GLOSSARY

80% rule The measurement known as a “rule of thumb” used to test for disparity in treatment during any type of employment selection decisions; also identified as Adverse Impact.

ADDIE A five-step instructional design process: Analysis, Design, Development, Implementation, Evaluation.

Administrative exemption Exemption from overtime payment based on several qualifying factors including minimum pay requirement, and exercise of discretion and independent judgment performing work directly related to management of general business operations.

Administrative services only plan Health insurance programs in which all of the risk is assumed by the employer.

Adult learning The process of learning associated with people who are over the age range of 18 and generally referred to as nontraditional learners; also identified as Andragogy.

Adverse impact A legal category of illegal employment discrimination involving groups of workers and statistical proofs.

Adverse treatment A legal category of illegal employment discrimination involving individual treatment or “pattern and practice” treatment of groups of workers.

Affirmative action Use of special outreach and recruiting programs to ensure participation of qualified job candidates, vendors, or students in employment, employer purchasing programs, or college admissions.

Aggregate stop-loss coverage The health plan is protected against the risk of large total claims from all participants during the plan year.

Aging A technique used to make outdated data current.

Andragogy The study of how adults learn.

Applicant tracking system A method for retention of detailed information about job applicants either manual- or computer-based.

Assets The properties an organization owns, tangible and intangible.

Automatic step rate Division of the pay range into several steps that can be advanced by an employee when time-in-job has met the step requirement.

Average Arithmetic average or mean arrived at by giving equal weight to every participant’s actual pay; also, a number that is arrived at by adding quantities together and dividing the total by the number of quantities.

Back pay Payment of salary or wages that should have been paid initially, usually as a form of remedy for a complaint of discrimination.

Background checks Investigation of an individual’s personal history including employment, educational, criminal, and financial.

Balance sheet A statement of a business’s financial position.

Balanced scorecard A big picture view of an organization’s performance as measured against goals in areas such as finance, customer base, processes, learning, human capital, and growth.

BARS Behaviorally anchored rating scales.

Base-pay systems Single or flat-rate systems, time-based step rate systems, performance-based merit pay systems, productivity-based systems, and person-based systems.

Bell curve Used to describe the mathematical concept called “normal distribution.”

Benefits needs assessment or analysis Collection and analysis of data to determine whether the employer’s benefits programs actually meet their objectives.

Bereavement leave Paid or unpaid time off to attend funerals.

Bill A proposal presented to a legislative body in the U.S. government to enact a law.

Boycott A protest action that encourages the public to withhold business from an employer that is targeted by a union.

Branding The process of conveying key organizational values and associations.

Broadbanding Combination of several pay grades or job classifications with narrow range spreads and a single band into a wider spread.

Budgeting Forecasting income and expenses by category and subcategory.

Business acumen Knowledge and understanding of the financial, accounting, marketing, and operational functions of an organization.

Business concepts An idea for producing goods or services that identifies the benefits that can be achieved for prospective customers or clients.

Business continuity The ability to continue conducting business following an interruption of some sort.

Business ethics Generally accepted norms and expectations for business management behavior.

Career development A process involving individuals expanding their knowledge, skills, and abilities as they progress through their careers.

Career management Planning, preparing, and implementing employee career paths.

Career planning Activities and actions that individuals follow for a direction-specific career path.

Case studies Simulation of a real-world problem that demands some application of skill or knowledge to resolve problems or issues.

Cash awards Rewards for exceeding performance goals, a formula-based bonus based on a percentage of profits or other pre-established measurement.

Certification of a union Formal recognition of a union as the exclusive bargaining representative of a group of employees.

Change management Transitioning individuals, groups, teams, and institutions to a desired future state.

Change programs Strategic approach to organizing and implementing specific changes (for example, policies or procedures) within an organization.

Child care services Programs designed to help working parents deal with the ongoing needs of pre-school or school-aged children.

Code of conduct An employment policy listing personal behaviors that are acceptable and required in the workplace.

Code of ethics Principles of conduct that guide behavior expectations and decisions.

Cognitive learning The refining of knowledge by adding new information thereby expanding prior knowledge.

Collective bargaining A formal process of negotiating working conditions with an employer for a work group represented by a union.

Collective bargaining agreements Union contracts for a represented group of employees and designated employers. A term usually used in the private sector.

Combination step-rate and performance Employees receive step-rate increases up to the established job rate. Above this level, increases are only granted for superior job performance.

Communication skills Verbal and written abilities that enable an individual to transmit and receive messages.

Commuter assistance Employer assistance programs designed to help defray public transportation costs. associated with going to and from work.

Compa-ratios An indicator of how wages match, lead, or lag the midpoint of a given pay range computed by dividing the worker’s pay rate by the midpoint of the pay range.

Compensatory damages A monetary equivalent awarded for pain, suffering, and emotional distress as a result of a legal proceeding.

Competencies Measurable or observable knowledge, skills, abilities, and behaviors critical to successful job performance.

Competency-based system Pay is linked to the level at which an employee can perform in a recognized competency.

