  department  in  a  company

man-hour  work  done  by  one  employee  in  one  hour

manpower  the  number  of  employees  in  an  organization,  industry  or  country   

manpower  forecasting  the  process  of  calculating  how  many  employees  will  be  needed  in  the  future,  and  how  many  will  actually  be  available

manpower  planning  the  process  of  planning  to  obtain  the  right  number  of  employees  in  each  job

manpower  shortage  a  lack  of  employees

manual  laborer  a  person  who  does  heavy  work  with  their  hands

middle  manager  a  manager  of  a  department  in  a  company,  answerable  to  a  senior  manager  or  director

migrant  a  person  who  moves  from  one  place  or  country  to  another,  usually  to  work

Myers-Briggs  type  indicator  a  test  designed  to  indicate  what  type  of  personality  a  person  has  on  the  basis  of  the  preferences  they  show  with  regard  to  four  paired  opposites:  extraversion  and  introversion;  sensing  and  intuition;  thinking  and  feeling;  judging  and  perceiving

nepotism  the  practice  of  giving  preferential  treatment  to  someone  who  is  a  relative  or  friend  (especially  giving  a  job  to  a  member  of  the  family  who  is  less  well  qualified  than  other  candidates)

neurolinguistic  programming  a  theory  of  behavior  and  communication  based  on  how  people  avoid  change  and  how  to  help  them  to  change

next  of  kin  the  nearest  member  of  the  family  (to  be  contacted  if  an  employee  dies  or  is  involved  in  an  accident)

Nondirective Interview: An unstructured conversational-style interview. The interviewer pursues points of interest as they come up in response to questions.

non-disclosure  agreement  a  legally  enforceable  agreement  that  stops  present  or  past  employees  from  revealing  commercially  sensitive  information  belonging  to  their  employer  to  anybody  else

non-resident  a  person  who  is  not  considered  a  resident  of  a  country  for  tax  purposes

Occupational Market: The Bureau of Labor Statistics of the (U.S.) Department of Labor publishes projections of labor supply and demand for various occupations, as do other agencies.

open-ended  interview  an  interview  where  the  candidate  is  asked  general  questions,  which  make  them  give  reasons  for  actions,  show  their  feelings,  etc.

outplacement  a  situation  where  several  employees  are  dealt  with  together  in  being  given  help  to  find  other  jobs  after  being  made  redundant

outsourcing  the  practice  of  obtaining  services  from  other  companies,  rather  than  employing  full-time  members  of  staff  to  provide  them

overqualified  having  too  many  skills  for  a  job 

Panel Interview: An interview in which a group of interviewers questions the applicant.

peer  a  person  who  is  the  same  age  or  at  the  same  level  as  someone  else

people  skills  the  techniques  used  in  forming  relationships  and  dealing  with  other  people

person  specification  a  form  of  job  description  which  gives  the  ideal  personal  qualities  needed  for  the  job  and  a  description  of  the  ideal  candidate  for  the  job

personal  inventory  a  list  of  strengths  and  weaknesses  in  an  employee’s  personality

personality  test  a  test  to  assess  a  person’s  character

Personnel Replacement Charts: Company records showing present performance and promote-ability of inside candidates for the most important positions.

Position Analysis: A questionnaire used to collect quantifiable data concerning the Questionnaire (PAQ) duties and responsibilities of various jobs.

Position Replacement Card: A card prepared for each position in a company to show possible replacement candidates and their qualifications.

predictive  validity  the  process  of  assessing  the  validity  of  selection  tests,  by  comparing  the  employee’s  performance  in  tests  with  their  subsequent  job  performance

pre-employment  screening  health  screening  that  takes  place  after  a  person  has  been  appointed  to  a  job  but  before  they  start  work

prejudice  bias  or  unjust  feelings  against  someone

proactive  taking  the  initiative  in  doing  something  (as  opposed  to  reacting  to  events)

probation  a  period  when  a  new  employee  is  being  tested  before  getting  a  permanent  job

probationary  period  a  period  during  which  a  new  employee  is  on  probation

problem-solving  the  task  of  dealing  with  problems  that  occur  within  an  organization  and  the  methods  that  managers  use  to  solve  them  (The  most  widely  used  method  of  problem-solving  proceeds  through  the  following  stages:  recognizing  that  a  problem  exists  and  defining  it;  generating  a  range  of  solutions;  evaluating  the  possible  solutions  and  choosing  the  best  one;  implementing  the  solution  and  evaluating  its  effectiveness  in  solving  the  problem.)

proficiency  skill  in  doing  something  at  more  than  a  basic  level

projective  test  a  test  of  personality,  where  a  candidate  is  asked  to  describe  what  they  see  in  certain  shapes

proven  experience  experience  showing  that  someone  has  been  successful

psychometrics  a  way  of  measuring  ability  and  personality  where  the  result  is  shown  as  a  number  on  a  scale

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.

racial  discrimination  the  practice  of  treating  a  person  differently  (usually  worse)  because  of  their  race

racial  prejudice  feelings  against  someone  because  of  their  race

racism  the  belief  in  racist  ideas  or  actions  based  on  racist  ideas

random  sampling  the  choosing  of  samples  for  testing  without  any  special  selection

Ratio Analysis: A forecasting technique for determining future staff needs by using ratios between sales volume and number of employees needed.

recruitment  the  process  of  searching  for  and  appointing  new  staff  to  join  a  company

recruitment  ratio  a  ratio  of  the  number  of  people  appointed  to  jobs  to  the  number  of  candidates  applying

redundancy   the  dismissal  of  a  person  whose  job  no  longer  needs  to  be  done 

redundant  staff  staff  who  have  lost  their  jobs  because  they  are  not  needed  any  more

reference  a  person  such  as  a  former  employer  or  teacher  who  can  give  a  report  on  someone’s  character,  ability  or  job  performance 

Reliability: The characteristic which refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests.

reliable  test  a  test  which  always  gives  correct  results

reorganization  the  act  of  organizing  something  in  a  new  way 

replacement  an employee who  replaces  other employee 

requisition  form  a  form  sent  to  the  human  resources  department  from  a  department  in  an  organization  asking  for  a  new  employee  to  be  found  to  fill  a  vacancy

residence  permit  an  official  document  allowing  a  foreigner  to  live  in  a  country

resident  a  person  or  company  considered  to  be  living  or  operating  in  a  country  for  official  or  tax  purposes

resignation  the  act  of  giving  up  a  job 

resume     a  summary  of  a  person’s  work  experience  and  qualifications  sent  to  a  prospective  employer  by  someone  applying  for  a  job  many times used as a synonym of curriculum  vitae, though meanings are slightly different

retention  the  process  of  keeping  the  loyalty  of  existing  employees  and  persuading  them  not  to  work  for  another  company

sack  to  be  dismissed  from  a  job 

Scatter Plot: A graphical method used to help identify the relationship between two variables.

screening  the  examining  of  candidates  to  see  if  they  are  suitable

seasonal  worker  a  worker  who  is  employed  for  a  few  months  during  the  high  season

secondment  the  act  or  period  of  being  seconded  to  another  job  for  a  period

selection  the  process  of  choosing  someone  for  a  job

self-actualization  the  process  of  developing  your  skills  and  talents  to  the  fullest  possible  extent  or  to  the  point  where  they  are  most  beneficial  to  you

self-appraisal  a  person’s  own  assessment  of  their  capabilities  and  character

self-confidence  the  quality  of  feeling  confident  in  your  own  ability

self-employed  working  for  yourself  or  not  on  the  payroll  of  a  company 

semi-skilled  having  had  or  involving  some  training

senior  management   the  main  directors  of  a  company

separation  the  act  of  leaving  a  job  (resigning,  retiring  or  being  fired  or  made  redundant)

seven-point  plan  a  list  of  items  used  in  assessing  the  potential  of  job  candidates  :  The  seven  points  are:  physical  appearance,  educational  qualifications,  general  intelligence  level,  special  skills  (not  necessarily  connected  to  their  current  employment),  outside  interests,  mental  and  emotional  disposition,  personal  and  family  circumstances.

