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Dictionary of Human Resources
Page 1 of 23 Contributed by: Salman Hafeez
Dictionary of Human Resources
Page 2 of 23 Contributed by: Salman Hafeez
Chapter 1: The Strategic Role of Human Resource Management
Key Terms
Management Process The five basic functions of management are: planning,
organizing, staffing, leading, and controlling.
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.
Authority The right to make decisions, to direct the work of others, and to
give orders.
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.
Staff Manager Assist and advise line managers in accomplishing the basic goals. HR
managers are generally staff managers.
Line Authority The authority to direct the activities of the people in his or her own
department.
Implied Authority The authority exerted by virtue of others' knowledge that he or
she has access to top management.
Functional Control The authority exerted by a personnel manager as a coordinator
of personnel activities.
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.
Globalization The tendency of firms to extend their sales or manufacturing to
new markets abroad.
Competitive Advantage Factors that allow an organization to differentiate its product or
service from competitors to increase market share.
Cost Leadership The enterprise aims to become the low-cost leader in an industry.
Differentiation A firm seeks to be unique in its industry along dimensions that are
widely valued by buyers.
Dictionary of Human Resources
Page 3 of 23 Contributed by: Salman Hafeez
Chapter 3: Job Analysis
Key Terms
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 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.
Diary/Log Daily listings made by workers of every activity in which they
engage along with the time each activity takes.
Position Analysis A questionnaire used to collect quantifiable data concerning
the
Questionnaire (PAQ) duties and responsibilities of various jobs.
Department of Labor Standardized method for rating, classifying, and
comparing
Job Analysis virtually every kind of job based on data, people, and things.
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. (page 97)
Dictionary of Human Resources
Page 4 of 23 Contributed by: Salman Hafeez
Chapter 4: Personnel Planning and Recruiting
Key Terms
Trend Analysis Study of a firm's past employment needs over a period of
years to predict future needs.
Ratio Analysis A forecasting technique for determining future staff needs
by using ratios between sales volume and number of
employees needed.
Scatter Plot A graphical method used to help identify the relationship
between two variables.
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.
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.
Personnel Replacement Company records showing present performance and
promotability of inside candidates for the most important
positions.
Charts
Position Replacement A card prepared for each position in a company to show
possible replacement candidates and their qualifications.
Cards
Job Posting Posting notices of job openings on company bulletin
boards is an effective recruiting method.
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.
Conditions
Application Form The form that provides information on education, prior
work record, and skills.
Dictionary of Human Resources
Page 5 of 23 Contributed by: Salman Hafeez
Chapter 5: Employee Testing and Selection
Key Terms
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.
Criterion Validity A type of validity based on showing that scores on the test (predictors)
are related to job performance.
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.
Reliability The characteristic which refers to the consistency of scores obtained by
the same person when retested with the identical or equivalent tests.
Expectancy Chart A graph showing the relationship between test scores and job
performance for a large group of people.
Work Samples Actual job tasks used in testing applicants' performance.
Work Sampling Technique A testing method based on measuring performance on
actual job tasks.
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.
Dictionary of Human Resources
Page 6 of 23 Contributed by: Salman Hafeez
Chapter 6: Interviewing Candidates
Key Terms
Nondirective Interview An unstructured conversational-style interview. The interviewer
pursues points of interest as they come up in response to questions.
Directive InterviewAn interview following a set sequence of questions.
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.
Appraisal Interview A discussion following a performance appraisal in which supervisor
and employee discuss the employee's rating and possible remedial
actions.
Situational Interview A series of job-related questions which focuses on how the
candidate would behave in a given situation.
Job Related Interview A series of job-related questions which focuses on relevant past
job-related behaviors.
Structured Sequential An interview in which the applicant is interviewed sequentially by
Interview several supervisors and each rates the applicant on a standard form.
Panel Interview An interview in which a group of interviewers questions the applicant.
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.
Dictionary of Human Resources
Page 7 of 23 Contributed by: Salman Hafeez
Chapter 7: Training and Developing Employees
Key Terms
Employee Orientation A procedure for providing new employees with basic background
information about the firm.
Training The process of teaching new employees the basic skills they need
to perform their jobs.
