SHRM-CP Vocabulary

1. Accounts payable

Money an organization owes its vendors and suppliers.

2. Accounts receivable

Money an organization's customers owe the organization.

3. ADA Amendments Act (ADAAA)

Amendments to U.S. Americans with Disabilities Act covering the definition of individuals regarded as having a disability, mitigating measures, and other rules of construction to guide the analysis of what constitutes a disability.

4. ADDIE model

Five-step instructional design process that governs the development of learning programs.

5. Adverse impact

Type of discrimination that results when a neutral policy has a discriminatory effect; also known as disparate impact.

6. Affinity diagramming

Data sorting technique in which a group categorizes and subcategorizes data until relationships are clearly drawn.

7. Age Discrimination in Employment Act (ADEA)

U.S. act that prohibits discrimination in the workplace on the basis of age.

8. Alternative dispute resolution (ADR)

Umbrella term used to describe a number of problem-solving and grievance resolution approaches.

9. Amendment

Modification of the U.S. Constitution or a U.S. law.

10. Americans with Disabilities Act (ADA)

U.S. act that prohibits discrimination against a qualified individual with a disability because of his/her disability.

11. Andragogy

Study of how adults learn.

12. Applicant tracking software (ATS)

Software that provides an automated way for organizations to manage the recruiting process.

13. Apprenticeship

Related to technical skills training; often a partnership between employers and unions.

14. Arbitration

Procedure in which disputes are submitted to one or more impartial persons for final determination.

15. Assessment centers

Assessment tools that provide candidates a wide range of leadership situations and problem-solving exercises.

16. Assets

Financial, physical, and sometimes intangible properties an organization owns.

17. Assignees

Employees who work outside their home countries.

18. Auditory learners

People who learn best by relying on their sense of hearing.

19. Authentic leadership

Leadership grounded in an individual's values and principles and focused on empowering others to act.

20. Balanced scorecard

Measurement approach that provides an overall picture of an organization's performance as measured against goals in finance, customers, internal business processes, and learning and growth.

21. Balance sheet

Statement that reports the financial position of the organization at a specific point in time; shows assets, liabilities, and shareholder equity.

22. Behavioral interview

Type of interview that focuses on how applicants previously handled real situations.

23. Benchmarking

Process that compares performance levels and/or processes of one entity with those of another to identify performance gaps and set goals aimed at improving performance.

24. Benefits

Payments or services provided to employees to cover issues such as retirement, health care, sick pay/disability schemes, life insurance, and paid time off.

25. Bias

Occurs when an appraiser's values, beliefs, or prejudices distort performance ratings.

26. Big data

High-volume, high-velocity, and high-variety information assets that require innovative forms of information processing for enhanced insight and decision making.

27. Bill

A proposal presented to a legislative body for possible enactment as a statute.

28. Blended learning

Planned approach to learning that includes a combination of instructor-led training, self-directed study, and/or on-the-job training.

29. Blogs

Broadcast-style communications that enable authors to publish articles, opinions, product or service reviews, etc., on a web page.

30. Blue ocean strategies

Strategies that generate competitive advantage by creating a new marketplace arena in which there are no other competitors.

31. Bona fide occupational qualification (BFOQ)

Situation in which religion, sex, or national origin is reasonably necessary to carrying out a particular job function in the normal operations of an organization.

32. Brain drain

Exit of educated and skilled citizens from emerging and developing countries for better-paying jobs in developed countries.

33. Broadbanding

Combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread.

34. Burlington Industries, Inc. v. Ellerth

U.S. court ruling that distinguished between supervisor harassment that results in tangible employment action and supervisor harassment that does not.

35. Business Acumen competency

The ability to understand and apply information with which to contribute to the organization's strategic plan.

36. Business case

Presentation to management that establishes that a specific problem exists and argues that the proposed solution is the best way to solve the problem in terms of time, cost efficiency, and probability of success.

37. Business intelligence

Ability to gather and analyze data from inside and outside the organization so that information is available for decision makers.

38. Career development

Process by which employees progress through a series of stages in their careers, each of which is characterized by relatively unique issues, themes, and tasks.

39. Career management

Preparing, implementing, and monitoring employees' career paths, with a primary focus on the goals and needs of the organization.

40. Career planning

Actions and activities that individuals perform in order to give direction to their work lives.

41. Cash flow statement

Statement that shows incoming and outgoing cash in the areas of operations, investments, and financing and remaining cash reserves; reflects an organization's ability to meet its current and short-term obligations.

42. Center of excellence (COE)

HR structural alternative established as an independent department that provides services within a focused area to internal clients.

43. Central tendency error

Error that occurs when an appraiser rates all employees within a narrow range, regardless of differences in actual performance.

44. Chain of command

Line of authority within an organization.

45. Civil law

Legal system based on written codes (laws, rules, or regulations).

46. Civil Rights Act of 1964

First comprehensive U.S. law making it unlawful to discriminate on the basis of race, color, religion, sex, or national origin.

47. Civil Rights Act of 1991

U.S. act that expands the possible damage awards available to victims of intentional discrimination to include compensatory and punitive damages; gives plaintiffs in cases of alleged discrimination the right to a jury trial.

48. Cloud computing

Style of computing in which scalable IT-enabled capabilities are delivered as a service using Internet technologies.

