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Students: Glossary
Human Resource Management Terms
Affirmative action
Also: Positive discrimination. Carried out on behalf of women and disadvantaged groups and members of such groups are placed in dominant positions.
Arbitration
Arbitration is a long-standing alternative to court-based litigation. The process has a number of variant forms but, in essence, nominated third parties (arbitrators) can make decisions that are binding on the parties to a dispute. Arbitration procedures can range between the informal and more rule-based systems that are similar to court procedures. Generally, arbitration is seen as providing such benefits as confidentiality, flexibility, speed and relative cheapness.
Assessment centre
Used for selection, promotion or employee development; participants are given a variety of exercises, tests, role-plays, interviews, etc. over a period of days. Several rates contribute to the assessment.
Attrition
A term used to describe voluntary and involuntary terminations, deaths and employee retirements that result in a reduction to the employer’s physical workforce.
Balanced Scorecard
A popular strategic management concept developed in the early 1990s by Drs Robert Kaplan and David Norton, the Balanced Scorecard is a management and measurement system that enables organisations to clarify their vision and strategy and translate them into action. The goal of the Balanced Scorecard is to tie business performance to organisational strategy by measuring results in four areas: financial performance; customer knowledge; internal business processes; and learning and growth.
Behaviourally Anchored Rating Scale (BARS)
An appraisal that requires raters to list important dimensions of a particular job and collect information regarding the critical behaviours that distinguish between successful and unsuccessful performance. These critical behaviours are then categorised and assigned a numerical value that is used as the basis for rating performance.
Behavioural-based interview
An interview technique that focuses on a candidate’s past experiences, behaviours, knowledge, skills and abilities by asking the candidate to provide specific examples of when they have demonstrated certain behaviours or skills as a means of predicting future behaviour and performance.
Behavioural competency
The behaviour of the employee who is the subject of measurement and appraisal in terms of whether or not the behaviours shown by the employee are those identified by job analysis/competency profiling as contributing to team and/or organisational success.
Benchmarking
A technique using quantitative or qualitative data to make comparisons between different organisations or different sections of the organisations.
Best practice
Strategies, activities or techniques that are viewed as being highly effective. Note that what is best practice in one context may not work in another.
Branding
The process of identifying and differentiating an organisation’s products, processes or services from another organisation by giving it a name, phrase or other mark.
Broad-banding
A pay structure that consolidates a large number of narrower pay grades into fewer broad bands with a wider salary range.
Bumping
The practice of allowing more senior-level employees whose positions have been slotted for elimination or downsizing the option of accepting an alternative position within the organisation, which they may be qualified to perform and which is currently occupied by another employee with less seniority.
Coaching
A one-to-one process between a manager and subordinate, whereby the former will ‘train’ the latter. See also mentoring.
Collective bargaining
The process by which (an) employer(s) will negotiate employment contracts with (a) union(s).
Common law
Decisions of the courts also known as precedent. Distinguished from legislation.
Competency
An underlying characteristic of a person; motive, trait, skill, aspect of one’s self-image or social role, or a body of knowledge.
Competency-based pay
A compensation system that recognises employees for the depth, breadth and types of skills they obtain and apply in their work. Also known as skill-based and knowledge-based pay.
Competitive advantage
‘People are the source of competitive advantage.’ Other systems in an organisation can be copied but not the people in the organisation. Condition that enables an organisation to operate in a more efficient or otherwise higher-quality manner than the organisations it competes with because it possesses some unique technical, product or other advantage.
Constructive dismissal
- Coercion by threats to act or promises to refrain and includes a resignation given as an alternative to being dismissed.
- A breach of duty by the employer leading a worker to resign.
Contingent workers
Employees who may be: casual labour, part-timers, freelancers, sub-contractors, independent professionals and consultants.
Contract for services
An agreement with an independent contractor.
Contract of service
An employment agreement.
Core competencies
The skills, knowledge and abilities which employees must possess in order to successfully perform job functions that are essential to business operations.
Core labour force
A small group of permanent workers, for example, strategists, planners, etc.
Corporate mission
The aims and objectives of an organisation.
Critical incidents
A method of avoiding the subjective judgements that are the feature of most ranking and rating systems. It is the keeping, by management, of a record of on-the-job incidents or behaviours that may be examples of (in)effective behaviour and used as background information for subsequent discussions and performance appraisals.
Delayering
The removal of hierarchical layers in an organisation.
Deregulation
The removal of entities such as financial markets, road and transport from governmental control.
Distance learning
The process of delivering educational or instructional programmes to locations away from a classroom or site to another location by varying technology such as video- or audio-conferencing, computers, web-based applications or other multimedia communications.