Task Analysis A detailed study of a job to identify the skills required so that an
appropriate training program may be instituted.
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.
On-The-Job Training (OJT) Training a person to learn a job while working at it.
Job Instruction Training Listing of each job's basic tasks, along with key points in order to
(JIT) provide step-by-step training for employees.
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.
Vestibule or simulated Training employees on special off-the-job equipment, as in
Learning airplane pilot training, whereby training costs and hazards can be
reduced.
Management Any attempt to improve current or future management
Development performance by imparting knowledge, changing attitudes, or
increasing skills.
Succession Planning A process through which senior-level openings are planned for
and eventually filled.
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.
Action Learning A training technique by which management trainees are allowed
to work full time analyzing and solving problems in other
departments.
Case Study Method A development method in which the manager is presented with a
written description of an organizational problem to diagnose and
solve.
Dictionary of Human Resources
Page 8 of 23 Contributed by: Salman Hafeez
Management Game A development technique in which teams of managers compete
with one another by making computerized decisions regarding
realistic but simulated companies.
Role Playing A training technique in which trainees act out the parts of people
in a realistic management situation.
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.
Controlled Formal methods for testing the effectiveness of a training
Experimentation program, preferably with before-and-after tests and a control
group.
Dictionary of Human Resources
Page 9 of 23 Contributed by: Salman Hafeez
Chapter 8: Managing Organizational Renewal
Key Terms
Strategic Change A change in a company’s strategy, mission and vision.
Cultural Change A change in a company’s shared values and aims.
Structural Change The reorganizing-redesigning of an organization’s
departmentalization, coordination, span of control, reporting
relationships, or centralization of decision making.
Technological Change Modifications to the work methods an organization uses to
accomplish its tasks.
Organizational HR-based techniques aimed at changing employees’ attitudes,
Development Interventions values, and behavior.
Organizational A method aimed at changing attitudes, values, and beliefs of
Development (OD) employees so that employees can improve the organizations.
Sensitivity Training A method for increasing employees’ insights into their own
Behavior by candid discussions in groups led by special trainers.
Team Building Improving the effectiveness of teams such as corporate officers
and division directors through use of consultants, interviews, and
team-building meetings.
Confrontation Meetings A method for clarifying and bringing into the open iner-group
misconceptions and problems so that they can be resolved.
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.
Total Quality Management A type of program aimed at maximizing customer
satisfaction
(TQM) through continuous improvements.
Malcolm Baldridge Award An award created by the U.S. Department of Commerce to
recognize quality efforts of U.S. companies.
Functional Team A quality improvement team composed of volunteers who typically
work together as natural work units.
Cross-Functional Team A quality improvement team formed to address problems that cut
across organizational boundaries.
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.
Dictionary of Human Resources
Page 10 of 23 Contributed by: Salman Hafeez
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.
Business Process The redesign of business processes to achieve improvements in
Reengineering (BPR) such measures of performance as cost, quality, service, and
speed.
Flextime A plan whereby employees build their workday around a core of
midday hours.
Four-Day Workweek An arrangement that allows employees to work four ten-hour days
instead of the more usual five eight-hour days.
Job Sharing A concept that allows two to more people to share a single full-
time job.
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.
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.
Dictionary of Human Resources
Page 11 of 23 Contributed by: Salman Hafeez
Chapter 9: Appraising Performance
Key Terms
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.
Alternation Ranking Ranking employees from best to worst on a particular trait.
Method
Paired Comparison Ranking employees by making a chart of all possible pairs of the
Method employees for each trait and indicating which is the better
Employee of the pair.
Forced Distribution Similar to grading on a curve; predetermined percentages of
Method ratees are placed in various categories.
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.
Behaviorally Anchored An appraisal method that aims at combining the benefits of
Rating Scale (BARS) narrative and quantified ratings by anchoring a quantified scale
with specific narrative examples of good and poor performance.
Management By Involves setting specific measurable goals with each employee
Objectives (MBO) and then periodically reviewing the progress made.
Unclear Performance An appraisal scale that is too open to interpretation; instead,
Standards include descriptive phrases that define each trait and what is
meant by standards like "good" or "unsatisfactory."
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.
Central Tendency A tendency to rate all employees the same way, avoiding the high
and the low ratings.