Compliance evaluation Formal audit by the Office of Federal Contract Compliance Programs (OFCCP) of a federal contractor subject to OFCCP oversight.

Computer employee exemption Exemption from overtime payment based on several qualifying factors, including minimum pay requirement, job duties involving computer programming, software analysis, or software engineering.

Computer-based testing (CBT) Testing delivery method via computer, in person at a testing center.

Construct validity The degree to which a test measures what it claims to measure.

Consumer price index The average of prices paid by consumers for goods and services.

Content validity The extent a test measures all aspects of a given job.

Contract labor Work performed under the terms of a legally enforceable contract.

Contract negotiation The process of give and take related generally to content details and provisions of an employment contract such as a union agreement or Memorandum of Understanding (MOU).

Control chart A chart that illustrates variation from normal in a situation over time.

Controlling A management function involving monitoring the workplace and making adjustments to activities as required.

Cooperative learning A strategy in which a small group of people working on solving a problem or completing a task in a way that each person’s success is dependent on the group’s success.

Copyright A form of protection for authors or original works.

Core competency A unique capability that is essential or fundamental to a particular job.

Corporate governance The mechanisms, processes, and relations by which corporations are controlled and directed.

Corporate responsibility (CR) Strategic goals achieved through local community relationships around social needs and issues.

Cost benefit analysis (CBA) A business practice in which the costs and benefits of a particular situation are analyzed as part of the decision process.

Cost containment Efforts or activities designed to reduce or slow down cost expenses and increases.

Cost of living adjustment Pay increase given to all employees on the basis of market pressure, usually measured against the consumer price index (CPI).

Cost per hire The measurement of dollar expense required to hire each new employee.

Credit report Report obtained from one of the major credit reporting agencies that explains the individual’s personal rating based on financial history.

Criterion-related validity Empirical studies producing data that show the selection procedure(s) are predictive or significantly related with important elements of job performance.

Critical Path Method (CPM) A sequence of activities in a project plan that must be completed on time for the project to be completed on the due date.

Cross-functional work team A group of people from different functions working together to generate production or problem resolution.

Cultural blending The blending of different cultural influences in the workforce.

Culture Societal forces affecting the values, beliefs, and actions of a group of people.

Deauthorization of a union Removal of “union security” from the contract. The union remains as the exclusive bargaining representative, and the collective bargaining agreement remains in effect, but employees are not forced to be members or pay dues to the union.

Decertification of a union Removal of a union as the exclusive bargaining representative of the employees.

Defamation Publication of something about an individual that the writer knows is untrue.

Demand analysis Estimation of what customers, clients, or patrons will want in the future.

Demonstration Showing students how something is done.

Dental plans Medical insurance programs that cover some or all of the cost of dental services for subscribers.

Differential piece rate system Employee receives one rate of pay up to the production standard and a higher rate of pay when the standard is exceeded.

Direct compensation Base pay, commissions, bonuses, merit pay, piece rate, differential pay, cash award, profit sharing, gainsharing.

Directing Managing or controlling people to willingly do what is wanted or needed.

Disaster recovery plans A set of procedures used to protect and recover a business from a natural or other disaster that has impacted the organization or employer.

Discipline Forms of punishment to assure obedience with policies.

Diversity and inclusion The practice of embracing differences of race, culture, and background, and ensuring that everyone is a participant in workplace processes.

Diversity programs Methods for recognizing and honoring various types of employee backgrounds.

Divestiture The sale of an asset.

Dual-ladder A system that enables a person to advance up either the management ladder or technical career development ladder in an organization.

Due diligence The first step in mergers and acquisitions involving a broad scope of research and investigation.

Elder care Programs to help employees deal with responsibilities for care of family elders.

E-learning Internet-based training programs that can be instructor led or self paced.

Emotional intelligence (EQ or EI) The ability of an individual to have understanding and sensitivity for another’s emotions and control over their own.

Employee assistance programs Employer-sponsored benefits that provide a number of services that help promote the physical, mental, and emotional wellness of individual employees who otherwise would be negatively impacted by health-related crises.

Employee complaints Written or verbal statements of dissatisfaction from an employee that can involve charges of discrimination, lack of fairness, or other upset.

Employee engagement Where employees are fully absorbed by and enthusiastic about their work and so take positive action to further the organization’s reputation and interests.

Employee leasing Contracting with a vendor who provides qualified workers for a specific period of time at a specific pay rate.

Employee relations programs Methods for management of the employer-employee relationship.

Employee stock ownership plans Retirement plans in which the company contributes its stock, or money to buy its stock, to the plan for the benefit of the company’s employees.

Employee stock purchase plans Programs allowing employees to purchase company stock at discounted prices.

Employee surveys Tools used to gather opinions of employees about their employment experiences.

Employee-management committees Problem-solving groups of management and non-management employees focused on specific issues within the workplace.

Employer sick leave Paid leave for a specified number of hours or days absent from work due to medical conditions.

Employment affirmative action Programs required by federal regulations for some federal contractors to implement outreach and recruiting programs when the incumbent workforce is significantly less than computed availability.