Disciplinary procedure
A procedure carried out in the workplace in the event of an employee committing some act contrary to the terms of the employment agreement. If the act is regarded as gross misconduct, this may lead to summary dismissal.
Discrimination
The favouring of one group of people to the detriment of others.
Distributive bargaining
Related to the process of negotiation. Also known as competitive bargaining. The parties are concerned with their respective shares of the benefits available and compete and conflict with each other until one side wins an increased share at the expense of the other.
Employee retention
Organisational policies and practices designed to meet the diverse needs of employees, and create an environment that encourages employees to remain employed.
Empowerment
The process of enabling or authorising an individual to think, behave, take action, and control work and decision-making in autonomous ways.
Equity theory
Based on the notion that people are motivated by a desire for fairness, that is, to be treated fairly and will compare their own efforts and the rewards of others in the organisation with a view to judging the fairness of their treatment.
Exit interview
An interview between an employee and a member of staff of the organisation that the employee is leaving to ascertain the reasons for the employee leaving the organisation. Should not be carried out by the employee’s immediate superior. Used for possible changes.
Extrinsic rewards
Two forms: money and non-money rewards. Examples: job enrichment, job enlargement, personal and working relationships with colleagues and supervisors and managers.
Fixed-term employment
An employee and an employer may agree that the employment of the employee will end at the close of a specified date or period or on the occurrence of a specified event or at the conclusion of a specified project.
Goal-setting
The process of setting and assigning a set of specific and attainable goals to be met by an individual, group or organisation.
Grievance
A complaint brought by one party to an employment contract against another party.
Gross misconduct
An act committed by any personnel likely to lead to summary dismissal.
Hierarchy of Needs
A psychology theory ascribed to Abraham H. Maslow in which he proposed that people will constantly seek to have their basic needs (sleep, food, water, shelter, etc.) fulfilled and that such needs ultimately determine behaviour.
Human capital
The collective knowledge, skills and abilities of an organisation’s employees.
Incentive pay
Additional compensation used to motivate and reward employees for exceeding performance or productivity goals.
Induction
The process of introducing a new employee into the organisation.
Intangible rewards
Non-monetary reinforcers, such as praise given to an employee in recognition of a job well done or a particular achievement.
International Labour Organization
An organisation set up by the United Nations to establish, among other matters, conventions on practices in the workplace.
Intrinsic reward
A reward given to an employee for achievement of a particular goal, objective or project.
Job analysis
The preparatory stage for writing job descriptions.
Job description
A written description of a job, which includes information regarding the general nature of the work to be performed, specific responsibilities and duties, and the employee characteristics required to perform the job.
Job evaluation
Used for compensation planning purposes, it is the process of comparing a job with other jobs in an organisation to determine an appropriate pay rate for the job.
Kaizen (continuous improvement)
A Japanese concept that requires employees to constantly seek ways of improving the quality of the product or service.
Key result areas
Used to establish standards and objectives, key result areas are the chief tasks of a job identified during the job evaluation process.
KPIs
‘Knowledge, skills and abilities’ – key performance indicators. Tasks that have been agreed between an employee and line manager/HR with an expectation that they will be completed satisfactorily in the time agreed or as an ongoing task.
KSAs
Knowledge, skills and abilities – the personal attributes that a person has to have to perform the job requirements.
Labour force mobility
The willingness of potential employees to travel or move to where work is offered.
Leadership development
Formal and informal training and professional development programmes designed for all management and executive-level employees to assist them in developing the leadership skills and styles required to deal with a variety of situations.
LIFO
In the event of a redundancy situation occurring, the system of ‘last in first out’ is regarded as the most equitable method of choosing those who should be made redundant.
Mediation services
The process of intervention by a specialist in an employment dispute. Provided under the Employment Relations Act 2000.
Mentoring
A one-to-one process between an outside trainer and an employee, whereby the former will ‘train’ the latter. See also coaching.
Minimum wages
The lowest level of earnings of employees set by government.
Motivation
The reason(s) why a person works at a particular job and for a particular organisation. Subject to various theories relating to the way they do things.
Motivational theories
An attempt to explain how people are motivated, in the form of work behaviour and performance.
Multi-skilling
The increase of the skills base of the workforce, usually bringing in new technology.
Multi-tasking
Requires staff to take on a wider range of tasks, usually involving on-the-job training.
Myers-Briggs Type Indicator
A psychological test used to assess an individual’s personality type.
Negotiation
The process of discussion with a view to mutual settlement usually by the means of a conference.
Observation interview
The process of observing employees performing their respective jobs or tasks; used to collect data regarding specific jobs or tasks.