sexual  discrimination  ,  sex  discrimination  the  practice  of  treating  men  and  women  in  different  ways  (usually  favoring  men) 

shortlist  a  list  of  candidates  who  can  be  asked  to  come  for  a  test  or  interview  (drawn  up  after  all  applications  have  been  examined  and  the  most  obviously  unsuitable  candidates  have  been  rejected)

single  status  an  arrangement  where  managers  and  ordinary  staff  all  enjoy  the  same  conditions  of  work,  pay  structures,  recreational  facilities,  etc.,  with  no  extra  perks  for  anyone

Situational Interview: A series of job-related questions which focuses on how the candidate would behave in a given situation.

situations  vacant  a  list  in  a  newspaper  of  jobs  which  are  available

situations  wanted  a  section  of  a  newspaper  where  workers  advertise  for  jobs  or  offer  services

skill  an  ability  to  do  something  because  you  have  been  trained

skilled  having  learnt  certain  skills

skilled  workers  ,  skilled  labor   workers  who  have  special  skills  or  who  have  had  long  training

skills  shortage  a  lack  of  employees  with  certain  skills

staff  people  who  work  for  a  company  or  organization

staff  turnover  changes  in  staff,  when  some  leave  and  others  join

staffing  the  provision  of  staff  for  a  company

Stress Interview: An interview in which the applicant is made uncomfortable by a series of often rude questions. This technique helps identify hypersensitive applicants and those with low or high stress tolerance.

structured  interview  an  interview  using  preset  questions  and  following  a  fixed  pattern.

Structured  Sequential Interview: An interview in which the applicant is interviewed sequentially by several supervisors and each rates the applicant on a standard form.

subcontract     a  contract  between  the  main  contractor  for  a  whole  project  and  another  firm  who  will  do  part  of  the  work

subjective  test  a  test  where  the  examiner  evaluates  the  answers  according  to  their  own  judgment  (as  opposed  to  an  objective  test) 

subordinate  a  person  in  a  lower  position  in  an  organization

successor  a  person  who  takes  over  from  someone

takeover  to  start  to  do  something  in  place  of  someone  else

talent  people  with  exceptional  abilities,  especially  the  employees  that  the  company  values  most

task  analysis  a  method  used  to  identify  and  examine  the  tasks  performed  by  people  when  they  are  working  with  computerized  or  non-computerized  systems  (the  purpose  of  task  analysis  is  to  find  the  most  efficient  way  of  integrating  the  human  element  into  automated  systems)

team  a  group  of  people  who  work  together  and  co-operate  to  share  work  and  responsibility

team  player  somebody  who  works  well  as  a  member  of  a  team

team  spirit  the  general  mood  of  a  team,  expressed  as  loyalty  to  the  team  and  with  motivation  coming  from  working  in  a  team

teamwork  a  group  effort  applied  to  work

Test Validity: The accuracy with which a test, interview, and so on measures what it purports to measure or fulfills the function it was designed to fill.

testimonial  a  written  report  about  someone’s  character  or  ability

testing  the  act  of  examining  a  person  to  assess  their  ability  to  do  a  job

Trend Analysis: Study of a firm's past employment needs over a period of years to predict future needs.

understaffed  with  not  enough  staff  to  do  the  company’s  work

unemployment  the  state  of  not  having  any  work, a  situation  where  a  person  is  willing  to  work  but  cannot  find  a  job  as well as it is referred to the  number  of  people  in  a  country  or  region  who  are  willing  to  work  but  cannot  find  jobs

unskilled  worker  a  worker  who  has  had  no  particular  training

unstructured  interview  an  interview  which  is  not  based  on  a  series  of  fixed  questions  and  which  encourages  open  discussion

untrained  referring  to  a  person  who  has  had  no 

vacancy  a  job  which  is  to  be  filled  _

vertical  job  enrichment  the  expansion  of  a  job  to  include  new  activities  or  responsibilities

vocational  referring  to  a  choice  of  career  or  occupation  which  a  person  wishes  to  follow

voluntary  redundancy  a  situation  where  the  employee  asks  to  be  made  redundant,  usually  in  return  for  a  large  payment

voluntary  work  unpaid  work  (such  as  work  for  a  charity  or  club)

volunteer  a  person  who  offers  to  do  something 

walk-in  a  person  who  approaches  an  organization  for  a  job,  without  knowing  if  any  jobs  are  available

white-collar  referring  to  office  workers 

work  in  progress  the  value  of  goods  being  manufactured  which  are  not  complete  at  the  end  of  an  accounting  period 

work  permit  an  official  document  which  allows  someone  who  is  not  a  citizen  to  work  in  a  country

Work Samples: Actual job tasks used in testing applicants' performance.



Organization Development & Performance Appraisal


360  degree  appraisal  an  assessment  of  the  performance  of  a  person  working  for  an  organization,  to  which  colleagues  ranking  above,  below  and  of  equal  rank  contribute

Action Learning: A training technique by which management  trainees are allowed to work full time analyzing and solving problems in other departments.

Alternation  Ranking Method: Ranking employees from best to worst on a particular trait.

Appeals  procedure:     the  way  in  which  an  employee  can  appeal  against  a  decision

Appraisal  Interviews:  An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.

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 superior.

Behaviorally   Anchored Scale ( BARS): An appraisal method that aims at  combining  the benefits of Rating  narrative and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.

Bias: The tendency to allow individual differences such as age, race, and sex to affect the appraisal rates these employees receive.

bully  a  person  who  is  in  a  powerful  position  and  continually  harasses  others

Business Process Reengineering ( BPR): The redesign of business processes to achieve improvements in such measures of performance as cost, quality, service, and speed.

career  development  the  planning  of  an  employee’s  future  career  in  an  organization 

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, avoiding the high and the low ratings.

coaching  a  face-to-face  instruction  where  a  subordinate  is  shown  how  to  change  their  behavior

Confrontation   Meetings:  A method for clarifying and bringing into the open inter-group misconceptions and problems so that they can be resolved.

continuing  education  education which  continues  after  school  and  university  or  college

Controlled Experimentation: Formal  methods for testing the effectiveness of a training program, preferably with before-and-after tests and a control group.

counseling  the  act  of  giving  professional  advice  to  others  on  personal  matters

Critical Incident Method: Keeping a record of uncommonly good or undesirable examples of an  employee's  work-related  behavior  and  reviewing  it  with the employee at predetermined times.

Cross- Functional Team: A quality improvement team formed to address problems that cut across organizational boundaries.

Cultural Change: A change in a company’s shared values and aims.

disciplinary  action  an  action  taken  to  control  or  punish  bad  behaviour  by  employees

disciplinary  interview  an  interview  between  a  manager  and  an  employee  to  discuss  a  breach  of  discipline  (the  worker  may  be  accompanied  by  a  union  representative)

efficiency  the  ability  to  work  well  or  to  produce  the  right  result  or  the  right  work  quickly

employee  assistance  program  a  program  set  up  to  help  employees  with  personal  problems

employee  development  additional  training  dedicated  to  increasing  the  skills,  knowledge  and  experience  of  employees  in  order  to  improve  their  performance

Employee Orientation: A procedure for providing new employees with basic background information about the firm.

essay  method  an  evaluation  method  in  performance  appraisal  where  the  evaluator  writes  a  short  description  of  the  employee’s  performance

evaluation  of  training  a  continuous  process  of  analysis  that  evaluates  the  training  carried  out  by  an  organization,  defining  its  aims,  assessing  the  need  for  it,  finding  out  how  people  react  to  it  and measuring  its  effects  of  the  organization’s  financial  performance

expectancy  theory  a  theory  that  employees  will  only  be  motivated  to  produce  if  they  expect  that  higher  performance  will  lead  to  greater  personal  satisfaction

eye  service  the  practice  of  working  only  when  a  supervisor  is  present  and  able  to  see  you 

Flextime: A plan whereby employees build their workday around a core of midday hours.