Employment policies Rules by which the workplace will be managed.

Employment reference checks Verification of references, both personal and professional, provided by a job candidate on an application form or resume.

Employment testing Any tool or step used in the employment selection process. Commonly includes written tests, interviews, resume review, or skill demonstration.

Employment-at-will A legal doctrine that describes an employment relationship without a contract where either party can end the relationship at any time for any reason.

Environmental footprints The effect that a person, company, activity, etc. has on the environment.

Environmental scanning A process of studying the environment to pinpoint potential threats and opportunities.

Equal pay Providing equal compensation to jobs that have the same requirements, responsibilities, and working conditions regardless of the incumbent’s gender.

Equity The difference between income and liabilities in a for-profit organization.

Ethics Principles and values that set expectations for behaviors in an organization.

Ethnocentric A policy calling for key management positions to be filled by expatriates.

Evacuation plan A written procedure for moving employees out of the work location to a safer location in case of fire or natural disaster.

Evaluation The ability to judge.

E-Verify A government database that employers access to confirm a match between a new employee’s name and Social Security Number.

Executive coaching Coaching senior and executive-level management by a third party.

Executive exemption Exemption from overtime payment based on several qualifying factors, including supervision and minimum pay requirements.

Executive incentives Variable compensation additives for executive employees that may include company stock or use of company facilities, such as vacation timeshares. These are usually variable based on the profitability of the company.

Exempt job A job with content that is exempt from the FLSA requirement to pay overtime for work over 40 hours per week. Exemption can be based on several designated factors.

Exit interviews Discussions with departing employees to explore how they feel about their experience as an employee and what recommendations they might have for the employer.

Expatriates Employees working in a country other than that of their origin.

External coaching Coaching that is provided by a third party or by a certified coach.

Extrinsic rewards Rewards such as pay, benefits, incentive bonuses, promotions, time off, and so on.

Factor-comparison job evaluation A process that involves each job by each compensable factor and then identifying dollar values for each level of each factor to develop an actual pay rate for the evaluated job.

Fast-track program A career development program that identifies high potential leaders for rapid career growth and organizational knowledge.

Fee-for-service plans Allows health plan members to go to any qualified physician, or other healthcare provider, hospital, or medical clinic and submit claims to the insurance company.

Fiduciary responsibilities A legal and ethical relationship between two or more parties.

Final warning Last step in the disciplinary process progression prior to removing the employee from the payroll.

Flat-rate or single system Each worker in the same job has the same rate of pay regardless of seniority or job performance.

Flexible spending account Allows employees to set aside a pre-established amount of money on a pre-tax basis per plan year for use in paying authorized medical expenses.

Floating holidays Designated paid time off that can be used at any time during the year with the employer’s approval.

Flow analysis How processes operate and how flows of products, data, or other items go through these processes.

Forced Choice An evaluation method in which the evaluator selects two of four statements that represent “most like” and “least like”.

Frequency distribution Listing of grouped pay data from lowest to highest.

Frequency tables Number of workers in a particular job classification and their pay data.

Front pay Payment of salary or wages that could have been earned had the individual continued to work on the job in question or had the person been employed for a future period of time.

Full-time Employees who work a designated number of hours per week, usually in the 30- to 40-hour range.

Fully funded plans Health insurance programs paid for entirely by the employer.

Functional work team A group of people from the same function working together to generate production or resolve problems.

Gainsharing plans Extra pay provided to individuals or groups of employees based on the gain in performance results in one measurement period over another period.

Gantt chart A project planning tool that scopes and monitors the activities of a project, the time line, and accountability.

Gap analysis Measurement of the difference between where you are and where you want to be.

General duty clause A provision in OSHA regulations that imposes a duty on all subject employers to ensure a safe and healthy working environment for their employees.

General pay increases A pay increase given to all employees regardless of their job performance and not linked to market pressures.

Geocentric A staffing policy wishing to place the best person in the job regardless of their country of origin.

Geographic-based differential pay Adjustment to base pay programs based on cost of living requirements in various geographic locations where employees work.

Geography Adjustments to survey numbers based on geographic differences with original survey content.

Glass ceiling A discriminatory practice that has prevented women and other protected class members from advancing to executive-level jobs.

Global Professional in Human Resources (GPHR) A global competency-based credential validating the skills and knowledge of an HR professional who operates in a global marketplace.

Golden parachute Provision in executive employment contracts that provides special payments or benefits to the executives under certain adverse conditions, such as the loss of their position.

Graphic organizers Diagrams, maps, and drawings/webs as illustrations of learning materials.

Green circle rates Pay at a rate lower than the minimum rate for the assigned pay range.

Green initiatives Relationships around community and social issues.

Grievances Formal employee complaints handled by a structured resolution process usually found in a union-represented workgroup.

Gross domestic product (GDP) The total value of goods and services produced in a country.

Group incentive program Pay to all individuals in a workgroup for achievement by the entire workgroup.

