BA 152

Chapter 10

Involuntary Turnover
- Turnover initiated by the organization (often among people who would prefer to stay)

Voluntary Turnover
- Turnover initiated by employees (often whom the company would prefer to stay)

Employment-at-Will Doctrine
- The doctrine that, in the absence of a specific contract, either an employer or employee could
sever the employee relationship at any time

Outcome Fairness
- The judgment that people make with respect to the outcomes received relative to the outcomes
received by other people with whom they identify

Procedural Justice
- A concept of justice focusing on the methods used to determine the outcomes received

Interactional Justice
- A concept of justice referring to the interpersonal nature of how the outcomes were implemented

Alternative Dispute Resolution

- A method of resolving disputes that does not rely on the legal system. Often proceeds through
the four stages of open door policy, peer review, mediation, and arbitration

Employee Assistance Programs

- Employer programs that attempt to ameliorate problems encountered by workers who are drug
dependent, alcoholic, or psychologically troubled

Outplacement Counseling
- Counseling to help displaced employees manage the transition from one job to another

Progression of Withdrawal
- Theory that dissatisfied individuals enact a set of behaviors in succession to avoid their work
situation

Whistle-blowing
- Making grievances public by going to the media or government

Job involvement
- The degree to which people identify themselves with their jobs

Organizational Commitment
- The degree to which an employee identifies with the organization and is willing to put forth effort
on its behalf

Job Satisfaction
- A pleasurable feeling that results from the one’s job fulfills or allows for the fulfillment of one’s
important job values

Frame of Reference
- A standard point that serves as a comparison for other points and thus provides meaning
Negative Affectivity
- A dispositional dimension that reflects pervasive individual differences in satisfaction with any
and all aspects of life

Job Rotation
- The process of systematically moving a single individual from one job to another over the course
of time. The job assignments may be in various functional areas of the company or movement
may be between jobs in a single functional area or department.

Prosocial Motivation
- The degree to which people are energized to do their jobs because it helps other people

Chapter 11

Pay structure
- The relative pay of different jobs (job structure) and how much they are paid (pay level)

Pay Level
- The average pay, including wages, salaries, and bonuses, of jobs in an organization

Job Structure
- The relative pay of jobs in an organization

Efficiency Wage Theory

- A theory stating that wages influence worker productivity

Benchmarking
- Comparing an organization’s practices against those of the competition

Rate Ranges
- Different employees in the same job may have different pay rates

Key jobs
- Benchmark jobs, used in pay surveys that have relatively stable content and are common to
many organizations

Nonkey Jobs
- Jobs that are unique to organizations that cannot be directly valued or compared through the
use of market surveys

Job Evaluation
- An administrative procedure used to measure internal job worth

Compensable Factors
- The characteristics of jobs that an organization values and chooses to pay for

Pay Policy Line

- Equation that describes the relationship between a job’s pay and its job evaluation points

Pay Grades
- Jobs of similar worth or content grouped together for pay administration purposes

Range Spread
- The distance between the minimum and maximum amounts in a pay grade

Compa-Ratio
- An index of the correspondence between actual and intended pay

Delayering
- Reducing the number of job levels within an organization

Skill-Based Pay
- Pay based on the skills employees acquire and capable of using

Comparable Worth
- A public policy that advocates remedies for any undervaluation of women’s jobs (also called pay
equity)

Fair Labor Standards Act (FLSA)

- The 1938 law that established the minimum wage and overtime pay

Minimum Wage
- The lowest amount that employers are legally allowed to pay; the 1990 amendment of the Fair
Labor Standards Act permits a sub-minimum wage to workers under the age of 20 for a period of
up to 90 days

Exempt
- Employees who are not covered by the Fair Labor Standards Act. Exempt employees are not
eligible for overtime pay

Chapter 12

Incentive Effect
- The effect a pay plan has on the behaviors of current employees

Expectancy Theory
- The theory that says motivation is a function of valence, instrumentality, and expectancy.