Flexyears: A work arrangement under which employees can choose (at six month intervals) the number of hours they want to work each month over the next year.

Forced Distribution Method: Similar to grading on a curve; predetermined percentages of ratees are placed in various categories.

Four- Day Workweek: An arrangement that allows employees to work four ten-hour days instead of the more usual five eight-hour days.

Functional Team: A quality improvement team composed of volunteers who typically work together as natural work units.

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 performance for each trait.

gross  misconduct  very  bad  behavior  by  an  employer,  which  is  a  fair  reason  for  dismissal  (such  as  drunkenness  or  theft)

gross  negligence  the  act  of  showing  very  serious  neglect  of  duty  towards  other  people harassment  procedure  written  and  agreed  rules  as  to  how  cases  of  harassment  should  be  dealt  with  in  a  company

Halo Effect: In performance appraisal, the problem that occurs when a supervisor’s rating of a subordinate on one trait  biases the rating of that person on other traits.

induction  training  a  program  intended  to  help  a  person  entering  an  organization  or  starting  a  new  job

informal  warning  a  spoken  warning  to  an  employee,  which  is  not  recorded  and  cannot  be  taken  into  account  if  the  worker  is  disciplined  later.

in-house  training  training  given  to  employees  at  their  place  of  work

in-service  training  the  training  of  staff  while  they  are  employed  by  an  organization

insubordination  the  act  of  refusing  to  do  what  a  person  in  authority  tells  you  to  do

interactive  learning  learning  through  a  computer  teaching  package,  where  the  student  is  helped  by  the  course  and  is  taught  by  making  responses  to  the  course

inverted  appraisal  an  appraisal  where  a  subordinate  appraises  their  manager

job  performance  the  degree  to  which  a  job  is  done  well  or  badly

Job  satisfaction  a  good  feeling  of  happiness  and  contentment 

Job  violation  the  act  of  breaking  a  rule 

Job Instruction Training (JIT): Listing of each job’s basic tasks, along with key points in order to provide step-by-step training for employees.

Job Rotation: A management training technique that involves moving a trainee from department to department to broaden his or her experience and identify strong and weak points.

Job Sharing: A concept that allows two to more people to share a single full-time job.

Lead Team: A quality improvement team headed by a vice president or other manager that serves as a steering committee for all the teams that operate in its area.

learning  curve  a  diagram  or  graph  that  represents  the  way  in  which  people  gain  knowledge  or  experience  over  time  (A  steep  learning  curve  represents  a  situation  where  people  learn  a  great  deal  in  a  short  time;  a  shallow  curve  represents  a  slower  learning  process.  The  curve  eventually  levels  out,  representing  the  time  when  the  knowledge  gained  is  being  consolidated.) 

learning  style  the  way  in  which  someone  approaches  the  task  of  acquiring  knowledge  and  skills  (There  are  commonly  thought  to  be  four  main  types  of  learner:  the  activist,  who  likes  to  get  involved  in  new  experiences  and  enjoys  change;  the  theorist,  who  likes  to  question  established  assumptions  and  methods  and  learns  best  when  there  is  time  to  explore  links  between  ideas  and  situations;  the  pragmatist,  who  learns  best  when  there  is  a  link  between  the  subject  matter  and  the  job  in  hand  and  they  can  try  out  in  practice  what  they  have  learned;  and  the  reflector,  who  likes  to  take  time  and  think  things  through,  and  who  learns  best  from  activities  where  they  can  observe  how  tasks  are  carried  out.)

leniency  the  quality  of  not  being  strict  in  dealing  with  subordinates

leniency  bias  an  unjustifiably  high  rating  of  an  employee’s  job  performance

Malcolm Baldridge Award: An award created by the U.S. Department of Commerce to recognize quality efforts of U.S. companies.

Management By Objectives (MBO): Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.

Management Development: Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills.

Management Game: A development technique in which teams of managers compete with one another by making computerized decisions regarding realistic but simulated companies.

managerial  grid  a  type  of  management  training  in  which  trainees  attempt  to  solve  a  number  of  problems  in  groups,  and  thereby  discover  their  individual  strengths  and  weaknesses

mentee  a  less  experienced  employee  who  is  offered  special  guidance  and  support  by  a  respected  and  trusted  person  with  more  experience

 mentor  a  person  who  is  respected  and  trusted  by  a  less  experienced  employee  and  offers  special  guidance  and  support  to  them

mentoring  a  form  of  training  or  employee  development  in  which  a  trusted  and  respected  person  with  a  lot  experience—the  mentor—offers  special  guidance,  encouragement  and  support  to  a  less  experienced  employee

misconduct  an  illegal  action  by  an  employee,  or  an  action  which  can  harm  someone,  e.g.  disobeying  instructions

motivate  to  encourage  someone  to  do  something,  especially  to  work  or  to  sell

needs  assessment /  assessment  of  needs  an  analysis  of  an  organization’s  manpower  requirements  which  can  form  the  basis  of  training  plans

negligence  the  act  of  not  doing  a  job  properly  when  one  is  capable  of  doing  it

non-conformance  the  act  of  not  conforming

observational  method  a  way  of  evaluating  the  performance  of  employees,  by  watching  them  work  and  observing  their  conduct  with  others

off-the-job  training  training  given  to  employees  away  from  their  place  of  work  (such  as  at  a  college  or  school)

on-the-job  training  training  given  to  employees  at  their  place  of  work

On-The-Job Training (OJT): Training a person to learn a job while working at it.

oral  warning  the  first  stage  of  disciplinary  measures,  where  an  employee  is  told  by  the  supervisor  that  their  work  is  unsatisfactory  and  must  be  improved

organizational  development  a  form  of  management  training  designed  to  affect  the  whole  organization  as  well  as  the  individual  employees

organizational  learning  activities  within  an  organization  that  are  aimed  at  the  further  training  and  personal  development  of  employees  and  are  intended  to  create  a  willing  acceptance  of  changes  and  improvements  and  high  levels  of  enthusiasm,  energy,  creativity  and  innovation  among  them  (The  concept  of  organizational  learning  was  further  developed  as  the  learning  organization.)

Organizational Development  Interventions: HR-based techniques aimed at changing employees’ attitudes, values, and behavior.

Organizational Development (OD): A method aimed at changing attitudes, values, and beliefs of employees so that employees can improve the organizations.

orientation  the  introduction  of  new  employees  into  an  organization

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.

peer  group  appraisal  an  appraisal  of  an  employee  by  their  peer  group 

pay  scale  a  table  that  sets  out  the  range  of  pay  offered  for  each  grade  of  job  in  an  organization

penalty  a  punishment,  often  a  fine,  which  is  imposed  if  something  is  not  done  or  is  done  incorrectly  or  illegally

performance  the  way  in  which  someone  or  something  acts

performance  indicator  a  figure  or  measurement  that  acts  as  a  guide  to  how  well  an  organization  is  performing,  as  a  whole  or  in  some  aspect  of  its  activities,  and  what  its  strengths  and  weaknesses  are  (Performance  indicators  can  relate,  for  example,  to  the  quality  or  quantity  of  its  output  or  to  the  turnover  rate  amongst  its  staff.)

performance  of  staff  against  objectives  how  staff  have  worked,  measured  against  the  objectives  set

Performance Analysis: Careful study of performance to identify a deficiency and then correct it with new equipment, a new employee, a training program, or some other adjustment.

performance-based  assessment  an  assessment  of  an  employee’s  knowledge  and  skills  as  shown  in  their  work.

points  system  a  system  whereby  points  are  given  to  items  in  order  to  evaluate  them

preventive  measure  an  action  taken  to  prevent  something  from  taking  place

professional  body  an  organization  which  trains,  validates  and  organizes  examinations  for  its  members

Programmed Learning: A systematic method for teaching job skills involving presenting questions or facts, allowing the person to respond, and giving the learner immediate feedback on the accuracy of his or her answers

punctuality  the  tendency  to  arrive  at  a  place  at  the  right  time

punitive  measure  a  measure  to  punish  Someone

raise  an  increase  in  salary

reprimand  official  criticism  given  to  an  employee

Role Playing: A training technique in which trainees act out  the parts of people in a realistic management situation.