49. Code of conduct

Principles of conduct within an organization that guide decision making and behavior; also known as code of ethics.

50. Codetermination

Form of corporate governance that requires a typical management board and a supervisory board and that allows management and employees to participate in strategic decision making.

51. Co-employment

Situation in which an organization shares responsibility and liability for their alternative workers with an alternative staffing supplier; also known as joint employment.

52. Collective bargaining

Process by which management and union representatives negotiate the employment conditions for a particular bargaining unit for a designated period of time.

53. Collective bargaining agreement

Agreement or contract negotiated through collective bargaining process.

54. Common law

Legal system in which each case is considered in terms of how it relates to legal decisions that have already been made; evolves through judicial decisions over time.

55. Communication competency

The ability to effectively exchange information with stakeholders.

56. Comparable worth

Concept that states that jobs requiring comparable skills, effort, responsibility, and working conditions filled primarily by women should have the same job classification and salary as similar jobs filled by men.

57. Compa-ratio

Pay rate divided by the midpoint of the pay range.

58. Compensation

All financial returns (beyond any benefits payments or services), including salary and allowances.

59. Competencies

Clusters of highly interrelated attributes, including knowledge, skills, or abilities (KSA) that give rise to the behaviors needed to perform a given job effectively.

60. Competency-based interview

Type of interview in which the interviewer asks questions related to competencies for the position and asks candidates to provide examples of times they demonstrated the competencies.

61. Compliance

Being in accordance with all national, federal, regional, or local laws, regulations, and government authority requirements for all the nations in which an organization operates.

62. Compliance program

System for ensuring that policies and procedures addressing issues identified in the code of conduct are presented to and understood and acted on by everyone in the organization and for evaluating the results of those efforts.

63. Conciliation

Method of nonbinding dispute resolution involving a third party who tries to help disputing parties reach a mutually agreeable decision; also known as mediation.

64. Conflict of interest

Situation in which a person or organization has the potential to be influenced by opposing sets of incentives.

65. Consolidated Omnibus Budget Reconciliation Act (COBRA)

U.S. act that provides individuals and dependents who may lose medical coverage with opportunity to pay to continue coverage.

66. Constructive discipline

Form of corrective discipline that implements increasingly severe penalties for employees; also called progressive discipline.

67. Consultation competency

The ability to provide guidance to organizational stakeholders.

68. Contingency plan

Protocol that an organization implements when an identified risk event.

69. Contrast error

Error that occurs when an employee's rating is based on how his or her performance compares to that of another employee rather than objective standards.

70. Corporate social responsibility (CSR)

Recognition of the impact a corporation has on the lives of its stakeholders and the environment; can include corporate governance, corporate philanthropy, sustainability, and employee rights and workplace safety.

71. Cosourcing

Situation in which an enterprise outsources only one part of a function, often collocating it at the organization's workplace.

72. Cost-benefit analysis

Ratio of value created to cost of creating that value; allows management to determine the financial impact particular activities and programs have on an organization's profitability.

73. Cost-of-living adjustment (COLA)

Pay adjustment given to eligible employees regardless of performance or organizational profitability; usually linked to inflation.

74. Critical Evaluation competency

The ability to interpret information with which to make business decisions and recommendations.

75. Critical path

Describes the shortest amount of time required to complete a project, taking into account all project task relationships.

76. Cultural noise

Type of measurement bias in which analyst fails to recognize that individual is responding with answers the analyst wants to hear and that analyst's culture/values are determining what he or she hears.

77. Cultural relativism

Concept that argues that ethical behavior is determined by local culture, laws, and business practices.

78. Culture

Set of beliefs, attitudes, values, and behaviors shared by members of a group and passed down from one generation to the next.

79. Dashboards

Reporting mechanisms that aggregate and display metrics and key performance indicators.

80. Database

Data structure that stores organized information (numeric information as well as sound clips, pictures, and videos).

81. Database management system (DBMS)

Variety of software applications that electronically manage stored data.

82. Dedicated HR

HR structural alternative that allows businesses with different strategies in multiple units to apply HR expertise to each unit's specific strategic needs.

83. Delphi technique

Forecasting technique that progressively collects information from a group without physically assembling the contributors.

84. Departmentalization

Way an organization groups jobs to coordinate work.

85. Developmental activities

Activities that focus on preparing employees for future responsibilities while increasing their capacity to perform their current jobs.

86. Differential pay

Pay rates that are affected by where or when an employee works.

87. Dilemma reconciliation

Process of charting a course through cultural differences.

88. Disability

Physical or mental impairment that substantially limits major life activities.

89. Disparate impact

Type of discrimination that results when a neutral policy has a discriminatory effect; also known as adverse impact.

90. Disparate treatment

Type of discrimination that occurs when an applicant or employee is treated differently because of his or her membership in a protected class.

91. Distance learning

Process of delivering educational or instructional programs to locations away from a classroom or site.

92. Diversity

Differences in characteristics of people; can involve personality, work style, race, age, ethnicity, gender, religion, education, functional level at work, etc.

93. Diversity council

Task force created to define a diversity and inclusion initiative and guide the development and implementation process.

94. Diversity dimensions

Framework for understanding the range and complexity of diversity; includes four layers (personality, internal dimensions, external dimensions, and organizational dimensions); also known as identity group.