Strictness / Leniency BiasThe problem that occurs when a supervisor has a tendency to rate
all subordinates either high or low.
Bias The tendency to allow individual differences such as age, race,
and sex to affect the appraisal rates these employees receive.
Appraisal Interviews An interview in which the supervisor and subordinate review the
appraisal and make plans to remedy deficiencies and reinforce
strengths.
Dictionary of Human Resources
Page 12 of 23 Contributed by: Salman Hafeez
Chapter 10: Managing Careers and Fair Treatment
Key Terms
Career Planning and The deliberate process through which a person becomes aware
Development of personal career-related attributes and the lifelong series of
stages that contribute to his or her career fulfillment.
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.
Speak Up! Programs Communications programs that allow employees to register
Questions, concerns, and complaints about work-related matters.
Opinion Surveys Communication devices that use questionnaires to regularly ask
employees their opinions about the company, management, and
work life.
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.
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.
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.
Insubordination Willful disregard or disobedience of the boss's authority or
legitimate orders; criticizing the boss in public.
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.
Termination Interview The interview in which an employee is informed of the fact that he
or she has been dismissed.
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.
Dictionary of Human Resources
Page 13 of 23 Contributed by: Salman Hafeez
Plant Closing Law The Worker Adjustment and Retraining Notification Act, which
requires notifying employees in the event an employer decides to
close its facility.
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.
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.
Voluntary Reduction in An alternative to layoffs in which all employees agree to
Pay Plan 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.
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.
Downsizing Refers to the process of reducing, usually dramatically, the
number of people employed by the firm.
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.
Preretirement Counseling Counseling provided to employees who are about to retire, which
covers matters such as benefits advice, second careers, and so
on.
Dictionary of Human Resources
Page 14 of 23 Contributed by: Salman Hafeez
Chapter 11: Establishing Pay Plans
Key Terms
Employee Compensation All forms of pay or rewards going to employees and arising
from their employment.
Davis-Bacon Act A law passed in 1931 that sets wage rates for laborers employed by
contractors working for the federal government.
Walsh-Healey Public Contract Act
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.
Fair Labor Standards Act
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.
Equal Pay Act of 1963 An amendment to the Fair Labor Standards Act designed to
require equal pay for women doing the same work as men.
Civil Rights Act This law makes it illegal to discriminate in employment because of race,
color, religion, sex, or national origin.
Employee Retirement Income Security Act (ERISA)
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).
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.
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.
Job Evaluation A systematic comparison done in order to determine the worth of one
job relative to another.
Compensable Factor A fundamental, compensable element of a job, such as skills,
effort, responsibility, and working conditions.
Ranking Method The simplest method of job evaluation that involves ranking each job
relative to all other jobs, usually based on overall difficulty.
Dictionary of Human Resources
Page 15 of 23 Contributed by: Salman Hafeez
Classification (Or Grading) A method for categorizing jobs into groups.
Method
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.
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.
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.
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.
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.
Pay Grade A pay grade is comprised of jobs of approximately equal difficulty.
Wage Curve Shows the relationship between the value of the job and the average
wage paid for this job.
Rate Ranges A series of steps or levels within a pay grade, usually based upon years
of service.
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.
Dictionary of Human Resources
Page 16 of 23 Contributed by: Salman Hafeez
Chapter 12: Pay-For-Performance and Financial Incentives
Key Terms
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.
Scientific Management The careful, scientific study of the job for the purpose of boosting
productivity and job satisfaction.
Spot Bonus A spontaneous incentive awarded to individuals for
accomplishments not readily measured by a standard.
Variable Pay Any plan that ties pay to productivity or profitability, usually as
one-time lump payments.
Piecework 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.
Straight Piecework Under this pay system each worker receives a set payment for
each piece produced or processed in a factory or shop.
Plan
Guaranteed Piecework The minimum hourly wage plus an incentive for each piece
produced above a set number of pieces per hour.
Plan
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.
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.
Annual Bonus Plans that are designed to motivate short-term performance of
managers and are tied to company profitability.
Capital Accumulation Long-term incentives most often reserved for senior executives.
Programs Six popular plans include stock options, stock appreciation rights,
performance achievement plans, restricted stock plans, phantom
stock plans, and book value plans.