Self- Directed Team: A work team that uses consensus decision making to choose its own team members, solve job-related problems, design its own jobs, and schedule its own break time.

Sensitivity Training:  A method for increasing employees’ insights into their own Behavior by candid discussions in groups led by special trainers.

simulation  an  imitation  of  a  real-life  situation  for  training  purposes

skills  mapping  a  list  of  all  the  skills,  qualifications,  etc.,  of  each  member  of  staff,  so  that  they  can  be  redeployed  rather  than  be  made  redundant  if  their  job  ceases  to  exist

standard  performance  the  average  output  which  is  achieved  by  an  experienced  employee

Strategic Change: A change in a company’s strategy, mission and vision.

Strictness / Leniency Bias: The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low.

Structural Change: The reorganizing-redesigning of an organization’s departmentalization, coordination, span of control, reporting relationships, or centralization of decision making.

substandard  not  of  the  necessary  quality  or  quantity  to  meet  a  standard

success  an  act  of  doing  something  well

successful  having  got  the  desired  result

Succession Planning: A process through which senior-level openings are planned for and eventually filled.

Survey Research: A Method That involves Surveying Employees’ Attitudes And providing feedback to the work groups as a basis for problem analysis and action planning.

suspension  to  stop  someone  working  for  a  time 

tardiness  the  fact  of  being  late  or  unpunctual 

Task Analysis: A detailed study of a job to identify the skills required so that an appropriate training program may be instituted.

Team Building:  Improving the effectiveness of teams such as corporate officers and division directors through use of consultants, interviews, and team-building meetings.

Technological Change: Modifications to the work methods an organization uses to accomplish its tasks.

Telecommuting: A work arrangement in which employees work  at  remote locations, usually at home, using video displays, computers, and other telecommunications equipment to carry out their responsibilities. More commonly known as Work from Home (WFH) after Corona crisis.

termination  interview  a  meeting  between  a  management  representative  and  an  employee  who  is  to  be  dismissed,  usually  explaining  the  reasons  for  the  dismissal,  stating  whether  a  notice  period  must  be  worked  and,  especially  in  the  case  of  redundancy,  giving  details  of  any  assistance  the  employee  can  expect  from  the  employer

Total Quality Management (TQM): A   type   of  program  aimed at maximizing customer satisfaction through continuous improvements.

trainee  a  person  who  is  learning  how  to  do  something 

trainee  manager  an  employee  being  trained  to  be  a  manager

trainer  a  person  who  trains  staff

training  needs  the  amount  or  type  of  training  that  needs  to  be  given  to  the  employees  of  an  organization  in  order  to  make  up  for  a  shortage  of  skills  or  abilities  that  is  preventing  the  organization  from  fulfilling  its  aims  and  operating  effectively

training  needs  analysis  (TNA) analysis  designed  to  identify  the  training  needs  of  a  department  or  organization,  or  of  particular  employees.

Training:  The process of teaching new employees the basic skills they need to perform their jobs.

Unclear Performance Standards: An appraisal scale that is too open to interpretation; instead, include descriptive phrases that define each trait and what is meant by standards like "good" or "unsatisfactory."

underachiever  a  person  who  achieves  less  than  they  are  capable  of

value  added  evaluation  a  process  of  calculating  the  worth  of  a  training  program  by  measuring  the  difference  between  the  competence  or  skills  of  trainees  at  the  beginning  and  the  end  of  the  program

verbal  warning  the  first  stage  of  disciplinary  measures,  where  an  employee  is  told  by  the  supervisor  or  manager  that  their  work  is  unsatisfactory  and  must  be  improved

Vestibule  or simulated Learning: Training employees on special off-the-job equipment, as in airplane pilot training, whereby training costs and hazards can be reduced.

vocational  training       training  for  a  particular profession

written  warning  a  written  message  to  an  employee,  advising about disciplinary course of actions like further  punishment  or  dismissal  if  performance  or  behavior  is  not  improved 



Managing Career and Fair Treatment


Bumping/ Layoff: Detailed procedures that determine who will be laid off if no work is available; generally allows employees to use their seniority to remain on the job.

Career  Planning and Development: The deliberate process through which a person becomes aware of personal career-related attributes and the lifelong series of stages that contribute to his or her career fulfillment.

Discipline: A procedure that corrects or punishes a subordinate because a rule of procedure has been violated.

Dismissal: Involuntary termination of an employee’s employment with  the firm.

Downsizing: Refers to the process of reducing, usually dramatically, the number of people employed by the firm.

favoritism  the  practice  of  treating  one  subordinate  better  than  the  others

grievance   a  complaint  made  by  an  employee  or  trade  union  to  the  management

grievance  procedure  a  way  of  presenting  and  settling  complaints  from  a  trade  union  to  the  management

hostile  work  environment  working  surroundings  which  are  unfriendly

Insubordination: Willful disregard or disobedience of the boss’s authority or legitimate orders; criticizing the boss in public.

Johari  window  a  technique  used  to  analyze  how  someone  gives  and  receives  information  and  how  interpersonal  communication  works  (The  Johari  window  is  usually  represented  by  a  square  divided  into  four  sections  by  a  cross – 1. Open Self, 2. Blind Self, 3. Hidden Self, and 4. Mysterious Self,  each  section  representing  a  type  of  communication  in  which  a  person  has  differing  degrees  of  awareness  of  the  impact  they  are  making  on  the  other  person  and  of  the  impact  the  other  person  is  making  on  them)     

Layoff: A situation in which there is a temporary shortage of work and employees are told there is no work for them  but  that management intends to recall them when work is again available.

memo  a  short  message  sent  from  one  person  to  another  in  the  same  organization

Opinion  Surveys: Communication devices that use questionnaires to regularly ask employees their opinions about the company, management, and work life.

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.

Plant Closing Law: The Worker Adjustment and Retraining Notification Act, which requires notifying employees in the event an employer decides to close its facility.

Preretirement Counseling: Counseling provided to employees who are about to retire, which covers matters such as benefits advice, second careers, and so on.

Reality Shock: Results of a period that may occur at the initial career entry when the new employee’s high job expectations confront the reality of a boring, unchallenging job.

Retirement: The point at which a person gives up one's work, usually between the ages of 60 to 65, but increasingly earlier today due to firms’ early retirement incentive plans.

Rings of Defense: An alternative layoff plan in which temporary supplemental employees are hired with the understanding that they may be laid off at any time.

sexual  harassment  the  practice  of  making  unpleasant  sexual  gestures,  comments  or  approaches  to  someone 

Speak  Up! Programs: Communications programs that allow employees to register Questions, concerns, and complaints about work-related matters.

suggestion  box   a  place  in  a  company  where  employees  can  put  forward  their  ideas  for  making  the  company  more  efficient  and  profitable

Termination  At  Will: The idea, based in law, that  the employment  relationship  can  be terminated  at  will by either  the employer or the employee for any reason.

Termination Interview: The interview in which an employee is informed of the fact that he or she has been dismissed.

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 be updated on important matter regarding the firm.

Voluntary Reduction in Pay Plan: An alternative to layoffs in which all employees agree to reductions in pay to keep everyone working.

Voluntary Time Off: An alternative to layoffs in which some employees agree to take time off to reduce the employer’s payroll and avoid the need for a layoff.

workplace  bullying  persistent  intimidation  or  harassment  at  work  which  demoralizes  and  humiliates  a  person  or  group

Wrongful  Discharge: An employee dismissal that does not comply with the law or does not comply with the contractual arrangement stated or implied by the firm via its employment application forms, employee manuals, or other promises.



