#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 referredtothe 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.