95. Diversity of thought

Concept describing the presence of different types of cognitive processes in a workplace; opposed to "groupthink," or similarity of thought processes and opinions.

96. Divestiture

Sale by a company of an asset that is not performing well, that is not core to the company's business, or that is worth more as a separate entity.

97. Domestic partners

Unmarried couples, of the same or opposite sex, who live together and seek economic and noneconomic benefits comparable to those granted to their married counterparts.

98. Drug-Free Workplace Act

U.S. law that requires federal contractors with contracts of $100,000 or more as well as recipients of grants from federal government to certify they are maintaining a drug-free workplace.

99. Dual career ladders

Career development programs that identify meaningful career paths for professional and technical people outside traditional management roles.

100. Due diligence

Necessary level of care and attention that is taken to investigate an action before it is taken.

101. Due process

Concept that laws are enforced only through accepted, codified procedures.

102. Duty of care

Principle that organizations should take all steps that are reasonably possible to ensure the health, safety, and well-being of employees and protect them from foreseeable injury.

103. E-learning

Delivery of training and educational materials, processes, and programs via the use of electronic media.

104. Emotional intelligence (EI)

Quality of being sensitive to and understanding of one's own and others' emotions and the ability to manage one's own emotions and impulses.

105. Employee engagement

Employees' commitment to an organization; willingness to put in effort that promotes the effective functioning of the organization.

106. Employee life cycle (ELC)

Activities associated with an employee's tenure in an organization.

107. Employee Polygraph Protection Act (EPPA)

U.S. act that generally prevents most private employers engaged in or affecting interstate commerce from using lie detector tests either for preemployment screening or during the course of employment, with certain exemptions.

108. Employee resource group (ERG)

Voluntary group for employees who share a particular diversity dimension (race, religion, ethnicity, sexual orientation, etc.); also known as affinity group or network group.

109. Employee Retirement Income Security Act (ERISA)

U.S. act that established uniform minimum standards for employer-sponsored retirement and health and welfare benefit programs.

110. Employees

Individuals who exchange work for wages or salary; in the U.S., workers who are covered by Fair Labor Standards Act regulations as determined by the IRS.

111. Employee surveys

Instruments used to collect and assess employee perceptions about the work environment.

112. Employment at-will

Principle of employment in the U.S. that employers have the right to hire, fire, demote, and promote whomever they choose for any reason unless there is a law or contract to the contrary and employees have the right to quit a job at any time.

113. Employment branding

Process of positioning an organization as an "employer of choice" in the labor market.

114. Employment practices liability insurance (EPLI)

Type of liability insurance covering an organization against claims by employees, former employees, and employment candidates alleging that their legal rights in the employment relationship have been violated.

115. Encryption

Conversion of data into a format that protects or hides its natural presentation or intended meaning.

116. Enterprise resource planning (ERP)

Business management software, usually a suite of integrated applications, that a company can use to collect, store, manage and interpret data from many business activities.

117. Environmental scanning

Process that involves a systematic survey and interpretation of relevant data to identify external opportunities and threats and to assess how these factors affect the organization currently and how they are likely to affect the organization in the future

118. e-procurement

Use of electronic communications and transaction processing when buying (or contracting for/tendering) supplies and services.

119. Equal Employment Opportunity Act

U.S act that amended Title VII and gave the Equal Employment Opportunity Commission authority to implement its administrative findings and conduct its own enforcement litigation.

120. Equal Pay Act (EPA)

U.S. act that prohibits wage discrimination by requiring equal pay for equal or "substantially equal" work.

121. Equity

Amount of owners' or shareholders' portion of a business.

122. Essential functions

Primary job duties that a qualified individual must be able to perform, either with or without reasonable accommodation.

123. Ethical Practice competency

The ability to integrate core values, integrity, and accountability throughout all organizational and business practices.

124. Ethical universalism

Concept that argues that there are fundamental ethical principles that apply across cultures.

125. Ethics

Set of behavioral guidelines by which all directors, managers, and employees of an organization are expected to behave to ensure appropriate moral and ethical business standards, typically beyond the letter of the law.

126. Exempt employees

Employees who are excluded from U.S. Fair Labor Standards Act minimum wage and overtime pay requirements.

127. External equity

Situation in which an organization's compensation levels and benefits are similar to those of other organizations that are in the same labor market and compete for the same employees.

128. Extraterritoriality

Extension of the power of a country's laws over its citizens outside that country's sovereign national boundaries.

129. Fair and Accurate Credit Transactions Act (FACT Act)

U.S act that provides some relief to employers using third parties to conduct workplace investigations.

130. Fair Credit Reporting Act (FCRA)

U.S act that protects privacy of background information and ensures that information supplied is accurate.

131. Fair Labor Standards Act (FLSA)

U.S act that establishes minimum wage, overtime pay, youth employment, and record-keeping standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

132. Family and Medical Leave Act (FMLA)

U.S act that provides employees with up to 12 weeks of unpaid leave to care for family members or because of a serious health condition of the employee.

133. Faragher v. City of Boca Raton

U.S. court ruling that distinguished between supervisor harassment that results in tangible employment action and supervisor harassment that does not.

134. First-impression error

Type of measurement bias in which investigator makes snap judgments and lets first impression (either positive or negative) cloud subsequent evaluation.