Compensation Management


Annual  Bonus: Plans that are designed to motivate short-term performance of managers and are tied to company profitability.

Base  pay:  pay  for  a  job  which  does  not  include  extras  such  as  overtime  pay  or  bonuses

Benchmark Job: A job that  is used to anchor  the employer’s  pay scale and around which other jobs are arranged in order of relative worth.

Benefits: Indirect financial payments given to employees. They may include health and life insurance, vacation, pension, education plans, and discounts on company products, for instance.

breach  of  contract  the  failure  to  do  something  which  has  been  agreed  in  a  contract

broad banding   the  reorganization  of  the  ranges  of  pay  that  an  organization  offers  for  various  types  of  jobs,  so  that  its  pay  scale  has  fewer,  but  wider  bands

Capital Accumulation Programs: Long-term incentives most often reserved for senior executives. Six popular plans include stock options, stock appreciation rights, performance achievement plans, restricted stock plans, phantom stock plans, and book value plans.

casual  leave  paid  time  off  from  work  given  to  an  employee  to  deal  with  personal  affairs

Civil Rights Act (US): This law makes it illegal to discriminate in employment  because of race, color, religion, sex, or national origin.

Classes: Dividing jobs into classes based on a set of rules for each class, such as amount of independent judgment, skill, physical effort, and so forth, required for each class of jobs. Classes usually contain similar jobs-- such as all secretaries.

Classification Method (Or Grading): A method for categorizing jobs into groups.

commission   money  paid  to  a  salesperson  or  agent,  usually  a  percentage  of  the  sales  made

Companies  Act  an  Act  of  Parliament  which  regulates  the  workings  of  companies,  stating  the  legal  limits  within  which  companies  may  do  their  business

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.

compassionate  leave   time  off  work  granted  to  an  employee  to  deal  with  personal  or  family  problems

Compensable Factor: A fundamental,  compensable  element  of  a  job,  such  as  skills,  effort, responsibility, and working conditions.

compliance  agreement  to  do  what  is  ordered

cost  of  living  money  which  has  to  be  paid  for  basic  items  such  as  food,  heating  or  rent

cost-of-living  allowance  an  addition  to  normal  salary  to  cover  increases  in  the  cost  of  living, the  American  equivalent  is  COLA

daily  rate  money  paid  for  one  day’s  work

Davis- Bacon Act (US): A law passed in 1931 that sets wage rates for laborers employed by contractors working for the federal government.

Deferred  Profit-Sharing Plan: A plan in which a certain amount of profits is credited to each employee's account, payable at retirement, termination, or death.

Defined  Benefit Pension Plan: A plan that contains a formula for determining retirement benefits.

Defined Contribution Plan: A plan in which the employer’s contribution to employee’s retirement or savings funds is specified.

Early Retirement Window: A type of golden offering by which employees are encouraged to retire early, the incentive being liberal pension benefits plus perhaps a cash payment.

Employee  Compensation: All forms of pay or rewards going to employees and arising from their employment.

Employee Assistance Program (EAP): A formal employer program for providing employees with counseling and/or treatment programs for problems such as alcoholism, gambling, or stress.

Employee Retirement Income Security Act ( ERISA- US): Signed into law by President Ford in 1974 to require that pension rights be vested, and protected by a government agency.

Employee Retirement Income Security Act (ERISA- US): The law that provides government protection of pensions for all employees with company pension plans. It also regulates vesting rights (employees who leave before retirement may claim compensation from the pension plan).

Employee Stock Ownership Plan ( ESOP): A corporation contributes shares of its own stock to a trust in which additional contributions are made annually. The trust distributes the stock to employees on retirement or  separation from service.

employment  equity  the  policy  of  giving  preference  in  employment  opportunities  to  qualified  people  from  sectors  of  society  that  were  previously  discriminated  against,  e.g.,  black  people,  women  and  people  with  disabilities 

Equal Pay Act of 1963 (US): An amendment  to  the  Fair  Labor  Standards  Act  designed  to require equal pay for women doing the same work as men

equity   fairness  of  treatment,  e.g.  equality  of  pay  for  the  same  type  of  job 

ex  gratia  payment  a  payment  made  as  a  gift,  with  no  other  obligations

exempt  not  covered  by  a  law,  or  not  forced  to  obey  a  law   

exempt  personnel  personnel  who  do  not  receive  payment  for  overtime  or  whose  wages  are  not  affected  by  minimum  wage  legislation

exploitation  the  unfair  use  of  cheap  labor  to  get  work  done

extra  hours  working  more  hours  than  are  normal   

factor  comparison  a  method  of  comparing  jobs  in  relation  to  factors  such  as  training  or  effort

Factor Comparison Method: A widely used method of ranking jobs according to a variety of skill and difficulty factors, then adding up these rankings to arrive at an overall numerical rating for each given job.

Fair Day's Work: Frederick Taylor's observation that haphazard setting of piecework requirements and wages by supervisors was not sufficient, and that careful study was needed to define acceptable production quotas for each job.

Fair Labor Standards Act (US): Congress passed this act in 1936 to provide for minimum wages, maximum hours, overtime pay, and child labor protection. The law has been amended many times and covers most employees.

fixed-term  contract  a  contract  of  employment  valid  for  a  fixed  period  of  time 

flat  organization  an  organization  with  few  grades  in  the  hierarchical  structure 

Flexible  Work  Regulations  (in  the  UK)  the  legal  right  for  a  parent  with  a  child  under  the  age  of  6,  or  with  a  disabled  child  under  the  age  of  18,  to  ask  that  their  working  hours  should  be  arranged  to  help  them  with  their  responsibilities

flexible  working  hours  /  flexible  work  a  system  where  employees  can  start  or  stop  work  at  different  hours  of  the  morning  or  evening  provided  that  they  work  a  certain  number  of  hours  per  day  or  week

Flexible Benefits Program: Individualized plans allowed by employers to accommodate employee preferences for benefits.

fringe  benefit  an  extra  item  such  as  a  company  car  or  private  health  insurance  given  by  a  company  to  employees  in  addition  to  a  salary

furlough  a  period  of  unpaid  leave  or  absence  from  work,  especially  for  military  personnel,  government  employees  or  expatriates

Gain sharing Plan: An incentive plan that engages employees in a common effort to achieve productivity objectives and share the gains.

Gain sharing  a  payment  scheme  where  all  the  members  of  a  group  of  employees  are  paid  extra  for  increased  productivity

genuine  material  factor  an  acceptable  reason  for  a  difference  in  salary  between  a  male  and  a  female  employee  (such  as  longer  experience)

glass  ceiling  a  mysteriously  invisible  barrier  to  promotion

golden  handcuffs  a  contractual  arrangement  to  make  sure  that  a  valued  member  of  staff  stays  in  their  job,  by  which  they  are  offered  special  financial  advantages  if  they  stay  and  heavy  penalties  if  they  leave

Golden Offerings: Offers to current employees aimed at encouraging them to retire early, perhaps even with the same pensions they would expect if they retired at, say, age 65.

Grade Definition: Written descriptions of the level of, say, responsibility and knowledge required by jobs in each grade. Similar jobs can then be combined into grades or classes.

graded  hourly  rate  a  pay  scale  where  pieceworkers  receive  different  rates  per  piece  completed  according  to  their  appraisal  ratings

Grades: A job classification system synonymous with class, although grades often contain dissimilar jobs, such as secretaries, mechanics, and firefighters. Grade descriptions are written based on compensable factors listed in classification systems, such as the federal classification system.

grading  an  assessment  of  an  employee’s  performance  by  giving  a  certain  grade  or  mark

grid  method  a  two-dimensional  method  of  job  evaluation  based  on  breadth  and  depth  of  responsibility

gross  earnings  total  earnings  before  tax  and  other  deductions

gross  salary  salary  before  tax  is  deducted

group   hardship  allowance  additional  pay  for  an  employee  who  accepts  an  assignment  in  difficult  conditions

Group Life Insurance: Provides lower rates for the employer or employee and includes all employees, including new employees, regardless of health or physical condition.

