IMPORTANT MBA HR TERMS

MBA HR Absolute ratings A rating method where the rater assigns a speci ic !alue on a i"ed scale to the beha!ior or per ormance o an indi!idual instead o assigning ratings based on comparisons between other indi!iduals# A irmati!e action Also $ Positi!e discrimination# %arried out on behal o women and disad!antaged groups and members o such groups are placed in dominant positions# Appraisal See Per ormance planning# Attrition A term used to describe !oluntar& and in!oluntar& terminations' deaths' and emplo&ee retirements that result in a reduction to the emplo&er(s ph&sical wor) orce# Autocratic leadership *eader determines polic& o the organi+ation' instructs members what to do,ma)e' sub-ecti!e in approach' aloo and impersonal# Balanced Scorecard A popular strategic management concept de!eloped in the earl& .//01s b& 2rs# Robert 3aplan and 2a!id Norton' the balanced scorecard is a management and measurement s&stem which enables organi+ations to clari & their !ision and strateg& and translate them into action# The goal o the balanced scorecard is to tie business per ormance to organi+ational strateg& b& measuring results in our areas$ inancial per ormance' customer )nowledge' internal business processes' and learning and growth# Beha!iorall& anchored rating scale 4BARS5 An appraisal that re6uires raters list important dimensions o a particular -ob and collect in ormation regarding the critical beha!iors that distinguish between success ul and unsuccess ul per ormance# These critical beha!iors are then categori+ed and appointed a numerical !alue which is used as the basis or rating per ormance# Beha!ioral based inter!iew An inter!iew techni6ue which ocuses on a candidates past e"periences' beha!iors' )nowledge' s)ills and abilities b& as)ing the candidate to pro!ide speci ic e"amples o when the& ha!e demonstrated certain beha!iors or s)ills as a means o predicting uture beha!ior and per ormance#

Beha!ioral competenc& The beha!ior o the emplo&ee which is the sub-ect o measurement and appraisal in terms o whether or not the beha!iors shown b& an emplo&ee are those identi ied b& -ob anal&sis,competenc& pro iling as those contributing to team and,or organi+ational success# Benchmar)ing A techni6ue using 6uantitati!e or 6ualitati!e data to ma)e comparisons between di erent organi+ations or di erent sections o the organi+ations# Berea!ement lea!e Paid da&s o ollowing the death o an emplo&ee(s spouse' parent' child grandparent or in7law so that the emplo&ee

ma& attend uneral proceedings' etc# Branding The process o identi &ing and di erentiating an organi+ation(s products' processes or ser!ices rom another organi+ation b& gi!ing it a name' phrase or other mar)# Broadbanding A pa& structure that consolidates a large number o narrower pa& grades into ewer broad bands with wider salar& ranges# Bumping The practice o allowing more senior le!el emplo&ees whose positions ha!e been slotted or elimination or downsi+ing the option o accepting an alternati!e position within the organi+ation' or which the& ma& be 6uali ied to per orm and which is currentl& occupied b& another emplo&ee with less seniorit&# %hange management The deliberate e ort o an organi+ation to anticipate change and to manage its introduction' implementation' and conse6uences# %lean Slate The %riminal Records 4%lean Slate5 Act 8009 establishes a clean slate scheme to limit the e ect o an indi!idual(s con!ictions in most circumstances 4sub-ect to certain e"ceptions set out in Section ./5 i the indi!idual satis ies the rele!ant eligibilit& criteria# %oaching A one7to7one process between a manager and subordinate' whereb& the ormer will :train( the latter# See also Mentoring#