Group term life insurance Provides lump sum benefit to beneficiaries on the death of an insured.

Halo effect This occurs when an evaluator scores an employee high on all job categories because of performance in one area.

Harassment Persecution, intimidation, pressure, or force applied to employees by supervisors, co-workers, or external individuals that interferes with the employee’s ability to perform the job assignment.

Hazard pay Additional pay for working under adverse conditions caused by environment or due to specific circumstances.

Health insurance purchasing cooperatives Purchasing agents for large group of employers.

Health maintenance organization Healthcare program where the insurer is paid on a per person (capitated) basis and offers healthcare services and staff at its facilities.

Health reimbursement accounts Employer-funded medical reimbursement plans.

Health savings accounts A tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan.

High-deductible health plans These programs help employers lower their costs and allow employees with set-aside money to pay for out-of-pocket medical and medical-related expenses.

Histogram A graphic representation of the distribution of a single type of measurement using rectangles.

Horn effect This occurs when an employee receives a low rating in all areas due to one weakness influencing the evaluator.

Host-country nationals (HCN) Employees originating in the country where a remote work location is being established.

HR business partner HR staff that acts as an internal consultant to senior management.

HR Certification Institute (HRCI) The certifying non-profit professional organization for the human resources profession.

HR professional certification Status awarded to HR professionals by a recognized certifying agency after satisfying qualifying requirements.

HRCI Body of Knowledge (BOK) The description of a set of concepts, tasks, responsibilities, and knowledge associated with HRCI credentialing.

HRIS Human resources information system. Usually a computer-based collection of personal data for each employee.

Human capital The value of the capabilities, knowledge, skills, experiences, and motivation of a workforce in an organization.

Human Resource Business Professional (HRBP) A global, competency-based credential designed to validate generally accepted technical professional-level HR knowledge and skills.

Human Resource Management Professional (HRMP) Credential for those with mastery of generally accepted HR principles in strategy, policy development, and service delivery.

Human resources development (HRD) Systematically planned activities that help the organization’s workforce meet the current and future job and skills needs.

Human resources management (HRM) The direction of organizational systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals.

Incentive pay Pay designed to promote a higher level of job performance above the scope of the basic expectations of the job.

Incentive stock options Awards of rights to purchase company stock in the future at a price determined at the time of the grant.

Indirect compensation Social security, unemployment insurance, disability insurance, pensions, 401(k) and other similar programs, healthcare, vacations, sick leave, paid time off such as holidays.

Individual incentive program An offer to individual employees in a workgroup to receive extra pay based on achievement of clearly defined objectives.

Injury and Illness Prevention Programs (IIPP) A written workplace safety program conforming to the specifications of OSHA.

Inpatriates Employees working at corporate headquarters who originated in a different country.

Instructional methods Approaches to training that are either teacher-centered or learner-centered.

Internal coaching Coaching by trained coaches who are employees in an organization, or by supervisors and other leaders.

Internal investigation Gathering verbal and written information dealing with an issue that needs to be clarified.

Intrinsic rewards Rewards such as meaningful and fulfilling work, autonomy, and positive feedback that lead to high levels of job satisfaction.

Investigation A detailed search for facts involving records, witnesses, and other inputs.

Investigation file A collection of documents related to complaints or charges of discrimination, policy violation, or criminal behavior assembled by an employer about an employee or event.

Involuntary separations Individuals leaving the payroll for involuntary reasons, including such things as performance deficiencies, policy violations, or unauthorized absence.

Item Response Theory (IRT) Method used to pre-equate the difficulty level of questions on an exam.

Job analysis A process to identify and determine the particular job duties and requirements for a given job to fit into an employer’s hierarchy of reporting relationships and compensation scales.

Job application A form used to gather information significant to the employer about an individual who wants to be employed by this organization.

Job classification Comparison of jobs to an outside scale with a predetermined number of grades or classifications.

Job description A document that contains a summary of duties and responsibilities of a given job assignment, and a description of the physical and mental requirements of the job.

Job enlargement Broadening the scope of a job by expanding the number of tasks.

Job enrichment Increasing the depth of a job by adding responsibilities.

Job evaluation A systematic determination of the relative worth of jobs in an organization.

Job evaluation method Quantitative or non-quantitative programs allowing sorting or categorizing jobs based on their relative worth to the organization.

Job ranking Comparison of jobs based on each job’s measurable factors.

Job rotation The process of shifting a person from job to job.

Job sharing Two or more employees who work part-time in the same job to create one full-time equivalent person.

Judgmental forecasts Projections based on subjective inputs.

Judgment-based forecasting Simple estimates, the Delphi technique, focus group or panel estimates, or historically based estimates used in human resource management.

Knowledge Facts and information gathered by an individual.

Knowledge management The way an organization identifies knowledge in order to be competitive and for the design of succession plans.

Knowledge-based system Pay that is based on the level of knowledge an employee has in a particular field.

K-W-L table Display of what students know (K), what they want to know (W), and what they actually learned (L).

Labor cost differentials Adjustment to pay structures based on local competitive comparisons.