Principal
- In agency theory, a person (e.g., an owner) who seeks to direct another person’s behavior

Agent
- In agency theory, a person (e.g., a manager) who is expected to act on behalf of a principal
(e.g., an owner).

Sorting Effect
- The effect a pay plan has on the composition of the current workforce (they types of employees
attracted and retained).

Merit Pay
- Traditional form of pay in which base pay is increased permanently.

Merit Bonus
- Merit pay paid in the form of a bonus, instead of a salary increase

Merit Increase Grid

- A grid that combines an employee’s performance rating with the employee’s position in a pay
range to determine the size and frequency of his or her pay increases

Profit Sharing
- A compensation plan in which payments are based on a measure of organization performance
(profits) and do not become part of the employees’ base salary
Stock Options
- An employee ownership plan that gives employees the opportunity to buy the company’s stock
at a previously fixed price

Employee Stock Ownership Plan (ESOP)

- An employee ownership plan that gives employers certain tax and financial advantages when
stock is granted to employees

Gainsharing
- A form of compensation based on group or plant performance (rather than organizationwide
profits) that does not become part of the employee’s base salary

Chapter 13

Marginal Tax Rate

- The percentage of an additional dollar of earnings that goes to taxes

Consolidated Omnibus Budget Reconciliation Act (COBRA)

- The 1985 act that requires employers to permit employees to extend their health insurance
coverage at group rates for up to 36 months following a qualifying event, such as a layoff

Pension Benefit Guaranty Corporation (PBGC)

- The agency that guarantees to pay employees a basic retirement benefit in the event that
financial difficulties force a company to terminate or reduce employee pension benefits

Employee Retirement Income Security Act (ERISA)

- The 1974 act that increased the fiduciary responsibilities of pension plan trustees, established
vesting rights and portability provisions, and established the Pension Benefit Guaranty
Corporation (PBGC)

Cash Balance Plan

- Retirement plan in which the employer sets up an individual account for each employee and
contributes a percentage of the employee’s salary; the account earns interest at a predefined
rate.

Summary Plan Description (SPD)

- A reporting requirement of the Employee Retirement Income Security Act (ERISA) that obligates
employers to describe the plan’s funding, eligibility requirements, risks, and so forth within 90
days after an employee has entered the plan

Family and Medical Leave Act

- The 1993 act that requires employers with 50 or more employees to provide up to 12 weeks of
unpaid leave after childbirth or adoption; to care for a seriously ill child, spouse, or parent; or for
an employee’s own serious illness

Health Maintenance Organization (HMO)

- A health care plan that provides benefits on a prepaid basis for employees who are required to
use only HMO medical service providers

Preferred Provider Organization (PPO)

- A group of health care providers who contract with employers, insurance companies, and so
forth to provide health care at a reduced fee.

Financial Accounting Statement (FAS) 106

- The rule issued by the Financial Accounting Standards Board in 1993 requiring companies to
fund benefits provided after retirement on an accrual rather than a pay-as-you-go basis and to
enter these future cost obligations on their financial statements

Chapter 14

Checkoff Provision
- A union contract provision that requires an employer to deduct union dues from employees’
paychecks

Closed Shop
- A union security provision requiring a person to be a union member before being hired, illegal
under NLRA

Union Shop
- A union security provision that requires a person to join the union within a certain amount of time
after being hired

Agency Shop
- A union security provision that requires an employee to pay union membership dues but not to
join the union

Maintenance of Membership
- Union rules requiring members to remain members for a certain period of time (such as the
length of the union contract)

Right-to-Work Laws
- State laws that make union shops, maintenance of membership, and agency shops illegal

Taft-Hartley Act
- The 1947 act that outlawed unfair union labor practices

Associate Union Membership

- A form of union membership by which the union receives dues in exchange for services (e.g.,
health insurance, credit cards) but does not provide representation in collective bargaining

Corporate Campaigns
- Union activities designed to exert public, financial, or political pressure on employers during the
union-organizing process

Distributive Bargaining
- The part of the labor-management negotiation process that focuses on dividing a fixed economic
“pie”

Integrative Bargaining
- The part of the labor-management negotiation process that seeks solutions beneficial to both
sides.

