Human Resource Management Basic Definitions

Human Resource Management 

Human Resource Management or HRM related definitions at a glance :

Term	Definition
4/5ths rule:	Rule stating that discrimination generally is considered to occur if the selection rate for a protected group is less than 80% (4/5ths) of the selection rate for the majority group or less than 80% of the group’s representation in the relevant labor market
401(k) plan:	An agreement in which a percentage of an employee’s pay is withheld and invested in a tax deferred account
Absolute standards	Measuring an employee’s performance against some established standards
Accept errors	Accepting candidates who would later prove to be poor performers
Action learning	A training technique by which management trainees are allowed to work full time analyzing and solving problems in other departments
Active practice:	The performance of job-related tasks and duties by trainees during training
Adjective rating scales	A performance appraisal method that lists a number of traits and a range of performance for each
Adverse impact	The overall impact of employer practices that result in significantly higher percentages of members of minorities and other protected groups being rejected for employment placement, or promotion
Adverse selection	A situation in flexible benefits administration where those in greatest need of a particular benefit choose that benefit more often than the average employee
Adverse selection:	Situation in which only higher-risk employees select and use certain benefits
Affirmative action	Steps that are taken for the purpose of eliminating the present effects of past discrimination
Affirmative action plan (AAP):	Formal document that an employer compiles annually for submission to enforcement agencies
Affirmative action:	Process in which employers identify problem areas, set goals, and take positive steps to enhance opportunities for protected-class members
Agency shop	A form of union security in which employees who do not belong to the union must still pay union dues on the assumption that union efforts benefit all workers
Albemarle Paper Company v. Moody	Supreme Court case in which it was ruled that the validity of job tests must be documented and that employee performance standards must be unambiguous
Alternation ranking method	Ranking employees from best to worst on a particular trait
Apathy	Significant dysfunction tension resulting in no effort being made
Applicant pool:	All persons who are actually evaluated for selection
Applicant population:	A subset of the labor force population that is available for selection using a particular recruiting approach
Application form	The from that provides information on education, prior work record, and skills
Appraisal interview	An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths
Apprenticeship	A time – typically two to five years – when an individual is considering to be training to learn a skill
Arbitration:	Process that uses a neutral third party to make a decision
Arbitration:	Process that uses a neutral third party to make a decision
Assessment center:	A collection of instruments and exercises designed to diagnose individuals’ development needs
Attitude survey:	One that focuses on employees’ feelings and beliefs about their jobs and the organization
Attribution theory	A theory of performance evaluation based on the perception of who is in control of an employee’s performance
Attrition	A process whereby the jobs of incumbents who leave for any reason will not be filled
Authority	The right to make decisions, direct others’ work, and give orders
Autonomy	The freedom and independence involved in doing one’s job
Autonomy:	The extent of individual freedom and discretion in the work and its scheduling
Availability analysis:	An analysis that identifies the number of protected-class members available to work in the appropriated labor markets in given jobs
Baby boomers	Those individuals born between 1946 and 1964
Baby busters	Those individuals born in 1965 and years after.  Often referred to as generation Xers
Background investigation	The process of verifying information job candidates provide
Bargaining unit:	Employees eligible to select a single union to represent and bargain collectively for them
Base pay:	The basic compensation an employee receives, usually as a wage or salary
Behavior modeling	A training technique in which trainees are first shown good management techniques in a film, are then asked to play roles in a simulated situation, and are then given feedback and praise by their supervisor
Behavior modeling:	Copying someone else’s behavior
Behavioral interview:	Interview in which applicants give specific examples of how they have performed a certain task or handled a problem in the past
Behavioral rating approach:	Assesses an employee’s behaviors instead of other characteristics
Behavioral symptoms	Symptoms of stress characterized by decreased productivity, increased absenteeism and turnover, and increased smoking and alcohol/substance consumption
Behaviorally Anchored Rating Scales (BARS)	A performance appraisal technique that generates critical incidents and develops behavioral dimensions of performance.  The evaluator appraises behaviors rather than traits
Benchmark job:	Job found in many organizations and performed by several individuals who have similar duties that are relatively stable and require similar KSAs
Benchmarking:	Comparing specific measures of performance against data on those measures in other “best practice” organizations
Benefit:	An indirect reward given to an employee or group of employees as a part of organizational membership
Benefit:	Indirect compensation given to an employee or group of employees as a part of organizational membership
Benefits needs analysis:	A comprehensive look at all aspects of benefits
Blind-box ad	An advertisement in which there is no identification of the advertising organization
Blue Cross	A health insurer concerned with the hospital side of health insurance
Blue Shield	A health insurer concerned with the provider side of health insurance
Bona fide occupational qualification (BFOQ):	Characteristic providing a legitimate reason why an employer can exclude persons on otherwise illegal basis of consideration
Bonus:	A one-time payment that does not become part of the employee’s base pay
Boycott	The combined refusal by employees and other interested parties to by or se the employer’s products
Broad banding:	Practice of using fewer pay grades having broader ranger than in traditional compensation systems
Bulletin board	A means a company uses to post information of interest to its employees
Burnout	The total depletion of physical and mental resources caused by excessive striving to reach an unrealistic work-related goal
Business agent:	A full time union official who operates the union office and assists union members
Business necessity:	A practice necessary for safe and efficient organizational operations
Career stages	An individual’s career moves through five stages: exploration, establishment, mid-career, late-career, and decline
Career:	The series of work-related positions a person occupies throughout life
Case study method	A development method in which the manager is presented with a written description of an organizational problem to diagnose and solve
Central tendency	A tendency to rate all employees the same way, such as rating them all average