Leadership concepts The study of leadership styles and techniques.

Learning management system (LMS) A comprehensive system that tracks training content, employee skill sets, training histories, and career development planning.

Learning objectives (LO) Brief statements that define what will be expected to be learned.

Learning organization Organizations that adapt to changes.

Lecture An oral presentation intended to teach or present information.

Leniency errors This occurs when ratings of all employees fall at the high end of the range.

Leveling Adjustments to survey numbers by an appropriate percentage needed to achieve a match with specific jobs.

Liabilities An organization’s debts and other financial obligations.

Location-based differentials Adjustment to base pay programs based on work location remoteness, lack of amenities, climatic conditions, and other adverse conditions.

Lockout Employer action that prevents workers from entering the workplace to do their normal jobs.

Long-term care insurance Covers cost of long-term care at home, in an assisted living facility, in a nursing home, or as an inpatient in a hospice.

Long-term disability Begins where short-term disability ends. Covers some or all of employee’s income for up to a specified period, usually from six months to age 65 or an alternative number of years.

Long-term incentives Rewards for attaining results over a long measurement period.

Lump sum increases Either a standalone performance bonus or part of an annual pay increase.

Managed care plans Insurance that provides plan subscribers with managed health care with the purpose of reducing costs and improving the quality of care.

Management by Objectives (MBO) A method of performance appraisal that specifies the specific performance goals that the employee and manager identify.

Management skills The abilities required to succeed at a management job. They include such skills as leadership, communication, decision making, behavior flexibility, organization, and planning.

Managerial estimates Projections based on managerial experience alone.

Mandatory bargaining issues Issues that must be discussed by employer and union when negotiating a contract of representation.

Market-based job evaluation Key jobs are measured and valued against the market and the remaining jobs are inserted into a hierarchy based on their whole-job comparison to the benchmark jobs.

Marketing The process of promoting the organization’s products or services including research, sales, and advertising.

Mathematically based forecasting Staffing ratios, sales ratios, or regression analysis used in human resource management analysis of data elements.

Mean (average) Arithmetic average or mean arrived at by giving equal weight to every participant’s actual pay.

Median The middle number in a range.

Medical file A collection of documents related to medical evaluations or status of an employee.

Memorandum of Understanding (MoU) Union contracts for a represented group of employees and designated employers. A term usually used in the public sector.

Mentoring A career relationship with an experienced individual with another who has less experience.

Mergers and acquisitions (M&A) The joining together of two separate organizations (merger) or by acquiring of another organization (acquisition).

Minimum premium plans Health insurance programs paid for in part by the employer and in part by the employee.

Mission statement A statement describing what an organization does, who its customer/client base is, and how it will do its work.

Mode The most frequently appearing number in a range.

Modified duty Temporary alteration of job duties that can be performed by an employee who is medically restricted for a designated period of time.

Motivation concepts Notions about what motivates individuals that have come about as a result of scientific studies.

Needs analysis See needs assessment.

Needs assessment Determining through analysis what gaps exist between a standard or an objective and existing capabilities.

Negligent hiring A legal tort claim against an employer for injury to someone inside or outside the organization in a way that should have been predicted by the employer if a proper background check had been completed.

Negligent retention A legal tort claim against an employer for keeping someone on the payroll who is known to be a danger to others inside or outside the organization.

Net assets The difference between income and liabilities in a non-profit organization.

New employee orientation The process of welcoming and orienting new workers into the organization.

Nominal group technique Development of forecasts based on input from several groups of people.

Non-cash awards Prizes, gifts, or recognition awards presented in recognition of service or production or other designated achievement.

Non-exempt job A job with content that requires payment of overtime for work in excess of 40 hours per week under the FLSA.

Objective measurement Impartial assessment of a result.

Objectives Something aimed at end-result intentions.

Occupational categories Groupings of job titles with similar levels of responsibility or skill requirements.

Occupational Safety and Health Administration (OSHA) The federal agency within the Department of Labor that is responsible for safety in workplaces other than mines.

Offshoring The relocation of functions or work to another country.

Oral employment contract Verbal agreement involving promises of duration or conditions in the employment relationship.

Oral warning Verbal notice that a rule or policy has been violated and further discipline will result if the behavior is repeated.

Organizational culture The way an organization treats its employees, customers, and others.

Organizational development The process of structured analysis and planning for strategic organizational accomplishment.

Organizational restructuring Radical change to an organization’s internal and external relationships.

Organizing Union efforts to convince employees to support a union as the designated bargaining agent for a workgroup.

Orientation A process or program introducing new employees to their jobs, organization, and facility.

Outplacement A program that assists employees in finding jobs when their job is eliminated.

Outside sales exemption Exemption from overtime payment based on several qualifying factors such as the primary duty being making sales or obtaining orders for products or services. Work must be customarily and regularly engaged away from the employer’s place of business.

Outsourcing Contracting for services with a third party rather than having them performed in the organization.

P2P Person-to-person.

Paid holidays Designated days each year that are awarded to employees as paid time off.