135. Flat-rate pay

Provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as single-rate pay.

136. Focus group

Small group (normally six to twelve) invited to actively participate in a structured discussion with a facilitator.

137. Force-field analysis

Type of analysis in which factors that can influence an outcome in either a negative or positive manner are listed and then assigned weights to indicate their relative strengths.

138. Formalization

Refers to the extent to which rules, policies, and procedures govern the behavior of employees in an organization.

139. Front-back structure

Organizational structure that divides an organization into "front" functions, which focus on customers or market groups, and "back" functions, which design and develop products and services.

140. Functional HR

HR structural alternative in which headquarters HR specialists craft policies and HR generalists located within divisions or other locales implement the policies, adapt them as needed, and interact with employees.

141. Functional structure

Organizational structure in which departments are defined by the services they contribute to the organization's overall mission, such as marketing and sales, operations, and HR.

142. Gamification

Selective use of game design and game mechanics to drive employee engagement in non-gaming business scenarios.

143. Gender

Refers to the socially constructed system that associates masculinity or femininity to certain roles, behaviors, activities, and attributes.

144. Gender identity

Refers to one's internal, personal sense of being a man or a woman (or boy or girl), which may or may not be the same as one's sexual assignment at birth.

145. General Duty Clause

Statement in U.S. Occupational Safety and Health Act that requires employers subject to OSHA to provide employees with a safe and healthy work environment.

146. General pay increase

Pay increase given to employees based on local competitive market requirements; awarded regardless of employee performance.

147. Genetic Information Nondiscrimination Act (GINA)

U.S act that prohibits discrimination against individuals on the basis of their genetic information in both employment and health insurance.

148. Geographic structure

Organizational structure in which geographic regions define the organizational chart.

149. Global and Cultural Effectiveness competency

The ability to value and to consider the perspectives and backgrounds of all parties in global business.

150. Global integration (GI) strategy

Globalization strategy that emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations.

151. Globalization

Growing interconnectedness and interdependency of countries, people, and companies.

152. Global mindset

Ability to take an international, multidimensional perspective that is inclusive of other cultures, perspectives, and views.

153. Global remittances

Monies sent back home by migrants working in foreign countries.

154. Glocalization

Characteristic of an organization with a strong global image but an equally strong local identity.

155. Governance

System of rules and processes an organization puts in place to ensure its compliance with local and international laws, accounting rules, ethical norms, and its own codes of conduct.

156. Green-circle rates

Situations in which an employee's pay is below the minimum of the range.

157. Grievance procedure

Orderly way to resolve differences of opinion in regard to a union contract.

158. Griggs v. Duke Power

U.S. case that recognized adverse impact discrimination.

159. Gross profit margin

Ratio of gross profit to net sales.

160. Groupware

Umbrella term for specialized collaborative software applications.

161. Hacking

Act of deliberately accessing a computer without permission.

162. Halo effect

Type of measurement bias in which analyst allows one strong point that he or she values highly and that works in subject's favor to overshadow all other information.

163. Hazard

Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness.

164. Head count

Number of people on an organization's payroll at a particular moment in time.

165. High-context culture

Society or group where people have close connections over a long period of time and where many aspects of behavior are not made explicit, because most members know what to do and think from years of interaction.

166. Horn effect

Type of measurement bias in which analyst allows one strong point that he or she values highly and that works against subject to overshadow all other information.

167. Hostile environment harassment

Occurs when sexual or other discriminatory conduct is so severe and pervasive that it interferes with an individual's performance; creates an intimidating, threatening, or humiliating work environment; or perpetuates a situation that affects the employee'

168. HR audit

Systematic and comprehensive evaluation of an organization's HR policies, practices, procedures, and strategies.

169. HR Expertise (HR Knowledge)

The knowledge of principles, practices, and functions of effective human resource management.

170. Human resource information system (HRIS)

Systematic tool for gathering, storing, maintaining, retrieving, and revising HR data.

171. Hybrid structure

Organizational structure that mixes elements of the functional, product, and geographic structures.

172. Identity alignment

Extent to which diversity is embraced in management of people, products/services, and branding.

173. Immigration Reform and Control Act (IRCA)

U.S. act that prohibits discrimination against job applicants on the basis of national origin or citizenship; establishes penalties for hiring illegal aliens and requires employers to establish each employee's identity and eligibility to work.

174. Incentive pay

Form of direct compensation where employers pay for performance beyond normal expectations to motivate higher performance.

175. Incentives

Payments in return for the achievement of specific, time-limited, targeted objectives.

176. Inclusion

Extent to which each person in an organization feels welcomed, respected, supported, and valued as a team member.

177. Income statement

Statement that reports revenues, expenses, and net income (profit) for a specified period.

178. Independent contractors

Self-employed individuals hired on a contract basis for specialized services.

179. Industrial actions

Various forms of collective employee actions taken to protest work conditions or employer action.

180. Information management (IM)

Use of technology to collect, process, and condense information with a goal of efficient management of information as an organizational resource.

181. Insourcing

Transferring a previously outsourced function back in-house.

182. Intellectual property (IP)

Ownership of innovation by an individual or business enterprise; includes patented, trademarked, or copyrighted property.

183. Intercultural wisdom

Capacity to recognize, interpret, and behaviorally adapt to multicultural situations and contexts; also called cultural intelligence.