Stock Option The right to purchase a stated number of shares of a company
stock at today's price at some time in the future.
Dictionary of Human Resources
Page 17 of 23 Contributed by: Salman Hafeez
Merit Pay (Merit Raise) Any salary increase awarded to an employee based on his or her
individual performance.
Profit-Sharing Plan A plan whereby most employees share in the company's profits.
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.
Scanlon Plan An incentive plan developed in 1937 by Joseph Scanlon and
designed to encourage cooperation, involvement, and sharing of
benefits.
Gainsharing Plan An incentive plan that engages employees in a common effort to
achieve productivity objectives and share the gains.
Dictionary of Human Resources
Page 18 of 23 Contributed by: Salman Hafeez
Chapter 13: Benefits and Services
Key Terms
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.
Supplemental Pay Benefits Benefits for time not worked such as unemployment
insurance, vacation and holiday pay and sick pay.
Unemployment InsuranceProvides weekly benefits if a person is unable to work through
some fault other than his or her own.
Sick Leave Provides pay to an employee when he or she is out of work
because of illness.
Severance Pay A one-time payment some employers provide when terminating
an employee.
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.
Worker's Compensation Provides income and medical benefits to work-related accident
victims or their dependents regardless of fault.
Group Life Insurance Provides lower rates for the employer or employee and includes
all employees, including new employees, regardless of health or
physical condition.
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.
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 Amendment to title VII of the Civil Rights Act that prohibits
sex discrimination based on "pregnancy, childbirth, or related
medical conditions." It requires employers to provide benefits -
Dictionary of Human Resources
Page 19 of 23 Contributed by: Salman Hafeez
including sick leave and disability benefits and health and medical
insurance - the same as for any employee not able to work
because of disability.
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.
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.
Defined Benefit Pension Plan A plan that contains a formula for determining retirement
benefits.
Defined Contribution PlanA plan in which the employer's contribution to employee's
retirement or savings funds is specified.
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.
Vesting Provision that money placed in a pension fund cannot be forfeited
for any reason.
Employee Retirement Income Security Act (ERISA)
Signed into law by President Ford in 1974 to require that pension
rights be vested, and protected by a government agency.
Pension Benefits Guarantee Corporation (PBGC)
Established under ERISA to ensure that pensions meet vesting
obligations; also insures pensions should a plan terminate without
sufficient funds to meet its vested obligations.
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.
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 Assistance Program (EAP)
A formal employer program for providing employees with
counseling and/or treatment programs for problems such as
alcoholism, gambling, or stress. (page 495)
Flexible Benefits ProgramIndividualized plans allowed by employers to accommodate
employee preferences for benefits. (page 500)
Dictionary of Human Resources
Page 20 of 23 Contributed by: Salman Hafeez
Chapter 14: Labor Relations and Collective Bargaining
Key Terms
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).
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.)
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.
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.
Norris-LaGuardia Act 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."
National Labor Relations Board (NLRB)
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
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.
Taft-Hartley Act 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.
National emergency strikes Strikes that might "imperil the national health and safety."
Landrum-Griffin Act The law aimed at protecting union members from possible
wrongdoing on the part of their unions.
Dictionary of Human Resources
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Union Salting 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.
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.
Collective Bargaining The process through which representatives of management and
the union meet to negotiate a labor agreement.
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.
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.
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.
Mandatory Bargaining 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.
Arbitration The most definitive type of third-party intervention, in which the
arbitrator usually has the power to determine and dictate the
settlement terms.
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.
Unfair Labor Practice Strike A strike aimed at protesting illegal conduct by the
employer.
Wildcat Strike An unauthorized strike occurring during the term of a contract.
Dictionary of Human Resources
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Sympathy Strike A strike that takes place when one union strikes in support of
another.
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.
Boycott the combined refusal by employees and other interested parties to
buy or use the employer's products.
Lockout A refusal by the employer to provide opportunities to work.
Grievance Any factor involving wages, hours, or conditions of employment
that is used as a complaint against the employer.
Dictionary of Human Resources
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Chapter 15: Employee Safety and Health
Key Terms
Occupational Safety and Health Act
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.