Paid leaves Paid time off for a specific designated reason.

Paid sick leave Accrued paid time off usually based on length of service.

Paid time off (PTO) A bank of hours in which an employer pools sick days, vacation days, and personal days that employees can use as the need arises.

Paid vacation Accrued paid time off usually based on length of service.

Parent-country nationals (PCN) Employees sent from the home country to a remote country for a work assignment.

Partially self-funded plans Health insurance programs where the employer purchases one or two types of stop-loss insurance coverage.

Part-time Employees who work fewer than the number of hours required to be considered full-time.

Pass rates The number of people shown as a percent, who were successful in passing an exam.

Pay differentials Additional compensation paid to an employee as an incentive to accept what would normally be considered as adverse working conditions, usually based on time, location, or working conditions.

Pay grades The way an organization organizes jobs of a similar value into job groups or pay grades as a result of the job evaluation process.

Pay ranges Pay amounts constrained by the upper and lower boundaries of each pay grade.

Pay survey Collections of data on prevailing market pay rates and information on starting wage rates, base pay, pay ranges, overtime pay, shift differentials, and incentive pay plans.

Payroll The function of recordkeeping and computation of compensation for each employee that results in issuance of a check or electronic deposit and collection and deposit of payroll taxes and other withholdings.

Payroll administration The act of managing the payroll function.

Payroll systems Usually computerized software programs designed to accept work time data and generate paychecks or electronic deposits.

Percentiles Distribution of data into percentage ranges, such as top 10 percent,

Performance appraisal A process of evaluating how employees perform in their jobs.

Performance grants Stock-based compensation that is linked to organizational performance.

Performance Improvement Program (PIP) A written plan that a supervisor provides an underperforming employee that specifies performance results required by a specified date.

Performance management The process used to identify, measure, communicate, develop, and reward employee performance.

Performance standards Indicators of what a job is to accomplish and how it is to be performed.

Performance-based merit pay system A system with pay determined based on individual job performance.

Permissible bargaining issues Issues that may be discussed by employer and union during contract negotiations. They are neither required nor prohibited.

Perquisites Special privileges for executives including club memberships, company cars, reserved parking, use of the company airplane, and other such benefits.

Personal protective equipment (PPE) Equipment worn by employees as protection against injury or illness hazards on the job.

Person-based system Employee capabilities rather than how the job is performed determine the employee’s pay.

Personnel file One or more sets of documents held by an employer that contain information about the employee’s employment status, performance evaluations, disability accommodations, and so forth, collectively considered one personnel file.

Phantom stock plan Employee benefit program giving selected senior management employees pretend stock rather than actual stock, with the same financial benefits over time.

Phased retirement Partial retirement while continuing to work a reduced schedule.

PHR-CA PHR credentials for experts in employment regulations and legal mandates specific to the state of California.

Picketing Technique used by unions to announce to the public a problem with an employer over issues involving working conditions or benefits.

Plateau curve A type of learning curve in which learning is fast at first, but then flattens out.

Point of service plan A type of managed care plan that is a hybrid of HMO and PPO plans.

Point-factor job evaluation An approach using specific compensable factors as reference points to measure relative job worth.

Policies Statements describing how an organization is to be managed.

Polycentric A condition that occurs when jobs at headquarters are filled with people from other countries and positions in remote countries are filled with people from the headquarters country.

Preferred provider organization Healthcare program including an in-network and an out-of-network option for services.

Premium-only plans (sometimes called “POP plans”) Authorized under the IRS Code, Section 125, allows employer-sponsored premium payments to be paid by the employee on a pre-tax basis instead of after-tax.

Premium pay Payment at rates greater than straight pay for working overtime, or other agreed condition.

Prepaid legal insurance Employer financial support for cost of routine legal services such as developing a will, real estate matters, divorces, and other services.

Prescription drug plans Medical insurance programs that cover some or all of the cost of prescription drugs for subscribers.

Procedures Methods to be used in fulfilling organizational responsibilities and policies.

Process-flow analysis A diagram of the steps involved in a process.

Productivity-based system Pay is determined by the employee’s production output.

Professional employer organization Vendor who, as a co-employer, provides qualified workers to a client organization.

Professional exemption Exemption from overtime payment based on several qualifying factors, including minimum pay requirement, advanced knowledge, or education and use of professional discretion and judgment.

Professional in Human Resources (PHR) Credential that demonstrates mastery of the technical and operational aspects of HR practices and U.S. laws and regulations.

Profit & Loss statement (P&L) A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time.

Profit-sharing plans Direct or indirect payments to employees that depend on the employer’s profitability.

Program evaluation and review technique (PERT) A project management tool used to organize, coordinate, and schedule tasks and people.

Progressive discipline A system of penalties involving increasing sanctions that can be taken if unwanted behaviors reoccur.

Prohibited bargaining issues Issues that may not be discussed by employer and union during contract negotiations. These are illegal issues under the NLRA.

Project hire An employee who is hired for the duration of a project. Once the project is completed, the employee is dismissed or laid off. See term employee.