184. Internal equity

Situation in which employees feel that performance or job differences result in corresponding differences in rewards that are fair.

185. Intrinsic motivation

Desire to do things because they matter, because we like it, because they're interesting, or because they are part of something important.

186. Job analysis

Systematic study of jobs to determine what activities (tasks) and responsibilities they include, personal qualifications necessary for performance of the jobs, the conditions under which the work is performed, and the reporting structure.

187. Job classification

Job evaluation method in which descriptions are written for each class of jobs; individual jobs are then put into the grade that best matches their class description.

188. Job-content-based job evaluation

Job evaluation method in which the relative worth and pay structure of different jobs are based on an assessment of their content and their relationship to other jobs within the organization.

189. Job description

Written description of a job and its requirements, including tasks, knowledge, skills, abilities, responsibilities, and reporting structure.

190. Job enlargement

Broadening the scope of a job by expanding the number of different tasks to be performed.

191. Job enrichment

Increasing the depth of a job by adding responsibilities such as planning, organizing, tracking, and completing reports.

192. Job evaluation

Process that determines the value and price of a job in order to place and compare it within an organization as well as attract and retain employees in a competitive environment.

193. Job ranking

Job evaluation method that involves establishing a hierarchy of jobs from lowest to highest based on each job's overall value to the organization.

194. Job rotation

Movement between different jobs.

195. Job specifications

Written statements of the necessary qualifications for the job incumbent.

196. Joint employment

Situation in which an organization shares responsibility and liability for their alternative workers with an alternative staffing supplier; also known as co-employment.

197. Judgmental forecasts

Use of information from past and present to predict future conditions.

198. Jurisdiction

Right of a legal body to exert authority over a given geographical territory, subject matter, or persons or institutions.

199. Key performance indicators (KPIs)

Quantifiable measures of performance used to gauge progress toward strategic objectives or agreed standards of performance.

200. Key risk indicators (KRIs)

Metrics that provide an early signal of increasing risk exposures in the various areas of an enterprise.

201. Kinesthetic learners

People who learn best through a hands-on approach; also called tactile learners.

202. Knowledge management (KM)

Process of creating, acquiring, sharing, and managing knowledge to augment individual and organizational performance.

203. KSA

Knowledge, skills, or abilities needed to effectively perform a job.

204. Labor-Management Relations Act (LMRA)

U.S. act that provides balance of power between union and management by designating certain union activities as unfair labor practices; also known as Taft-Hartley Act.

205. Labor-Management Reporting and Disclosure Act (LMRDA)

U.S. act that protects the rights of union members from corrupt or discriminatory labor unions; also known as Landrum-Griffin Act.

206. Labor union

Group of workers who coordinate their activities to achieve common goals in their relationship with an employer or group of employers; also called trade union.

207. Lagging indicator

Type of metric that describes an activity that has already occurred.

208. Layoffs

Temporary employment separations; employees may be recalled to work, or the separation may become permanent.

209. Leadership

Ability of an individual to influence a group or another individual toward the achievement of goals and results.

210. Leadership and Navigation competency

The ability to direct and contribute to initiatives and processes within the organization.

211. Leadership development

Training and professional development programs targeted to assist management- and executive-level employees in developing the skills, abilities, and flexibility required to deal with a variety of situations.

212. Leading indicator

Type of metric that describes an activity that can change future performance and indicate higher degree of success in achieving strategic goals.

213. Learning management system (LMS)

System that holds course content information and has the capability of tracking and managing employee course registrations, career development, and other employee development activities.

214. Learning organization

Organization characterized by a capability to adapt to changes in environment.

215. Lechmere, Inc. v. NLRB

1992 case in which the U.S. Supreme Court ruled that an employer cannot be compelled to allow nonemployee organizers onto the business property.

216. Ledbetter v. Goodyear Tire & Rubber Co.

2007 case in which the U.S. Supreme Court ruled that claims of sex discrimination in pay under Title VII were not timely because discrimination charges were not filed with the EEOC within the required 180-day time frame.

217. Leniency errors

Errors that are the result of appraisers who don't want to give low scores.

218. Liabilities

Organization's debts and other financial obligations.

219. Lilly Ledbetter Fair Pay Act

U.S. act that creates a rolling time frame for filing wage discrimination claims and expands plaintiff field beyond employee who was discriminated against.

220. Line units

Work groups that conduct the major business of an organization.

221. Local responsiveness (LR) strategy

Globalization strategy that emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems.

222. Lockout

Occurs when management shuts down operations to prevent union employees from working.

223. Low-context culture

Society in which people tend to have many social connections but of shorter duration and where behavior and beliefs may need to be described explicitly so that those coming into the cultural environment know how to behave.

224. Lump-sum increase (LSI)

One-time payment made to an employee; also called performance bonus.

225. Market-based job evaluation

Job evaluation method in which the relative worth and pay structure of different jobs are based on their market value or the going rate in the marketplace.

226. Matrix structure

Organizational structure that combines departmentalization by division and function to gain the benefits of both.

227. Maturity curves

Correlate pay with time spent in a professional field such as teaching or research.

228. Mean

Average score or value.

229. Median

Middle point above and below which 50% of scores in a set of data lie.