Citations Summons informing employers and employees of the regulations
and standards that have been violated in the workplace.
Unsafe Conditions The mechanical and physical conditions that cause accidents.
Unsafe Acts Behavior tendencies and undesirable attitudes that cause
accidents.
Burnout The total depletion of physical and mental resources caused by
excessive striving to reach an unrealistic work-related goal.

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HR Dictionary

  • 1. Dictionary of Human Resources Page 1 of 23 Contributed by: Salman Hafeez
  • 2. Dictionary of Human Resources Page 2 of 23 Contributed by: Salman Hafeez Chapter 1: The Strategic Role of Human Resource Management Key Terms Management Process The five basic functions of management are: planning, organizing, staffing, leading, and controlling. 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. Authority The right to make decisions, to direct the work of others, and to give orders. 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. Staff Manager Assist and advise line managers in accomplishing the basic goals. HR managers are generally staff managers. Line Authority The authority to direct the activities of the people in his or her own department. Implied Authority The authority exerted by virtue of others' knowledge that he or she has access to top management. Functional Control The authority exerted by a personnel manager as a coordinator of personnel activities. 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. Globalization The tendency of firms to extend their sales or manufacturing to new markets abroad. Competitive Advantage Factors that allow an organization to differentiate its product or service from competitors to increase market share. Cost Leadership The enterprise aims to become the low-cost leader in an industry. Differentiation A firm seeks to be unique in its industry along dimensions that are widely valued by buyers.
  • 3. Dictionary of Human Resources Page 3 of 23 Contributed by: Salman Hafeez Chapter 3: Job Analysis Key Terms 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 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. Diary/Log Daily listings made by workers of every activity in which they engage along with the time each activity takes. Position Analysis A questionnaire used to collect quantifiable data concerning the Questionnaire (PAQ) duties and responsibilities of various jobs. Department of Labor Standardized method for rating, classifying, and comparing Job Analysis virtually every kind of job based on data, people, and things. 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. (page 97)
  • 4. Dictionary of Human Resources Page 4 of 23 Contributed by: Salman Hafeez Chapter 4: Personnel Planning and Recruiting Key Terms Trend Analysis Study of a firm's past employment needs over a period of years to predict future needs. Ratio Analysis A forecasting technique for determining future staff needs by using ratios between sales volume and number of employees needed. Scatter Plot A graphical method used to help identify the relationship between two variables. 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. 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. Personnel Replacement Company records showing present performance and promotability of inside candidates for the most important positions. Charts Position Replacement A card prepared for each position in a company to show possible replacement candidates and their qualifications. Cards Job Posting Posting notices of job openings on company bulletin boards is an effective recruiting method. 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. Conditions Application Form The form that provides information on education, prior work record, and skills.
  • 5. Dictionary of Human Resources Page 5 of 23 Contributed by: Salman Hafeez Chapter 5: Employee Testing and Selection Key Terms 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. Criterion Validity A type of validity based on showing that scores on the test (predictors) are related to job performance. 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. Reliability The characteristic which refers to the consistency of scores obtained by the same person when retested with the identical or equivalent tests. Expectancy Chart A graph showing the relationship between test scores and job performance for a large group of people. Work Samples Actual job tasks used in testing applicants' performance. Work Sampling Technique A testing method based on measuring performance on actual job tasks. 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.
  • 6. Dictionary of Human Resources Page 6 of 23 Contributed by: Salman Hafeez Chapter 6: Interviewing Candidates Key Terms Nondirective Interview An unstructured conversational-style interview. The interviewer pursues points of interest as they come up in response to questions. Directive InterviewAn interview following a set sequence of questions. 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. Appraisal Interview A discussion following a performance appraisal in which supervisor and employee discuss the employee's rating and possible remedial actions. Situational Interview A series of job-related questions which focuses on how the candidate would behave in a given situation. Job Related Interview A series of job-related questions which focuses on relevant past job-related behaviors. Structured Sequential An interview in which the applicant is interviewed sequentially by Interview several supervisors and each rates the applicant on a standard form. Panel Interview An interview in which a group of interviewers questions the applicant. 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.