Guaranteed  Piece work Plan: The minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour.

Health Maintenance Organization (HMO): A prepaid health care system that generally provides routine round-the-clock medical services as well as preventative medicine in a clinic-type arrangement for employees, who pay a nominal  fee in addition to the fixed annual fee the employer pays.

highly-paid  earning  a  large  salary

hourly  rate  ,  hourly  wage  the  amount  of  money  paid  for  an  hour  worked

immediate  dismissal  ,  summary  dismissal  a  dismissal  without  giving  the  employee  any  notice  (usually  caused  by  a  crime  committed  by  the  employee,  or  drunkenness  or  violent  behavior  towards  other  employees)

incentive  something  which  encourages  a  customer  to  buy  or  employees  to  work  better

incentive  ceiling  a  limit  on  how  much  can  be  paid  on  the  basis  of  results

incentive  plan  /  incentive  scheme  /  incentive  program       a  scheme  which  encourages  better  work  by  paying  higher  commission  or  bonuses

incentive  stock  option  (in  the  United  States)  a  plan  that  gives  each  qualifying  employee  the  right  to  purchase  a  specific  number  of  the  corporation’s  shares  at  a  set  price  during  a  specific  time  period 

income  before  tax  gross  income  before  tax  has  been  deducted

income  tax  the  tax  on  a  person’s  income  (both  earned  and  unearned) 

income  tax  return  a  form  used  for  reporting  how  much  income  you  have  earned  and  working  out  how  much  tax  you  have  to  pay  on  it

increment  a  regular  automatic  increase  in  salary    _

indirect  compensation  a  non-financial  benefit  given  by  a  company  to  its  employees  (such  as  sports  facilities,  a  company  car  or  health  insurance)

inequity  unfairness  of  treatment,  e.g.  unequal  pay  for  the  same  type  of  job

inflated  salary  a  salary  which  is  increased  without  any  reason

inflation  a  greater  increase  in  the  supply  of  money  or  credit  than  in  the  production  of  goods  and  services,  resulting  in  higher  prices  and  a  fall  in  the  purchasing  power  of  money

interference  pay  pay  made  to  pieceworkers  who  have  not  had  enough  work  because  other  workers  making  parts  have  been  moved  to  other  jobs

interim  agreement  an  agreement  in  collective  bargaining,  which  is  designed  to  keep  a  strike  off  while  a  more  long-term  agreement  is  being  worked  out 

job  grading  the  process  of  arranging  jobs  in  a  certain  order  of  importance

Job Evaluation:  A systematic comparison done in order to determine the worth of one job relative to another.

labor  laws  laws  concerning  the  employment  of  workers

labor  relations  relations  between  management  and  employees

leave  of  absence  permission  to  be  absent  from  work

leisure  time  a  time  when  you  are  not  at  work,  used  for  amusement,  hobbies,

maternity  leave  a  period  when  a  woman  is  away  from  work  to  have  a  baby  but  is  often  still  paid

merit  award  /  merit  bonus  extra  money  given  to  an  employee  because  they  have  worked  well

Merit  Pay  ( Merit  Raise): Any salary increase awarded to an employee based on his or her individual performance.

minimum  salary  the  lowest  amount  of  money  that  an  employee  is  guaranteed  to  earn,  i.e.  their  basic  pay,  which  may  be  increased  if  an  employee  qualifies  for  a  bonus  by  performing  well

minimum  wage  the  lowest  hourly  wage  which  a  company  can  legally  pay  its  employees

net  salary  the  salary  which  is  left  after  deducting  tax  and  National  Insurance  contributions, where applicable

non-exempt  employee  a  person  whose  wages  are  subject  to  minimum  wage  legislation

notice  period  /  period  of  notice  the  time  stated  in  the  contract  of  employment  which  the  employee  or  company  has  to  allow  between  resigning  or  being  fired  and  the  employee  actually  leaving  their  job

obligatory  necessary  according  to  the  law  or  rules

overtime  hours  worked  more  than  the  normal  working  time  to  work  overtime  to  work  longer  hours  than  stated  in  the  contract  of  employment

overtime  rate  the  rate  of  pay  for  extra  time  worked

paid  leave  a  holiday  or  time  away  from  work  when  the  employee’s  wages  are  still  paid  even  though  they  are  not  working

paired  comparisons  a  method  of  assessment  where  jobs  to  be  assessed  are  each compared  with  all  others  and  a  final  score  for  each  obtained  (also  called  ‘job  ranking’)

paternity  leave  a  short  period  of  leave  given  to  a  father  to  be  away  from  work  when  his  partner  has  a  baby

pay  as  you  earn (PAYE)   a  tax  system,  where  income  tax  is  deducted  from  the  salary  before  it  is  paid  to  the  worker 

pay  slip  /  pay  statement  a  piece  of  paper  showing  the  full  amount  of  an  employee’s  pay,  and  the  money  deducted  as  tax,  pension  and  National  Insurance  contributions

Pay Grade Wage Curve: A pay grade is comprised of jobs of approximately equal difficulty. Shows the relationship between the value of the job and the average wage paid for this job.

payroll  the  list  of  people  employed  and  paid  by  a  company

pension  money  paid  regularly  to  someone  who  no  longer  works

Pension Benefits Guarantee Corporation (PBGC) (US): Established under ERI SA to ensure that pensions meet vesting obligations; also insures pensions should a plan terminate without sufficient funds to meet its vested obligations.

Pension Plans: Plans that provide a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability.

perk  an  extra  item  given  by  a  company  to  employees  in  addition  to  their  salaries  (such  as  company  cars  or  private  health  insurance)     

piece  rate  a  rate  of  pay  for  a  product  produced  or  for  a  piece  of  work  done  and  not  paid  for  at  an  hourly  rate 

piece  rate  wages  payments  based  on  the  number  of  units  produced

Piece Work Pay: A system of pay based on the number of items processed by each individual worker in a unit of time, such as items per hour or items per day.

piece-rate  system  a  system  of  payment  in  which  an  employee  is  paid  a  particular  amount  of  money  for  each  unit  that  they  produce

piecework  work  for  which  employees  are  paid  for  the  products  produced  or  the  piece  of  work  done  and  not  at  an  hourly  rate

pink  slip    an  official  letter  of  dismissal  given  to  an  employee 

Point Method: The job evaluation method in which a number of compensable factors are identified and then the degree to which each of these factors is present on the job is determined.

Preferred Provider Organization (PPO): Groups of health care providers that contract with employer’s insurance companies, or third-party payers to provide medical care services at a reduced fee.

Pregnancy  Discrimination Act (US): Amendment  to title VI I  of  the Civil  Rights Act  that prohibits sex discrimination based on "pregnancy, childbirth, or related medical  conditions."   It  requires employers  to provide  benefits - including sick leave and disability benefits and health and medical insurance - the same as for any employee not able to work because of disability.

Profit- Sharing Plan: A plan whereby most employees share in the company's profits.

profit-sharing  the  practice  of  dividing  profits  among  employees

promotion  the  act  of  moving  up  to  a  more  important  job

quid  pro  quo  money  paid  or  an  action  carried  out  in  return  for  something

ranking  system  a  way  of  calculating  the  value  of  jobs  and  sorting  them  into  different  levels

Ranking Method: The simplest method of job evaluation that  involves ranking  each  job relative to all other jobs, usually based on overall difficulty.