230. Mediation

Method of nonbinding dispute resolution involving a third party who helps disputing parties reach a mutually agreeable decision; also known as conciliation.

231. Mentoring

Developmentally oriented relationship between two individuals.

232. Merger/acquisition (M&A)

Combination of two separate firms either by their joining together as relative equals (merger) or by one acquiring the other (acquisition).

233. Merit pay

Situation where an individual's performance on the job is the basis for the amount and timing of pay increases; also called performance-based pay or pay for performance.

234. Metrics

Performance parameters based on the relationship between two or more measures.

235. Mind mapping

Data sorting technique in which group members add related ideas and indicate logical connections, eventually grouping similar ideas.

236. Mission statement

Statement that specifies what activities an organization intends to pursue and what course management has charted for the future; a concise statement of its strategy.

237. Mobile learning

Digitized instructional content delivered to wireless mobile devices (e.g., smartphones, tablet computers, notebooks, and digital readers).

238. Mode

Value that occurs most frequently in a set of data.

239. Moral hazard

Situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss.

240. Motivation

Factors that initiate, direct, and sustain human behavior over time.

241. Multi-criteria decision analysis (MCDA)

Decision-making tool in which a team determines critical characteristics of a successful decision; a matrix is used to score each alternative and compare results.

242. Multinational enterprise (MNE)

Organization that owns or controls production or services facilities in one or more countries other than the home country.

243. National Defense Authorization Acts (NDAA)

U.S. acts that expanded FMLA leave for employees with family members who are covered members of the military.

244. National Federation of Independent Business v. Sebelius

U.S. Supreme Court ruling that Patient Protection and Affordable Care Act requirement that individuals purchase health insurance was constitutional but that requirement that states expand Medicaid was not.

245. National Labor Relations Act (NLRA);

U.S. act that protects and encourages the growth of the union movement. The act established workers' rights to organize and bargain collectively with employers.; also known as Wagner Act.

246. National origin

Refers to the country (including those that no longer exist) of one's birth or of one's ancestors' birth.

247. Negative emphasis

Type of measurement bias that involves weighting a small negative reaction or piece of information more than it should objectively merit.

248. Negotiation

Process in which two or more parties work together to reach agreement on a matter.

249. Net profit margin

Ratio of net income (gross sales minus expenses and taxes) to net sales.

250. NLRB v. Weingarten

Landmark 1975 U.S. labor relations case that dealt with the right of a unionized employee to have another person present during certain investigatory interviews.

251. Nominal group technique

Group of individuals who meet face-to-face to forecast ideas and assumptions and prioritize issues.

252. Nonexempt employees

Employees covered under U. S. Fair Labor Standards Act regulations, including minimum wage and overtime pay requirements.

253. Occupational illness

Medical condition or disorder, other than one resulting from an occupational injury, caused by exposure to environmental factors associated with employment.

254. Occupational injury

Injury that results from a work-related accident or exposure involving a single incident in the work environment.

255. Occupational Safety and Health Administration (OSHA)

U.S. agency that administers and enforces the Occupational Safety and Health Act of 1970.

256. Occupational Safety and Health (OSH) Act

U.S. act that established the first national policy for safety and health and continues to deliver standards that employers must meet to guarantee the health and safety of their employees.

257. Offshoring

Situation in which a company relocates processes or production to an international location by means of subsidiaries or third-party affiliates.

258. Older Workers Benefit Protection Act (OWBPA)

U.S. act that amended the Age Discrimination in Employment Act to include all employee benefits; also provided standards that an employee's waiver of the right to sue for age discrimination must meet in order to be upheld by a court.

259. Onboarding

Programs that help employees develop positive working relationships with coworkers; encompass orientation as well as the first months of an employee's tenure in a position.

260. On-the-job training (OJT)

Training provided to employees at the work site utilizing demonstration and performance of job tasks.

261. Organizational culture

The basic beliefs and customs shared by members of an organization that contribute to an organization's sense of its identity.

262. Organizational development

Process of enhancing the effectiveness and efficiency of an organization and the well-being of its members through planned interventions.

263. Organizational learning

Certain types of learning activities or processes that may occur at any one of several levels in an organization.

264. Organizational values

Beliefs that are important to an organization and often dictate employee behavior.

265. Orientation

Process in which a new employee becomes familiar with an organization as well as his or her department, coworkers, and the job.

266. Outsourcing

Contracting with third-party vendors to provide selected services/activities.

267. Overtime pay

Required for nonexempt workers under U. S Fair Labor Standards Act at 1.5 times the regular rate of pay for hours over 40 in a workweek.

268. Paired comparison

Job evaluation method in which each job is compared with every other job being evaluated; the job with the largest number of "greater than" rankings is the highest-ranked job, etc.

269. Patient Protection and Affordable Care Act (PPACA)

2010 U.S. law that requires virtually all citizens and legal residents to have minimum health coverage and requires employers with more than 50 full-time employees to provide health coverage that meets minimum benefit specifications or pay a penalty.

270. Pay compression

Occurs when there is only a small difference in pay between employees regardless of their experience, skills, level, or seniority; also known as salary compression.

271. Pay equity

Fairness of compensation and benefits paid to employees.

272. Pay for performance (P4P, PfP)

Situation where an individual's performance on the job is the basis for the amount and timing of pay increases; also called merit pay or performance-based pay.