  • 7. Dictionary of Human Resources Page 7 of 23 Contributed by: Salman Hafeez Chapter 7: Training and Developing Employees Key Terms Employee Orientation A procedure for providing new employees with basic background information about the firm. Training The process of teaching new employees the basic skills they need to perform their jobs. Task Analysis A detailed study of a job to identify the skills required so that an appropriate training program may be instituted. 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. On-The-Job Training (OJT) Training a person to learn a job while working at it. Job Instruction Training Listing of each job's basic tasks, along with key points in order to (JIT) provide step-by-step training for employees. 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. Vestibule or simulated Training employees on special off-the-job equipment, as in Learning airplane pilot training, whereby training costs and hazards can be reduced. Management Any attempt to improve current or future management Development performance by imparting knowledge, changing attitudes, or increasing skills. Succession Planning A process through which senior-level openings are planned for and eventually filled. 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. Action Learning A training technique by which management trainees are allowed to work full time analyzing and solving problems in other departments. Case Study Method A development method in which the manager is presented with a written description of an organizational problem to diagnose and solve.
  • 8. Dictionary of Human Resources Page 8 of 23 Contributed by: Salman Hafeez Management Game A development technique in which teams of managers compete with one another by making computerized decisions regarding realistic but simulated companies. Role Playing A training technique in which trainees act out the parts of people in a realistic management situation. 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. Controlled Formal methods for testing the effectiveness of a training Experimentation program, preferably with before-and-after tests and a control group.
  • 9. Dictionary of Human Resources Page 9 of 23 Contributed by: Salman Hafeez Chapter 8: Managing Organizational Renewal Key Terms Strategic Change A change in a company’s strategy, mission and vision. Cultural Change A change in a company’s shared values and aims. Structural Change The reorganizing-redesigning of an organization’s departmentalization, coordination, span of control, reporting relationships, or centralization of decision making. Technological Change Modifications to the work methods an organization uses to accomplish its tasks. Organizational HR-based techniques aimed at changing employees’ attitudes, Development Interventions values, and behavior. Organizational A method aimed at changing attitudes, values, and beliefs of Development (OD) employees so that employees can improve the organizations. Sensitivity Training A method for increasing employees’ insights into their own Behavior by candid discussions in groups led by special trainers. Team Building Improving the effectiveness of teams such as corporate officers and division directors through use of consultants, interviews, and team-building meetings. Confrontation Meetings A method for clarifying and bringing into the open iner-group misconceptions and problems so that they can be resolved. 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. Total Quality Management A type of program aimed at maximizing customer satisfaction (TQM) through continuous improvements. Malcolm Baldridge Award An award created by the U.S. Department of Commerce to recognize quality efforts of U.S. companies. Functional Team A quality improvement team composed of volunteers who typically work together as natural work units. Cross-Functional Team A quality improvement team formed to address problems that cut across organizational boundaries. 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.
  • 10. Dictionary of Human Resources Page 10 of 23 Contributed by: Salman Hafeez 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. Business Process The redesign of business processes to achieve improvements in Reengineering (BPR) such measures of performance as cost, quality, service, and speed. Flextime A plan whereby employees build their workday around a core of midday hours. Four-Day Workweek An arrangement that allows employees to work four ten-hour days instead of the more usual five eight-hour days. Job Sharing A concept that allows two to more people to share a single full- time job. 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. 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.
  • 11. Dictionary of Human Resources Page 11 of 23 Contributed by: Salman Hafeez Chapter 9: Appraising Performance Key Terms 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. Alternation Ranking Ranking employees from best to worst on a particular trait. Method Paired Comparison Ranking employees by making a chart of all possible pairs of the Method employees for each trait and indicating which is the better Employee of the pair. Forced Distribution Similar to grading on a curve; predetermined percentages of Method ratees are placed in various categories. 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. Behaviorally Anchored An appraisal method that aims at combining the benefits of Rating Scale (BARS) narrative and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance. Management By Involves setting specific measurable goals with each employee Objectives (MBO) and then periodically reviewing the progress made. Unclear Performance An appraisal scale that is too open to interpretation; instead, Standards include descriptive phrases that define each trait and what is meant by standards like "good" or "unsatisfactory." 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. Central Tendency A tendency to rate all employees the same way, avoiding the high and the low ratings. Strictness / Leniency BiasThe problem that occurs when a supervisor has a tendency to rate all subordinates either high or low. Bias The tendency to allow individual differences such as age, race, and sex to affect the appraisal rates these employees receive. Appraisal Interviews An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.