Attitudinal Structuring
- The aspect of the labor-managment negotiation process that refers to the relationship and level
of trust between the negotiators

Intraorganizational Bargaining
- The part of the labor-management negotion process that focuses on the conflicting objectives of
factions within labor and management
Mediation
- A procedure for resolving collective bargaining impasses by which a mediator with no formal
authority acts as a facilitator and go-between in the negotiations

Fact Finder
- A person who reports on the reasons for the labor-management dispute and the views and
arguments of both sides and offers a nonbinding recommendation for settling the dispute

Arbitration
- A procedure for resolving collective bargaining impasses by which and arbitrator chooses a
solution to the dispute

Duty of Fair Representation

- The National Labor Relations Act requirement that all bargaining unity members have equal
access to and representation by the union.

Chapter 15

Individualism-Collectivism
- One of Hofstede’s cultural dimensions; describes the strength of the relation between an
individual and other individuals in a society

Power Distance
- One of Hofstede’s cultural dimensions; describes how a culture deals with hierarchical power
relationships

Uncertainty Avoidance
- One of Hofstede’s cultural dimensions; describes how cultures seek to deal with an
unpredictable future

Masculinity-Femininity Dimension
- One of Hofstede’s cultural dimensions; describes the division of roles between the sexes within
a society

Long-Term-Short Term Orientation

- One of Hofstede’s cultural dimensions; describes how a culture balances immediate benefits
with future rewards

Parent Country
- The country in which a company’s corporate headquarters is located

Host Country
- The country in which the parent country organization seeks to locate or has already located a
facility

Third Country
- A country other than a host or parent country

Expatriate
- An employee sent by his or her company in one country to manage operations in a different
country.

Parent-Country Nationals (PCNs)

- Employees who were born and live in a parent country

Host-Country Nationals (HCNs)

- Employees who were born and raised in the host, not the parent, country

Third-Country Nationals (TCNs)

- Employees born in a country other than the parent or host country

Transnational Scope
- A company’s ability to make HRM decisions from an international perspective

Transnational Representation
- Reflects the multinational composition of a company’s managers

Transnational Process
- The extent to which a company’s planning and decision-making processes include
representatives and ideas from a variety of cultures

Chapter 16

Audit Approach
- Type of assessment of HRM effectiveness that involves review of customer satisfaction or key
indications (like turnover rate or average days to fill a position) related to an HRM functional area
(such as recruiting or training).

Analytic Approach
- Type of assessment of HRM effectiveness that involves determining the impact of, or the
financial cost and benefits of, a program of practice

Outsourcing
- An organization’s use of an outside organization for a broad set of services

Reengineering
- Review and redesign of work processes to make them more efficient and improve the quality of
the end product or service

New Technologies
- Current applications of knowledge, procedures, and equipment that have not been previously
used. Usually involves replacing human labor with equipment, information processing, or some
combination of the two.

Transaction Processing
- Computations and calculations used to review and document HRM decisions and practices

Decision Support Systems

- Problem-solving systems which usually include a “what-if” feature that allows users to see how
outcomes change when assumptions or data change

Expert Systems
- Computer systems incorporating the decision rules of people recognized as experts in a certain
area.

Strategic Advisor
- A role of the CHRO that focuses on the formulation and implementation of the firm’s strategy

Talent Architect
- A role of the CHRO that focuses on building and identifying the human capital critical to the
present and future value of the firm
Counselor/Confidante/Coach
- A role of the CHRO that focuses on counseling or coaching team members or resolving
interpersonal or political conflicts among team members

Leader of the HR Function

- A role of the CHRO that focuses on working with HR team members regarding the development,
design, and delivery of HR services

Liaison to the Board

- A role of the CHRO that focuses on preparation for board meetings, phone calls with board
members, and attendance at board meetings

Workforce Sensor
- A role of the CHRO that focuses on identifying workforce morale issues or concerns

Representative of the Firm

- A role of the CHRO that focuses on activities with external stakeholders, such as lobbying,
speaking to outside groups, etc.