273. Pay grades

Used to group jobs that have approximately the same relative internal or external worth and are paid at the same rate or within the same pay range.

274. Pay ranges

Set the upper and lower bounds of possible compensation for individuals whose jobs fall within a pay grade.

275. Pedagogy

Study of the education of children.

276. Pension Benefit Guaranty Corporation (PBGC)

Set up by U.S. Employee Retirement Income Security Act to insure payment of benefits in the event that a private-sector defined benefit pension plan terminates with insufficient funds to pay the benefits.

277. Performance appraisal

Process of measuring employees' adherence to performance standards and providing feedback.

278. Performance-based pay

Situation where an individual's performance on the job is the basis for the amount and timing of pay increases; also called merit pay or pay for performance

279. Performance bonus

One-time payment made to an employee; also called a lump-sum increase (LSI).

280. Performance management

Process of maintaining/improving employee job performance.

281. Performance standards

Expectations of management translated into behaviors and results that employees can deliver.

282. Perquisites

Special incidental payments, benefits, or privileges given to individual employees, over and above their regular rewards.

283. Person-based pay

Pay systems in which employee characteristics, rather than the job, determine pay.

284. Phillips v. Martin Marietta Corporation

1971 U.S. case that stated that an employer may not, in the absence of business necessity, refuse to hire women with preschool-aged children while hiring men with such children.

285. Picketing

Positioning of employees at a place of work targeted for the action for the purpose of protest.

286. Pilot programs

Learning/development programs offered initially in a controlled environment with a segment of the target audience.

287. Pluralism

Type of labor environment in which multiple forces are at work, each with its own agenda, and conflict is overcome through negotiation.

288. Point-factor system

Job evaluation method that looks at compensable factors (such as skills and working conditions) that reflect how much a job adds value to the organization; points are assigned to each factor and then added to come up with an overall point value for the jo

289. Portal-to-Portal Act

U.S. act that defines what is included as hours worked and is therefore compensable and a factor in calculating overtime.

290. Pregnancy Discrimination Act

U.S. act that prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions.

291. Premiums

Payments in return for the achievement of specific, time-limited, targeted objectives.

292. Primacy error

Occurs when an appraiser gives more weight to an employee's earlier performance and discounts recent occurrences.

293. Principal-agent problem

Situation in which an agent (e.g., an employee) makes decisions for a principal (e.g., an employer) potentially on the basis of personal incentives that may not be aligned with the agent's incentives.

294. Process alignment

Extent to which underlying operations such as IT, finance, or HR integrate across locations.

295. Productivity-based pay

Pay based on the quantity of work and outputs that can be accurately measured.

296. Product structure

Organizational structure in which functional departments are grouped under major product divisions.

297. Protected class

People who are covered under a particular federal or state antidiscrimination law.

298. Prudent person rule

States that an Employee Retirement Income Security Act plan fiduciary has legal and financial obligations not to take more risks when investing employee benefit program funds than a reasonably knowledgeable, prudent investor would under similar circumstan

299. Public comment period

Time allowed for the public to express its views and concerns regarding an action of an administrative agency.

300. Quid pro quo harassment

Type of sexual harassment that occurs when an employee is forced to choose between giving in to a superior's sexual demands and forfeiting an economic benefit such as a pay increase, a promotion, or continued employment.

301. Radicalism

Belief that management-labor conflict is an inherent characteristic of capitalism and can be resolved only with a change in the economic system.

302. Realistic job preview (RJP)

Part of the selection process that provides an applicant with honest and complete information about a job and the work environment.

303. Reasonable accommodation

Modifications or adjustments to a job or job application process that accommodate persons with disabilities but do not impose a disproportionate or undue burden on the employer.

304. Recency error

Error that occurs when an appraiser gives more weight to recent occurrences and discounts an employee's earlier performance during the appraisal period.

305. Recruitment

Process of encouraging candidates to apply for job openings.

306. Red-circle rates

Situations in which employees' pay is above the range maximum.

307. Redeployment

Process by which an organization moves an employee out of an international assignment; can involve moving back to the home country, moving to a different global location, or moving to a new location or position in the current host country.

308. Regression analysis

Statistical method used to determine whether a relationship exists between variables and the strength of the relationship.

309. Regulation

A rule or order issued by an administrative agency; often has the force of law.

310. Relationship Management competency

The ability to manage interactions to provide service and to support the organization.

311. Reliability

Ability of an instrument to provide results that are consistent.

312. Remuneration surveys

Surveys that collect information on prevailing market compensation and benefits practices, including starting wage rates, base pay, pay ranges, other statutory and market cash payments, variable compensation, and time off.

313. Repatriation

Process of reintegrating employees back into the home country after an assignment; includes adjustment to the new job and readjustment to the home culture and conditions.

314. Replacement planning

Snapshot" assessment of the availability of qualified backup for key positions.

315. Residual risk

Amount of uncertainty that remains after all risk management efforts have been exhausted.

316. Restructuring

Act of reorganizing legal, ownership, operational, or other organizational structures.

317. Retention

Ability to keep talented employees in the organization.

318. Reverse innovation

Innovations created for or by emerging-economy markets and then imported to developed-economy markets.

319. Risk

The effect of uncertainty on objectives; outcomes may include opportunities or threats.