%ollecti!e Bargaining The process b& which ;an< emplo&er;s< will negotiate emplo&ment contracts with ;a< union;s<# %ompetenc&7based pa& %ompetenc& based pa& is a compensation s&stem that recogni+es emplo&ees or the depth' breadth' and t&pes o s)ills the& obtain and appl& in their wor)# Also )nown as s)ill based and )nowledge based pa&# %ompetencies:an underl&ing characteristic o a person( :moti!e' trait' s)ill' aspect o one(s sel 7image or social role' or a bod& o )nowledge(# %ompetiti!e ad!antage:People are the source o competiti!e ad!antage(# Other s&stems in an organi+ation can be copied but not the people in the organi+ation# %on identialit& agreement An agreement restricting an emplo&ee rom disclosing con idential or proprietar& in ormation# %onstructi!e dismissal .# %oercion b& threats to act or promises to re rain and includes a resignation gi!en as an alternati!e to be dismissed# 8# A breach o dut& b& the emplo&er leading a wor)er to resign# %ontingent wor)ers Emplo&ees who ma& be$ casual labor' part7timers' reelancers' subcontractors' independent pro essionals and consultants# %ontract or ser!ices An agreement with an independent contractor# %ontract o ser!ice An emplo&ment agreement# %ore competencies The s)ills' )nowledge and abilities which emplo&ees must possess in order to success ull& per orm -ob unctions which are essential to business operations# %ore *abor =orce A small group o permanent wor)ers' or e"ample' strategists' planners# %orporate mission The aims and ob-ecti!es o an organi+ation# %ost leadership A strateg& o becoming the lowest7cost producer in its industr&#

%&clical unemplo&ment A orm o unemplo&ment > rises in times o economic recession and alls in times o prosperit&# Now shows signs o being able to withstand increased prosperit&# 2ecision Tree Model One o the %ontingenc& theories o leadership > de!eloped b& ?room and @ettor 4./AB5# 2eregulation The remo!al o entities such as inancial mar)ets' road and transport rom go!ernmental control# 2istance *earning The process o deli!ering educational or instructional programs to locations awa& rom a classroom or site to another location b& !ar&ing technolog& such as !ideo or audio7con erencing' computers' web7based applications or other multimedia communications# 2isciplinar& procedure A procedure carried out in the wor)place in the e!ent o an emplo&ee committing some act contrar& to terms o the emplo&ment agreement# I the act is regarded as Cross Misconduct this ma& lead to Summar& 2ismissal# 2iscrimination The a!oring o one group o people to the detriment o others# 2istributi!e bargaining Related to the process o Negotiation# 3nown also as %ompetiti!e bargaining > The parties are concerned with their respecti!e shares o the bene its a!ailable and compete and con lict with each other until one side wins an increased share at the e"pense o the other# 2ual *abor Mar)ets organi+ations will operate with a small %ore *abor =orce and a Peripheral *abor =orce 2ue diligence A critical component o mergers and ac6uisitions' it is the process b& in!estigation and e!aluation is conducted to e"amine the details o a particular in!estment or purchase b& obtaining su icient and accurate in ormation or documents which ma& in luence the outcome o the transaction# Emotional Intelligence 2escribes the mental abilit& an indi!idual possess enabling him,her to be sensiti!e and understanding to the emotions o others as well as being able to manage their own emotions and impulses#

Emplo&ee Relations A broad term used to re er to the general management and planning o acti!ities related to de!eloping' maintaining' and impro!ing emplo&ee relationships b& communicating with emplo&ees' processing grie!ances,disputes' etc# Emplo&ee retention organi+ational policies and practices designed to meet the di!erse needs o emplo&ees' and create an en!ironment that encourages emplo&ees to remain emplo&ed# Empowerment The process o enabling or authori+ing an indi!idual to thin)' beha!e' ta)e action' and control wor) and decision7 ma)ing in autonomous wa&s# E6uit& theor& Based on the notion that people are moti!ated b& a desire or airness' that is' to be treated airl& and will compare their own e orts and the rewards o others in the organi+ation with a !iew to -udging the airness o their treatment# E"it Inter!iew An inter!iew between a member o sta o the organi+ation that an emplo&ee is lea!ing to ascertain the reasons or the emplo&ee lea!ing the organi+ation# Should not be carried out b& emplo&ee(s immediate superior# Dsed or possible changes# =i"ed Term Emplo&ment An emplo&ee and an emplo&er ma& agree that the emplo&ment o the emplo&ee will end at the close o a speci ied date or period or on the occurrence o a speci ied e!ent or at the conclusion o a speci ied pro-ect# =orced Ran)ing =orced ran)ing s&stems direct managers to e!aluate their emplo&ees( per ormance against other emplo&ees' rather than the more common 4and o ten grade in lated5 measure o e!aluating per ormance against pre7determined standards# The result o such a process is o ten brutall& blunt$ The top 80 percent o per ormers are ampl& rewarded' and the bottom .0 percent are shown the door# =reedom o association The right to belong to a union# As protected b& the Human Rights Act .//B# =unctional -ob anal&sis The preparation re6uired or the construction o a -ob description# It is necessar& to collect data on the -ob to be ad!ertised#