Project management Guiding the implementation of a program from beginning to end.

Project management concepts The study of project management styles and techniques.

Project team A group of people with specific talent or experience brought together to resolve a problem or accomplish some other organizational goal.

Promotion Usually considered to be an increase in responsibility or compensation or both.

Proof of identity Document such as a passport or driver’s license that contains a photo of the individual that proves that person’s identity.

Proof of work authorization Document such as a Social Security Card or alien work registration authorization that proves the individual is authorized to work in the United States.

Punitive damages Translation of punishment into dollar amounts usually applied to employers who have done something egregious. The damages are intended to deter a defendant from engaging in conduct similar to that which was the basis of a lawsuit.

Qualitative analysis Research that explores the reasoning behind human behavior; often uses open-ended interviewing.

Quantitative analysis Research based on quantifiable data.

Quartiles Distribution of data into four quadrants: bottom quarter, lower-middle quarter, upper-middle quarter, and top quarter.

Range spreads Dispersion of pay from the lowest boundary to the highest boundary of a pay range.

Ratio analysis Comparison of current results or historic results at a specific point in time.

Reasonable accommodation Adjustment to a job condition or workplace that will allow an employee to perform the essential job duties.

Reasonable cause One possible determination from a state or federal enforcement agency concerning an investigation of a charge of illegal discrimination.

Recency error This occurs when an evaluator gives greater weight to recent events of performance.

Recognition Acknowledgment of accomplishments by individual employees.

Recordkeeping Documentation involving any aspect of employee management from discussions to personal employee information.

Red circle rates Pay at a rate higher than the maximum for the assigned pay range.

Regiocentric Orientation to culture in a specific region or collection of countries in regions such as Asia, South America, or Europe.

Regression analysis A statistical process of estimating the relationships among variables.

Rehire A former employee who is hired back onto the payroll.

Repatriates Employees who return to their home country following a work assignment in a different country.

Request for proposal (RFP) A written document asking for vendor input and suggestions along with cost estimates for any given work to be performed in the establishment.

Responsibility A required part of a job or organizational obligation.

Results measurement Methods for monitoring the amount of progress that has been accomplished toward a stated goal or objective.

Retention Measurement of the quantity of employees remaining with the employer over a given period of time.

Retiree An ex-employee who met the qualification requirements for retirement under the organization’s definition or plan.

Return on investment (ROI) The calculation showing the value of expenditures versus the investment.

Return to work Clearance to return to active employment activities following an illness, injury, or other absence.

Risk management Identifies and manages potential liabilities that come from operating an employer organization.

Role-play Technique for simulating individual participation in real-life roles involving performance or action with regard to solving a problem.

Safety audit The process of evaluating the workplace for safety hazards and determining any needed corrective action.

Sales personnel incentive programs Bonuses or commissions based on predetermined formulas involving performance and time.

Scaffolding Teacher modeling skills and thinking for students, allowing students to take over those expressions based on the initial structure provided by the teacher.

Scatter diagram A graphical tool that depicts the relationship among variables.

Seasonal employee A worker hired for a specific seasonal surge in work levels, common in retail industry and also agriculture and other food processing businesses.

Section 125 cafeteria plans Allows employees to pay certain qualified expenses on a pre-tax basis. See also Premium-only Plans

Self-directed team A group of people with a specific assignment permitted to select its own leadership and direction to take toward the problem or task.

Self-funded plans Health insurance programs where the employer assumes all of the risk as a self-insured entity.

Senior Professional in Human Resources (SPHR) Credential for those who have mastered the strategic and policy-making aspects of HR management in the United States.

Seniority pay increases A pay increase given based solely on length of service.

Severance package Voluntary payment by some employers to laid-off employees. May include pay for designated number of workdays, job retraining, outplacement services, and/or paid benefits premium assistance.

Short-term disability Begins where sick leave ends. Covers some or all of employee’s income for up to a specified period, usually six months.

Simulations Learning exercises designed to be as realistic as possible without the risk of a real-life circumstance.

Single or flat-rate system Each worker in the same job has the same rate of pay regardless of seniority or job performance.

Six Sigma A data-driven approach and method for eliminating defects.

Skill-based system Pay is based on the number and depth of skills that an employee has applicable to their job.

SMART goal model Model for creating goals that are: Specific, Measurable, Attainable/Achievable, Relevant/Realistic, and Timed.

Society of Human Resource Professionals (SHRM) The world’s largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries.

Solution analysis Statistical comparison of various potential solutions.

Specific stop-loss coverage The health plan is protected against the risk of a major illness for one participant, or one family unit, covered by the plan.

SPHR-CA SPHR credentials for experts in employment regulations and legal mandates specific to the state of California.

Standard deviation Scores in a set of data that spread out around an average.

Standards The yardstick by which amount and quality of output are measured.

State employment service The agency responsible for assisting citizens with job placement and unemployment benefits in each state.

Statistical forecasts Use of mathematical formulas to identify patterns and trends.