  • 12. Dictionary of Human Resources Page 12 of 23 Contributed by: Salman Hafeez Chapter 10: Managing Careers and Fair Treatment Key Terms Career Planning and The deliberate process through which a person becomes aware Development of personal career-related attributes and the lifelong series of stages that contribute to his or her career fulfillment. 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. Speak Up! Programs Communications programs that allow employees to register Questions, concerns, and complaints about work-related matters. Opinion Surveys Communication devices that use questionnaires to regularly ask employees their opinions about the company, management, and work life. 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. 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. 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. Insubordination Willful disregard or disobedience of the boss's authority or legitimate orders; criticizing the boss in public. 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. Termination Interview The interview in which an employee is informed of the fact that he or she has been dismissed. 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.
  • 13. Dictionary of Human Resources Page 13 of 23 Contributed by: Salman Hafeez Plant Closing Law The Worker Adjustment and Retraining Notification Act, which requires notifying employees in the event an employer decides to close its facility. 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. 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. Voluntary Reduction in An alternative to layoffs in which all employees agree to Pay Plan 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. 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. Downsizing Refers to the process of reducing, usually dramatically, the number of people employed by the firm. 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. Preretirement Counseling Counseling provided to employees who are about to retire, which covers matters such as benefits advice, second careers, and so on.
  • 14. Dictionary of Human Resources Page 14 of 23 Contributed by: Salman Hafeez Chapter 11: Establishing Pay Plans Key Terms Employee Compensation All forms of pay or rewards going to employees and arising from their employment. Davis-Bacon Act A law passed in 1931 that sets wage rates for laborers employed by contractors working for the federal government. Walsh-Healey Public Contract Act 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. Fair Labor Standards Act 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. Equal Pay Act of 1963 An amendment to the Fair Labor Standards Act designed to require equal pay for women doing the same work as men. Civil Rights Act This law makes it illegal to discriminate in employment because of race, color, religion, sex, or national origin. Employee Retirement Income Security Act (ERISA) 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). 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. 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. Job Evaluation A systematic comparison done in order to determine the worth of one job relative to another. Compensable Factor A fundamental, compensable element of a job, such as skills, effort, responsibility, and working conditions. Ranking Method The simplest method of job evaluation that involves ranking each job relative to all other jobs, usually based on overall difficulty.
  • 15. Dictionary of Human Resources Page 15 of 23 Contributed by: Salman Hafeez Classification (Or Grading) A method for categorizing jobs into groups. Method 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. 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. 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. 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. 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. Pay Grade A pay grade is comprised of jobs of approximately equal difficulty. Wage Curve Shows the relationship between the value of the job and the average wage paid for this job. Rate Ranges A series of steps or levels within a pay grade, usually based upon years of service. 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.
  • 16. Dictionary of Human Resources Page 16 of 23 Contributed by: Salman Hafeez Chapter 12: Pay-For-Performance and Financial Incentives Key Terms 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. Scientific Management The careful, scientific study of the job for the purpose of boosting productivity and job satisfaction. Spot Bonus A spontaneous incentive awarded to individuals for accomplishments not readily measured by a standard. Variable Pay Any plan that ties pay to productivity or profitability, usually as one-time lump payments. Piecework 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. Straight Piecework Under this pay system each worker receives a set payment for each piece produced or processed in a factory or shop. Plan Guaranteed Piecework The minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour. Plan 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. 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. Annual Bonus Plans that are designed to motivate short-term performance of managers and are tied to company profitability. Capital Accumulation Long-term incentives most often reserved for senior executives. Programs Six popular plans include stock options, stock appreciation rights, performance achievement plans, restricted stock plans, phantom stock plans, and book value plans. Stock Option The right to purchase a stated number of shares of a company stock at today's price at some time in the future.