Rate Ranges: A series of steps or levels within a pay grade, usually based upon years of service.

red  circle  rate  a  pay  rate  which  is  above  the  minimum  rate  for  an  employee’s  evaluated  level

red  circling  the  practice  of  paying  staff  at  a  higher  rate,  even  if  their  jobs  have  been  downgraded

relocation  allowance  a  special  payment  given  to  an  employee  who  agrees  to  move  to  another  town  to  work

remuneration  package  the  salary,  pension  contributions,  bonuses  and  other  forms  of  payment  or  benefit  that  make  up  an  employee’s  total  remuneration

rest  break  a  period  of  time  during  the  working  day  when  an  employee  is  allowed  to  be  away  from  their  workstation  for  a  rest  or  meal  break  (Many  countries  have  laws  governing  how  often  employees  are  allowed  rest  breaks  and  how  long  those  rest  breaks  should  be,  depending  on  the  number  of  hours  the  employee  works  in  a  day.)

retention  bonus  a  bonus  payment  paid  to  employees  who  are  obliged  to  stay  on  to  close  down  a  business,  where  their  colleagues  will  have  been  eligible  for  redundancy  payments

reward  money  or  other  gains  from  effort

reward  management  the  creation  and  running  of  a  system  that  rewards  the  work  done  by  employees  (Reward  management  deals  not  only  with  basic  pay,  but  also  with  the  whole  remuneration  package  offered  to  employees  including  such  things  as  incentive  schemes  and  fringe  benefits.)

salaried  staff  staff  earning  salaries,  as  opposed  to  those  paid  on  different  terms

salary  deductions  money  which  a  company  removes  from  salaries  to  pay  to  the  government  as  tax,  National  Insurance  contributions,  etc.

salary  differentials  same  as  pay  differentials  salary  expectations  the  hopes  of  an  employee  that  their  salary  will  increase

salary  structure  the  organization  of  salaries  in  a  company  with  different  rates  of  pay  for  different  types  of  job

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.

sales  target  the  amount  of  sales  a  sales  representative  is  expected  to  achieve

save-as-you-earn  a  scheme  where  employees  can  save  money  regularly  by  having  it  deducted  automatically  from  their  wages  and  invested  in  National  Savings

Scanlon Plan: An incentive plan developed in 1937 by Joseph Scanlon and designed to encourage cooperation, involvement, and sharing of benefits.

Scientific Management: The careful, scientific study of the job for the purpose of boosting productivity and job satisfaction.

Severance Pay: A one-time payment some employers provide when  terminating an employee.

share  ownership  scheme  /  share  incentive  scheme  a  scheme  whereby  employees  in  a  company  can  buy  shares  in  it  and  so  share  in  the  profits 

short-term  contract  a  contract  of  employment  for  a  short  period  (such  as  six  months)

Sick Leave: Provides pay to an employee when he or she is out of work because of illness.

social  security  /  social  insurance     a  government  scheme  where  employers,  employees  and  the  self-employed  make  regular  contributions  to  a  fund  which  provides  unemployment  pay,  sickness  pay  and  retirement  pensions 

Social Security: Provides three types of benefits: retirement income  at  age  62 and thereafter; survivor's or death benefits payable to the employee's dependents regardless of age at time of death; and disability benefits payable to disabled employees and their dependents. These benefits are payable only if the employee is insured under the Social Security Act.

special  leave  leave  that  may  be  granted  to  an  employee  in  certain  special  circumstances

Spot Bonus: A spontaneous incentive awarded to individuals for accomplishments not readily measured by a standard.

standard  time  system      a  method  of  payment  whereby  an  employee  is  paid  on  the  basis  of  units  of  work  performed,  each  of  which  has  an  agreed  standard  time  which  is  established  after  work  study

Standard Hour  Plan: A plan by which a worker is paid a basic hourly rate, but is paid an extra percentage of his or her base rate for production exceeding the standard per hour or per day. Similar to piecework payment, but based on a percent premium.

statutory       fixed  by  law

statutory  holiday  a  holiday  which  is  fixed  by  law

statutory  maternity  pay (SMP)  payment  made  by  an  employer  to  an  employee  who  is  on  maternity  leave

statutory  notice  period  the  time  stated  in  the  contract  of  employment  which  the  employee  or  employer  has  to  allow  between  resigning  or  being  fired  and  the  employee  actually  leaving  their  job 

statutory  sick  pay  payment  made  each  week  by  an  employer  to  an  employee  who  is  away  from  work  because  of  sickness. 

stepped  pay  system   a  system  of  payment  for  work  according  to  rising  levels  of  performance

Stock Options: The right to purchase a stated number of shares of a company stock at today’s price at some time in the future.

Straight Piece work Plan: Under this pay system each worker receives a set payment for each piece produced or processed in a factory or shop.

sum  insured  the  largest  amount  of  money  that  an  insurer  will  pay  under  an  insurance  policy

Supplemental  Pay  Benefits: Benefits for time not worked such as unemployment insurance, vacation and holiday pay and sick pay.

Supplemental Unemployment Benefits: Provide for a guaranteed annual income in certain industries where employers must shut down to change machinery or due to reduced work. These benefits are paid by the company and supplement unemployment benefits.

task  payment  system  /  task  system  of  pay   a  payment  system  where  employees  are  paid  for  each  task  completed  on  time 

tax  deductions    money  removed  from  a  salary  to  pay  tax 

taxable  income   income  on  which  a  person  has  to  pay  tax

tax-free  with  no  tax  having  to  be  paid 

Team or Group 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 exceed the production standard.

tender  an  offer  to  do  something  for  a  specific  price

termination  the  end  of  a  contract  of  employment;  leaving  a  job  (resigning,  retiring,  or  being  fired  or  made  redundant)

termination  clause  a  clause  which  explains  how  and  when  a  contract  can  be  terminated

time  management  conscious  control  of  the  amount  of  time  you  spend  on  various  work  activities  in  order  to  maximize  your  personal  efficiency  (Time  management  involves  analyzing  how  you  spend  your  time,  deciding  how  important  each  of  your  different  work  tasks  is  and  reorganizing  your  activities  so  that  you  spend  most  time  on  the  tasks  that  are  most  important.)

time  off  time  away  from  work  granted  to  an  employee  to  attend  to  private  affairs

time  rate  a  rate  for  work  which  is  calculated  as  money  per  hour  or  per  week,  and  not  money  for  work  completed 

time  sheet  a  record  of  when  an  employee  arrives  at  and  leaves  work,  or  one  which  shows  how  much  time  a  person  spends  on  different  jobs  each  day

time-card  /  time-clock  card       a  card  which  is  put  into  a  timing  machine  when an  employee  clocks  in  or  clocks  out,  and  records  the  time  when  they  start  and  stop  work

time-keeping  the  fact  of  being  on  time  for  work 

travel  expenses  money  spent  on  travelling  and  hotels  for  business  purposes

Unemployment Insurance: Provides weekly benefits if a person is unable to work through some fault other than his or her own.

unfair  dismissal  the  act  of  removing  someone  from  a  job  for  reasons  which  are  not  fair. Unfair  dismissal  cannot  be  claimed  where  a  worker  is  dismissed  for  incapability,  gross  misconduct  or  in  cases  of  genuine  redundancy.

unfair  labor  practices  illegal  activities  by  workers  or  employers

unpaid  holiday  /  unpaid  leave  leave  during  which  the  employee  does  not  receive  any  pay

vacation  a  holiday  or  period  when  people  are  not  working

Variable Pay: Any plan that ties pay to productivity or profitability, usually as one-time lump payments.