Step rate with performance considerations A system allowing performance to influence the size or timing of a pay increase along the step system.

Storytelling Use of multimedia technology such as PowerPoint to present interactive opportunities involving any subject.

Straight piece rate system Employee receives a base rate of pay and is awarded additional compensation for the amount of output produced.

Strategic business management That which formulates and produces HR objectives, programs, practices, and policies.

Strategic planning Identifying organizational objectives and determining what actions are required to reach those objectives.

Strategies Specific direction that outlines objectives to achieve long-term plans.

Strike Work stoppage resulting from a failed negotiation between employer and union.

Subject matter expert A person who is well versed in the content of a specific knowledge area.

Subjective measurement Assessment of a result using opinion or perception.

Substance abuse Personal use of alcohol or drugs in excess of amounts prescribed by a medical professional, or any use of illegal substances. Abuse generally results in an impairment of the individual’s physical or mental capacities.

Succession planning Identification of future key job openings and individuals who will be ready to fill those jobs.

Supplemental unemployment benefits An unemployment benefit in addition to government benefits offered by some employers.

Supply analysis Strategic evaluation of job candidate sources, plant locations, and other factors.

Suspension Temporary hiatus of active employment, usually as a disciplinary step, that can be paid or unpaid.

SWOT analysis A process in strategic planning that looks at an organization’s strengths, weaknesses, opportunities, and threats.

Talent management The management and integration of all HR activities and processes that align with the organization’s goals and needs.

Talent retention The retention of key talent, those employees who are the strongest performers, have high potential, or are in critical jobs.

Task force A group of people assembled to address major organizational issues.

Teacher exemption Exemption from overtime payment based on several qualifying factors, including the primary duty of teaching in an educational establishment.

Teams A group of people focused on specific organizational issues.

Temp-to-lease Conversion of a temporary agency–provided employee to regular employee status in the client organization.

Term employee An employee who is hired for the duration of a project. Once the project is completed, the employee is dismissed or laid off. See project hire.

Termination End of the employment relationship.

Third party Someone other than the two primary parties involved in an interaction.

Third-country nationals (TCN) Employees who are moved from one remote location to another remote location for a work assignment.

Third-party administrator plan Health insurance programs in which the employer assumes all of the risk but hires an independent claims department.

Time-based differential pay Shift pay, which is generally time-based rewards for employees who work what are considered undesirable shifts such as night shifts.

Time-based step rate system Determining pay rate based on the length of time in the job.

Total quality management (TQM) A management system for achieving customer satisfaction using quantitative methods to improve processes.

Total rewards Financial inducements and rewards as well as non-financial inducements and rewards, such as the value of good job content and good working environment.

Trainability The readiness and motivation to learn.

Training The process whereby people acquire skills, knowledge, or capabilities to perform jobs.

Training effectiveness Measurement of what students are expected to be able to do at the end of the training course or module.

Training techniques Approaches to training including virtual, classroom, on-the-job, and one-on-one tutoring.

Transactional leadership A leadership style that focuses on rewards, or threat of discipline, in an effort to motivate employees.

Transfer Movement of current employee to a different job in a different part of the organization.

Transformational leadership A leadership style that motivates employees by inspiring them.

Travel pay Extra pay provided for travel time, either under legal requirement or by other agreement.

Trend analysis Comparison of historical results with current results to determine a trend.

Tuition reimbursement Employer financial support for employee continuing education efforts.

Turnover analysis Comparison of the reasons for employees leaving the workforce and the organizational problems that may be causing them.

Uniform Guidelines Federal regulations that specify how job selection tools must be validated.

Unpaid sick leave Accrued unpaid time off, usually based on length of service.

Validity The extent to which a test measures what it says it measures.

Values The principles or standards of behavior that are most important to either an individual or entity.

Veteran A former member of the U.S. military service in any branch.

Veto The action of canceling or postponing a decision or bill in the U.S. legislature.

Vision care plans Medical insurance programs that cover some or all of the cost of vision care (exams and corrective lenses) for subscribers.

Vision statement A statement that describes the desired future of an organization.

Voluntary separations Individuals leaving the payroll for voluntary reasons including such things as retirement, obtaining a different job, returning to full-time education, or personal reasons.

Weighted average An average result taking into account the number of participants and each participant’s pay.

Workers’ compensation Program that provides medical care and compensates employees for part of lost earnings as a result of a work-related disability.

Workforce analysis Assessment of the workforce and things that are influencing it.

Workforce planning and employment The processes performed by an employer of recruiting, interviewing, staffing, ensuring equal employment opportunity, affirmative action orientating new employees, managing, retention, termination, and proper employee records.

Workplace violence Personal behavior that ranges from shouting to hitting or worse taking place on an employer’s premises.

Written employment contract Written agreement involving promises of duration or conditions in the employment relationship.

Written warning Written notice that a rule or policy has been violated and further discipline will result if the behavior is repeated.

Zero-based budgeting A model of budgeting that is based on expenditures being justified for each budget year.

Zero-sum A system in which the sum of the gains equals the sum of the losses.