  • 17. Dictionary of Human Resources Page 17 of 23 Contributed by: Salman Hafeez Merit Pay (Merit Raise) Any salary increase awarded to an employee based on his or her individual performance. Profit-Sharing Plan A plan whereby most employees share in the company's profits. 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. Scanlon Plan An incentive plan developed in 1937 by Joseph Scanlon and designed to encourage cooperation, involvement, and sharing of benefits. Gainsharing Plan An incentive plan that engages employees in a common effort to achieve productivity objectives and share the gains.
  • 18. Dictionary of Human Resources Page 18 of 23 Contributed by: Salman Hafeez Chapter 13: Benefits and Services Key Terms 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. Supplemental Pay Benefits Benefits for time not worked such as unemployment insurance, vacation and holiday pay and sick pay. Unemployment InsuranceProvides weekly benefits if a person is unable to work through some fault other than his or her own. Sick Leave Provides pay to an employee when he or she is out of work because of illness. Severance Pay A one-time payment some employers provide when terminating an employee. 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. Worker's Compensation Provides income and medical benefits to work-related accident victims or their dependents regardless of fault. Group Life Insurance Provides lower rates for the employer or employee and includes all employees, including new employees, regardless of health or physical condition. 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. 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 Amendment to title VII of the Civil Rights Act that prohibits sex discrimination based on "pregnancy, childbirth, or related medical conditions." It requires employers to provide benefits -
  • 19. Dictionary of Human Resources Page 19 of 23 Contributed by: Salman Hafeez including sick leave and disability benefits and health and medical insurance - the same as for any employee not able to work because of disability. 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. 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. Defined Benefit Pension Plan A plan that contains a formula for determining retirement benefits. Defined Contribution PlanA plan in which the employer's contribution to employee's retirement or savings funds is specified. 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. Vesting Provision that money placed in a pension fund cannot be forfeited for any reason. Employee Retirement Income Security Act (ERISA) Signed into law by President Ford in 1974 to require that pension rights be vested, and protected by a government agency. Pension Benefits Guarantee Corporation (PBGC) Established under ERISA to ensure that pensions meet vesting obligations; also insures pensions should a plan terminate without sufficient funds to meet its vested obligations. 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. 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 Assistance Program (EAP) A formal employer program for providing employees with counseling and/or treatment programs for problems such as alcoholism, gambling, or stress. (page 495) Flexible Benefits ProgramIndividualized plans allowed by employers to accommodate employee preferences for benefits. (page 500)
  • 20. Dictionary of Human Resources Page 20 of 23 Contributed by: Salman Hafeez Chapter 14: Labor Relations and Collective Bargaining Key Terms 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). 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.) 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. 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. Norris-LaGuardia Act 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." National Labor Relations Board (NLRB) 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 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. Taft-Hartley Act 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. National emergency strikes Strikes that might "imperil the national health and safety." Landrum-Griffin Act The law aimed at protecting union members from possible wrongdoing on the part of their unions.
  • 21. Dictionary of Human Resources Page 21 of 23 Contributed by: Salman Hafeez Union Salting 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. 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. Collective Bargaining The process through which representatives of management and the union meet to negotiate a labor agreement. 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. 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. 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. Mandatory Bargaining 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. Arbitration The most definitive type of third-party intervention, in which the arbitrator usually has the power to determine and dictate the settlement terms. 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. Unfair Labor Practice Strike A strike aimed at protesting illegal conduct by the employer. Wildcat Strike An unauthorized strike occurring during the term of a contract.
  • 22. Dictionary of Human Resources Page 22 of 23 Contributed by: Salman Hafeez Sympathy Strike A strike that takes place when one union strikes in support of another. 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. Boycott the combined refusal by employees and other interested parties to buy or use the employer's products. Lockout A refusal by the employer to provide opportunities to work. Grievance Any factor involving wages, hours, or conditions of employment that is used as a complaint against the employer.
  • 23. Dictionary of Human Resources Page 23 of 23 Contributed by: Salman Hafeez Chapter 15: Employee Safety and Health Key Terms Occupational Safety and Health Act 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. Citations Summons informing employers and employees of the regulations and standards that have been violated in the workplace. Unsafe Conditions The mechanical and physical conditions that cause accidents. Unsafe Acts Behavior tendencies and undesirable attitudes that cause accidents. Burnout The total depletion of physical and mental resources caused by excessive striving to reach an unrealistic work-related goal.