Coal Setting The process o setting and assigning a set o speci ic and attainable goals to be met b& an indi!idual' group or organi+ation# Cood aith bargaining A dut& under Section 9 o the Emplo&ment Relations Act 8000 to conduct negotiations where two parties meet and con er at reasonable times with open minds and the intention o reaching an agreement# Crie!ance A complaint brought b& one part& to an emplo&ment contract against another part&# Croup d&namics The social manner in which people interact with each other within a group# Cross misconduct An act committed b& an& personnel li)el& to lead to Summar& 2ismissal# E"amples ma& be$ HR Audit A method b& which human resources e ecti!eness can be assessed# %an be carried out internall& or HR audit s&stems are a!ailable# Hawthorne E ect A term produced as a result o an e"periment conducted b& Elton Ma&o whereb& he concluded that e"pressing concern or emplo&ees and treating them in a manner which ul ills their basic human needs and wants will ultimatel& result in better per ormance# Hierarch& o needs A ps&cholog& theor& ascribed to Abraham H# Maslow in which he proposed that people will constantl& see) to ha!e their basic needs 4sleep' ood' water' shelter' etc#5 ul illed and that such needs ultimatel& determine beha!ior Human %apital The collecti!e )nowledge' s)ills and abilities o an organi+ation(s emplo&ees# Incenti!e pa& Additional compensation used to moti!ate and to reward emplo&ees or e"ceeding per ormance or producti!it& goals# Independent contractor A person who wor)s or him,hersel but has a contract or ser!ices with another person,organi+ation# Indi!idual emplo&ment agreement The legal relationship between an emplo&ee and emplo&er# See Part E o the Emplo&ment Relations Act 8000

Induction The process o introducing a new emplo&ee into the organi+ation# Industrial relations The stud& o theories and practices in the wor)place relationship# Intangible rewards Non7monetar& re7en orcers such as praise gi!en to an emplo&ee in recognition o a -ob well done' or a particular achie!ement# ISO /000 2e!eloped b& the International organi+ation or Standardi+ation 4ISO5' it is a set o standards or 6ualit& management s&stems that is accepted around the world# organi+ations that con orm to these standards can recei!e ISO /000 certi ication# The standard intended or 6ualit& management s&stem assessment and registration is ISO /00.# The standards appl& uni orml& to organi+ations o an& si+e or description# Fob anal&sis The preparator& stage or writing -ob descriptions# Fob 2escription A written description o a -ob which includes in ormation regarding the general nature o the wor) to be per ormed' speci ic responsibilities and duties' and the emplo&ee characteristics re6uired to per orm the -ob# Fob e!aluation Dsed or compensation planning purposes' it is the process o comparing a -ob with other -obs in an organi+ation to determine an appropriate pa& rate or the -ob# 3PI(s: 3nowledge' S)ills and Abilities( > 3e& Per ormance Indicators# Tas)s that ha!e been agreed between an emplo&ee and line manager,HR with an e"pectation that the& will be completed satis actoril& in the time agreed or as an ongoing tas)# 3SAs 3nowledge' s)ills and abilities > the personal attributes that a person has to ha!e to per orm the -ob re6uirements# *abor Mar)et A geographical or occupational area in which actors o suppl& and demand interact# *abor orce participation A rate at which the number o people in the labor orce is di!ided b& the number o people o wor)ing age " .00#

*eadership 2e!elopment =ormal and in ormal training and pro essional de!elopment programs designed or all management and e"ecuti!e le!el emplo&ees to assist them in de!eloping the leadership s)ills and st&les re6uired to deal with a !ariet& o situations# *egislation *aw emanating rom Parliament in the orm o Acts# *I=O In the e!ent o a redundanc& situation occurring' the s&stem o :last in irst out( is regarded as the most e6uitable method o choosing those who should be made redundant# *ump sum pa&ment A i"ed negotiated pa&ment which is not t&picall& included in an emplo&ee(s annual salar&# O ten times gi!en in lieu o pa& increases# Matri" organi+ation An organi+ational structure where emplo&ees report to more then one manager or super!isor# Mediation Ser!ices The process o inter!ention b& a specialist in an emplo&ment dispute# Pro!ided under the Emplo&ment Relations Act 8000# Mentoring A one7to7one process between an outside trainer and an emplo&ee' whereb& the ormer will :train( the latter# See also %oaching# Minimum wages The lowest le!el o earnings o emplo&ees set b& Co!ernment# Mission Statement A statement illustrating who the compan& is' what the compan& does' and where the compan& is headed# Moti!ation The reason4s5 wh& a person wor)s at a particular -ob and or a particular organi+ation# Sub-ect to !arious theories relating to the wa& the& do things# Moti!ational theories An attempt to e"plain how people are moti!ated' in the orm o wor) beha!ior and per ormance# M&ers7Briggs T&pe Indicator A ps&chological test used to assess an indi!iduals personalit& t&pe#