Organisational culture
A pattern that emerges from the interlocking system of the beliefs, values and behavioural expectations of all the members of an organisation.
Orientation
The introduction of employees to their jobs, co-workers and the organisation by providing them with information regarding such items as policies, procedures, company history, goals, culture and work rules. Similar to induction.
Outplacement
A benefit offered by the employer to displaced employees that may consist of such services as job counselling, training and job-finding assistance.
Outsourcing
A contractual agreement between an employer and an external third-party provider whereby the employer transfers responsibility and management for certain HR, benefit or training-related functions or services to the external provider.
Peer appraisal
A performance appraisal strategy whereby an employee is reviewed by his/her peers who have sufficient opportunity to examine the individual’s job performance.
Peripheral labour force
Employees less critical to organisational success, and can be expendable.
Performance management
This is a process of identifying, evaluating and developing the work performance of employees in an organisation, in order that organisational objectives are more effectively achieved and understood by employees.
Performance planning
A total approach to managing people and performance. Involving setting performance aims and expectations for the organisation, departments and individual employees.
Performance indicators
Measure the improvements in throughputs, outputs and outcomes.
Performance-related pay
Links an individual’s performance with their pay usually as an additional bonus or as a way of determining the annual pay increase. Can be individual or on a team basis.
Personal grievance
A complaint brought by one party to an employment contract against another party. See Part 9 of the Employment Relations Act 2000.
Positive discrimination
See affirmative action.
Precedent
See common law.
Probationary Arrangements
Where the parties to an employment agreement agree as part of the agreement that an employee will serve a period of probation or trial after the commencement of the employment.
Recruitment
The process of bringing into an organisation personnel who will possess the appropriate education, qualifications, skills and experience for the post offered.
Redundancy
The act of dismissing an employee when that employee is surplus to the requirements of the organisation.
Replacement charts
A summary in visual form of the numbers of incumbents in each job or family of jobs, the number of current vacancies per job and the projected future vacancies. See succession planning.
Risk management
The use of insurance and other strategies in an effort to minimise an organisation’s exposure to liability in the event a loss or injury occurs.
Stakeholders
The term given to the situation whereby firms have a number of groups, each having their own set of interests, possibly conflicting with each other.
Strategic HRM
The process of aligning human resources more closely to the strategic and operating objectives of the organisation.
Strategic planning
The process of identifying an organisation’s long-term goals and objectives and then determining the best approach for achieving those goals and objectives.
Succession planning
Involves identifying a potential candidate to replace core individual employees either known to be leaving the firm at some point in the future and/or whose sudden departure would pose a risk to the operation of the firm.
Summary dismissal
The act of dismissing personnel immediately, usually because the person has committed some act of gross misconduct.
Suspension
A form of disciplinary action resulting in an employee being sent home without pay for a specified period of time.
Tangible rewards
Rewards that can be physically touched or held (i.e. a gift certificate, gifts in the form of merchandise or a savings bond).
360-degree feedback
An appraisal process whereby an individual is rated on their performance by people who know something about their work. This can include direct reports from peers, managers, customers or clients; in fact, anybody who is credible to the individual and is familiar with their work can be included in the feedback process. The individual usually completes a self-assessment exercise on their performance, which is also used in the process.
Total reward
The complete rewards that employees can receive on an annual basis, including all forms of money, benefits, services and in-kind payments.
Training and development
A process dealing primarily with transferring or obtaining knowledge, attitudes and skills needed to carry out a specific activity or task.
Training needs analysis
A method of analysing how employee skill deficits can be addressed through current or future training and professional development programmes, as well as determining the types of training/development programmes required, and how to prioritise training/development.
Turnover
Describes changes in the workforce resulting from voluntary or involuntary resignations.
Unions
Groups of workers who have formed incorporated associations relating to the type of work that they perform.
Wage drift
The gap between the Collective Agreement rate and the rate actually paid. Evidence of geographical variations in wage levels.
Wellness programme
Programmes such as on-site or subsidised fitness centres, health screenings, smoking cessation, weight reduction/management, health awareness and education, which target keeping employees healthy, thereby lowering costs to the employer associated with absenteeism, lost productivity and increased health insurance claims.
Work–life balance
Having a measure of control over when, where and how an individual’s work, leading to their being able to enjoy an optimal quality of life. Work–life balance is achieved when an individual’s right to a fulfilled life inside and outside paid work is accepted and respected as the norm, to the mutual benefit of the individual, business and society.
Workplace bullying
Persistent, offensive, abusive, intimidating or insulting behaviour or unfair actions directed at another individual, causing the recipient to feel threatened, abused, humiliated or vulnerable.