Vesting: Provision that money placed in a pension fund cannot be forfeited for any reason.

wage  money  paid  to  an  employee  in  return  for  work  done,  especially  when  it  is  paid  weekly  and  in  cash 

wage  arrears  unpaid  wages  which  are  owed

wage  differentials  differences  in  salary  between  employees  in  similar  types  of  jobs.  Same  as  pay  differentials 

wage  adjustments  changes  made  to  wages

wage  incentive  a  financial  benefit  offered  as  a  reward  to  employees  who  perform  well  in  a  specified  area

wage  review  the  examination  of  salaries  or  wages  in  a  company  to  see  if  the  employees  should  earn  more

waiver  clause  a  clause  in  a  contract  giving  the  conditions  under  which  the  rights  in  the  contract  can  be  given  up

Walsh- Healey Public Contract Act (US): 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.

weekday  a  normal  working  day

weekly  rate  money  paid  for  one  week’s  work

welfare  the  practice  of  looking  after  people

welfare  services  benefits  and  assistance  provided  by  an  employer  to  their  staff  (help  with  funeral  expenses,  counseling,  legal  advice,  health  checkups,  etc.)

wellness  program  a  company  program  that  offers  benefits,  activities  or  training  designed  to  improve  employees’  health  and  fitness

worker’s  compensation  the  liability  of  an  employer  to  pay  compensation  to  an  employee  or  their  family,  when  the  employee  has  been  injured  or  killed  while  working

Worker's Compensation: Provides income and medical benefits to work-related accident victims or their dependents regardless of fault.

working  hours  the  hours  for  which  an  employee  is  paid  to  work  agreed  as  part  of  a  contract

wrongful  dismissal  the  act  of  removing  someone  from  a  job  for  reasons  which  are  wrong


Labor Relations


Agency Shop: A form of union security in which employees that do not belong to the union must still pay union dues on the assumption that union efforts benefit all workers.

Arbitration: The most definitive type of third-party intervention, in which the arbitrator usually has the power to determine and dictate the settlement terms.

Authorization  Cards:  In order to petition for a union election, the union must show that at least 30% of employees may be interested in being unionized. Employees indicate this interest by signing authorization cards.

Bargaining Unit: The group of employees the union will be authorized to represent

bona  fide  union  a  union  which  is  freely  chosen  by  employees  without  any  influence  from  the  employer

Boycott: The combined refusal by employees and other interested parties to buy or use the employer’s products.

Closed Shop: A form of union security in which the company can hire only union members. This was outlawed in 1947 but still exists in some industries (such as printing).

Collective Bargaining: The process through which representatives of management and the union meet to negotiate a labor agreement.

conjunctive  bargaining   collective  bargaining  where  the  union  has  to  settle  on  the  management’s  terms

Corporate Campaign: An organized effort by the union that exerts pressure on the corporation by pressuring the company’s other unions, shareholders, directors, customers, creditors, and government agencies, often directly.

Economic Strike: A strike that results from a failure to agree on the terms of a contract that involve wages, benefits, and other conditions of employment.

employee advocacy  HR must take  responsibility  for  clearly  defining  how  management should be treating employees, make sure employees have the mechanisms required to contest unfair practices, and represent the interests of employees within the framework of its primary obligation to senior management.

free  collective  bargaining  negotiations  between  management  and  trade  unions  about  wage  increases  and  working  conditions

Good Faith Bargaining: A term that means both parties are communicating and negotiating and those 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.

green  ban  a  ban  imposed  by  unions  on  work  that  they  consider  to  be  a  threat  to  the  natural  environment  or  to  an  area  of  historical  significance

Grievance: Any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer.

hostile  work  environment  working  surroundings  which  are  unfriendly

human  relations  management  management  based  on  the  importance  of  ensuring  good  relations  and  cooperation  in  an  organization

Illegal Bargaining Items: Items in collective bargaining that are forbidden by law; for example, the clause agreeing to hire "union members exclusively" would be illegal in a right-to-work state.

ILO  abbr  International  Labor  Organization


industrial  psychology  a  study  of  human  behavior  and  mental  health  in  the  workplace

labor  union  an  organization  which  represents  employees  who  are  its  members  in  discussions  about  wages  and  conditions  of  work  with  management

Landrum -Griffin  Act (US):  The law aimed at protecting union members from possible wrongdoing on the part of their unions.

labor  dispute  a  conflict  or  disagreement  between  employer  and  employees  or  between  the  groups  who  represent  them

Lockout: A refusal by the employer to provide opportunities to work.

Mandatory Bargaining Items: Items in collective bargaining that a party must bargain over if they are introduced by the other party--for example, pay.

Mediation: Intervention in which a neutral third party tries to assist the principals in reaching agreement.

National emergency strikes: Strikes that might "imperil the national health and safety."

National Labor Relations Board (NLRB) US: The agency created by the Wagner Act to investigate unfair labor practice charges and to provide for secret-ballot elections and majority rule in determining whether or not a firm’s employees what a union.

National Labor Relations(or Wagner) Act (US): 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.

Norris-LaGuardia Act (US): 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, or coercion."

Open Shop: Perhaps the least attractive type of union security from  the  union's point of view, the workers decide whether or  not  to join the union; and those who join must pay dues.

procedural  agreement  an  agreement  between  a  trade  union  and  management  on  procedure  to  be  followed  during  negotiations  or  bargaining

right  of  association  the  right  of  employees  to  join  a  union  (as  opposed  to  the  right  to  dissociate,  i.e.  the  right  to  refuse  to  join  a  union) 

right  to  dissociate  the  right  of  employees  to  refuse  to  join  a  union

Sympathy Strike: A strike that takes place when one union strikes in support of another.

strike  stopping  of  work  by  the  workers  (because  of  lack  of  agreement  with  management  or  because  of  orders  from  a  union)

Taff- Hartley  Act (US):  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.

Unfair Labor Practice Strike: A strike aimed at protesting illegal conduct by the employer.

Union Sailing: Refers to union organizing tactics by which workers who are in fact employed full-time by a union as undercover organizers are hired by unwitting employers.

Union Shop: A form of union security in which the company can fire nonunion people, but they must join the union after a prescribed period of time and pay dues. (If they do not, they can be fired.)

Voluntary Bargaining Items: Items in collective bargaining over which bargaining is neither illegal nor mandatory--neither party can be compelled against its wishes to negotiate over those items.

Wildcat  Strike: An unauthorized strike occurring during the term of a contract.


Health & Safety


Burnout: The total depletion of physical and mental resources caused by excessive striving to reach an unrealistic work-related goal.

Citations: Summons informing employers and employees of the regulations and standards that have been violated in the workplace.

first  aid  help  given  by  an  ordinary  person  to  someone  who  is  suddenly  ill  or  injured,  given  until  full-scale  medical  treatment  can  be  given

first  aid  kit  /  first  aid  box       a  box  with  bandages  and  dressings  kept  ready  to  be  used  in  an  emergency

health  and  safety  the  area  of  policy  and  the  law  that  deals  with  the  well-being  of  employees  at  work  and  is  intended  to  protect  them  against  accidents  and  risks  to  their  health

occupational  accident  an  accident  which  takes  place  at  work

occupational  health  /  occupational  hygiene       a  branch  of  medicine  dealing  with  the  health  of  people  at  work

occupational  illness       an  illness  associated  with  a  particular  job  (Occupational  illnesses  include  lung  disease,  which  can  affect  miners,  repetitive  strain  injury,  which  can  affect  keyboard  users,  and  asbestosis,  which  is  caused  by  working  with  asbestos.)

occupational  injury      an  injury  which  is  caused  by  a  certain  type  of  work

occupational  psychology      the  study  of  the  behavior  of  people  at  work

Occupational Safety and Health Act (US): 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 Administration (OSHA): The agency created within the Department of Labor to set safety and health standards for almost all workers in the United States.

random  inspection  an  inspection  carried  out  without  any  particular  choice  and  without  warning

safety  audit  a  check  of  the  workplace  to  see  how  safety  regulations  are  being  implemented 

safety  measures  actions  to  make  sure  that  something  is  safe

safety  precautions  actions  to  try  to  make  sure  that  something  is  safe

stress  nervous  tension  or  worry,  caused  by  overwork,  difficulty  with  managers,  etc. 

stress  management  a  way  of  coping  with  stress-related  problems  at  work

Unsafe Acts: Behavior tendencies and undesirable attitudes that cause accidents.

Unsafe Conditions: The mechanical and physical conditions that cause accidents.