Negotiation The process o discussion with a !iew to mutual settlement usuall& b& the means o a con erence# Nepotism =a!oritism shown to relati!es b& indi!iduals in a position o authorit& such as %EO(s' managers or super!isors# Obser!ation inter!iew The process o obser!ing emplo&ees while per orming their respecti!e -obs or tas)s used to collect data regarding speci ic -obs or tas)s# Onboarding A relati!el& new term' it is more ar reaching than historical orientation programs It lin)s new emplo&ees with team members !er& earl& in the emplo&ment process and continuing a ter the traditional orientation program ends# OSH Occupational health and sa et& > the law relating to the health and sa et& o personnel at wor)# organi+ational %ulture A pattern that emerges rom the interloc)ing s&stem o the belie s' !alues and Beha!ioral e"pectations o all the members o an organi+ation# Orientation The introduction o emplo&ees to their -obs' co7wor)ers' and the organi+ation b& pro!iding them with in ormation regarding such items as policies' procedures' compan& histor&' goals' culture' and wor) rules# Similar to Induction# Outplacement A bene it o ered b& the emplo&er to displaced emplo&ees which ma& consist o such ser!ices as -ob counseling' training' and -ob7 inding assistance# Outsourcing A contractual agreement between an emplo&er and an e"ternal third part& pro!ider whereb& the emplo&er trans ers responsibilit& and management or certain HR' bene it or training related unctions or ser!ices to the e"ternal pro!ider# Pareto chart A bar graph used to ran) in order o importance in ormation such as causes or reasons or speci ic problems so that measures or process impro!ement can be established# Peer appraisal A per ormance appraisal strateg& whereb& an emplo&ee is re!iewed b& his,her peers who ha!e su icient opportunit& to e"amine the indi!idual(s -ob per ormance#

Per ormance Management This is a process o identi &ing' e!aluating and de!eloping the wor) per ormance o emplo&ees in an organi+ation' in order that organi+ational ob-ecti!es are more e ecti!el& achie!ed and understood b& emplo&ees# Per ormance Impro!ement Per ormance Impro!ement Plan when &ou ha!e identi ied a per ormance problem and are loo)ing or wa&s to impro!e the per ormance o an emplo&ee# The Per ormance Impro!ement Plan pla&s an integral role in correcting per ormance discrepancies# It is a tool to monitor and measure the de icient wor) products' processes and,or beha!iors o a particular emplo&ee in an e ort to impro!e per ormance or modi & beha!ior# Per ormance planning A total approach to managing people and per ormance# In!ol!ing setting per ormance aims and e"pectations or the organi+ation' departments and indi!iduals emplo&ees# Personal grie!ance A complaint brought b& one part& to an emplo&ment contract against another part&# See Part / o the Emplo&ment Relations Act 8000# Probationar& Arrangements Ghere the parties to an emplo&ment agreement agree as part o the agreement that an emplo&ee will ser!e a period o probation or trial a ter the commencement o the emplo&ment# See Section EE Emplo&ment Relations Act 8000 Hualit& management The process or s&stem o ensuring that a product or ser!ice should do what the user needs or wants and has a right to e"pect# There are i!e dimensions to 6ualit&' design' con ormance' a!ailabilit&' sa et& and ield use# Random Testing 2rug and alcohol tests administered b& an emplo&er which selects emplo&ees to be tested on a random basis# Recruitment The process o bringing into an organi+ation personnel who will possess the appropriate education' 6uali ications' s)ills and e"perience or the post o ered# Redundanc& The act o dismissing an emplo&ee when that emplo&ee is surplus to the re6uirements o the organi+ation# Replacement charts A summari+ation in !isual orm the numbers o incumbents in each -ob or amil& o -obs' the number o current !acancies per -ob and the pro-ected uture !acancies# See Succession planning#

Re6uest or proposal 4R=P5 A document an organi+ation sends to a !endor in!iting the !endor to submit a bid or a product or' ser!ice# Restricti!e co!enant A contract clause re6uiring e"ecuti!es or other highl& s)illed emplo&ees to re rain rom see)ing and obtaining emplo&ment with competitor organi+ations in a speci ic geographical region and or a speci ied period o time# Return on in!estment 4ROI5 A ratio o the bene it or pro it deri!ed rom a speci ic in!estment compared to the cost o the in!estment itsel # Right to manage The :right( o management to ma)e decisions and to run an organi+ation without inter erence rom e"ternal or internal orces# Ris) management The use o insurance and other strategies in an e ort to minimi+e an organi+ation(s e"posure to liabilit& in the e!ent a loss or in-ur& occurs# Strategic HRM The process o aligning human resources more closel& to the strategic and operating ob-ecti!es o the organi+ation# Strategic Planning The process o identi &ing an organi+ation(s long7term goals and ob-ecti!es and then determining the best approach or achie!ing those goals and ob-ecti!es# Succession planning In!ol!ing identi &ing a potential candidate to replace core indi!idual emplo&ees either )nown t be lea!ing the irm at some point in the uture and,or whose sudden departure would pose a ris) to the operation o the irm# Summar& dismissal The act o dismissing personnel immediatel&' usuall& because the person has committed some act o Cross Misconduct# Suspension A orm o disciplinar& action resulting in an emplo&ee being sent home without pa& or a speci ied period o time# Talent Management Talent Management' o ten times re erred to as Human %apital Management' is the process recruiting' managing' assessing' de!eloping and maintaining an organi+ation(s most important resourceIit(s peopleJ

Tangible rewards Rewards which can be ph&sicall& touched or held 4i#e# a gi t certi icate' gi ts in the orm o merchandise' or a sa!ings bond#5 BE07degree eedbac) An appraisal process whereb& an indi!idual is rated on their per ormance b& people who )now something about their wor)# This can include direct reports' peers' managers' customers or clientsK in act an&bod& who is credible to the indi!idual and is amiliar with their wor) can be included in the eedbac) process# The indi!idual usuall& completes a sel 7assessment e"ercise on their per ormance' which is also used in the process# Total Remuneration The complete pa& pac)age awarded emplo&ees on an annual basis' including all orms o mone&' bene its' ser!ices' and in7)ind pa&ments# Training and de!elopment A process dealing primaril& with trans erring or obtaining )nowledge' attitudes and s)ills needed to carr& out a speci ic acti!it& or tas)# Training Needs Anal&sis A method o anal&+ing how emplo&ee s)ill de icits can be addressed through current or uture training and pro essional de!elopment programs' as well as determining the t&pes o training,de!elopment programs re6uired' and how to prioriti+e training,de!elopment# Turno!er 2escribes changes in the wor) orce resulting rom !oluntar& or in!oluntar& resignations# Dnions Croups o wor)ers who ha!e ormed incorporated associations relating to the t&pe o wor) that the& per orm# Dn-usti iable dismissal The act o terminating an emplo&ee(s emplo&ment agreement or a reason that the Emplo&ment Relations Authorit& or Emplo&ment %ourt regards as un-usti iable# Gage cur!e 2epicts pa& rates currentl& being paid or each -ob within a pa& grade in relation with the ran)ings awarded to each -ob during the -ob e!aluation process# Gage dri t The gap between the %ollecti!e Agreement rate and the rate actuall& paid# E!idence o geographical !ariations in wage le!els#

Ghistle blower Ghistle blower protection is contained in the Protected 2isclosures Act 8000# The Act pro!ides protection to emplo&ees against retaliation or reporting illegal acts o emplo&ers# An emplo&er ma& not right ull& retaliate in an& wa&' such as discharging' demoting' suspending or harassing the whistle blower# Emplo&er retaliation o an& )ind ma& result in the whistle blower bringing a personal grie!ance against the emplo&er# Gor)7li e Balance Ha!ing a measure o control o!er when' where and how an indi!iduals wor)s' leading to their being able to en-o& an optimal 6ualit& o li e# Gor)7li e balance is achie!ed when an indi!idual(s right to a ul illed li e inside and outside paid wor) is accepted and respected as the norm' to the mutual bene it o the indi!idual' business and societ&#