320. Risk appetite

Amount of risk the organization or function is willing to pursue or accept to attain its goals.

321. Risk control

An action taken to manage a risk.

322. Risk management

Identification, evaluation, and control of risk that may affect an organization, typically incorporating the use of insurance and other strategies.

323. Risk position

An organization's desired gain or acceptable loss in value.

324. Risk scorecard

Tool used to gather individual assessments of various characteristics of risk (e.g., frequency of occurrence, degree of impact/loss/gain for the organization, degree of efficacy of current controls).

325. Risk tolerance

Amount of uncertainty an organization is willing to pursue or to accept to attain its risk management.

326. Root-cause analysis

Type of analysis that starts with a result and then works backward to identify fundamental cause.

327. Rule of law

Concept that stipulates that no individual is beyond the reach of the law and that authority is exercised only in accordance with written and publicly disclosed laws.

328. Scenario/what-if analysis

Statistical method used to test the possible effects of altering the details of a strategy to see if the likely outcome can be improved.

329. Secondary action

Attempt by a union to influence an employer by putting pressure on another employer.

330. Selection

Process of vetting the most suitable candidate for a position.

331. Selection interviews

Interviews designed to probe areas of interest to the interviewer in order to determine how well a job candidate meets the needs of the organization.

332. Selection screening

Analyzing candidates' application forms, curriculum vitae, and r�sum�s to locate the most-qualified candidates for an open job.

333. Seniority

System that shows preference to employees with the longest service.

334. Service-level agreement (SLA)

Part of a service contract where the service expectations are formally defined.

335. Shared services HR model

HR structural alternative in which centers with specific areas of expertise develop HR policies in those areas; each unit can then select what it needs from a menu of these services.

336. Simulations

Representations of real situations; give organizations the opportunity to speculate as to what would happen if certain courses of action were pursued.

337. Single-rate pay

Provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as flat-rate pay.

338. Sit-down strike

Refusal by workers to work; also refusal by workers to leave their workstations, making it impossible for the employer to use replacement workers.

339. Situation judgment tests (SJTs)

Assessment tools that present prospective leaders with sample situations and problems they might encounter in a work environment.

340. Six Sigma

A set of techniques and tools for quality process improvement.

341. Social media

Variety of Internet technology platforms and communities that people use to communicate and share information and resources.

342. Social movement unionism

Type of union activity that focuses on social topics such as antidiscrimination, environmental actions, and HIV/AIDS treatment and prevention.

343. Software as a service (SaaS)

Software that is owned, delivered, and managed remotely and delivered over the Internet to contracted customers on a pay-for-use basis or as a subscription based on use metrics.

344. Sourcing

Process of generating a pool of qualified job applicants.

345. Span of control

Refers to the number of individuals who report to a supervisor.

346. Staffing

HR function that acts on the organizational human capital needs identified through workforce planning and attempts to provide an adequate supply of qualified individuals to complete the body of work necessary for the organization's financial success.

347. Staff units

Work groups that assist line units by providing specialized services, such as HR.

348. Stakeholder concept

Concept that proposes that any organization operates within a complex environment in which it affects and is affected by a variety of forces or stakeholders who all share in the value of the organization and its activities.

349. Stakeholders

All those affected by an organization's social, environmental, and economic impact shareholders, employees, customers, suppliers, regulators, and local communities.

350. Stereotyping

Generalized opinions about how people of a given gender, race, religion, age, education level, job type, or national origin look, think, act, feel, or respond.

351. Strategic fit

A state in which an organization's strategy is consistent with its external opportunities and circumstances and its internal structure, resources, and capabilities.

352. Strategic management

The actions that leaders take to move their organizations toward those goals and create value for all stakeholders.

353. Strategic planning

The process of setting goals and designing a path toward a competitive position.

354. Strategy

A plan of action for accomplishing an organization's long-range goals.

355. Stress interview

Type of interview in which the interviewer assumes an aggressive posture to see how a candidate responds to stressful situations.

356. Strictness

Error that occurs when an appraiser believes standards are too low and inflates the standards in an effort to make them meaningful.

357. Structured interview

Type of interview in which the interviewer asks every applicant the same questions; also called a repetitive interview.

358. Succession planning

A talent management strategy to help identify and foster the development of high-potential employees.

359. Sustainability

Practices that balance economic, social, and environmental interests to secure the interests of present and future generations.

360. SWOT analysis

Process for assessing an organization's strategic capabilities in comparison to threats and opportunities identified during environmental scanning.

361. Sympathy strike

Action taken in support of another union that is striking the employer.

362. Talent management

Development and integration of HR processes that attract, develop, engage, and retain the knowledge, skills, or abilities of employees that will meet current and future business needs.

363. Time-based step-rate pay

System in which pay is based on longevity in the job and pay increases occur on a predetermined schedule.

364. Totalization agreements

Bilateral agreements entered into by many countries to eliminate double taxation for individuals on international assignments.

365. Total rewards

Direct and indirect remuneration approaches that employers use to attract, recognize, and retain workers.

366. Trade union

Group of workers who coordinate their activities to achieve common goals in their relationship with an employer or group of employers; also called labor union.

367. Training

Process of providing knowledge, skills, or abilities (KSA) specific to a task or job.

368. Transfer of learning

Effective and continuing on-the-job application of the knowledge and skills gained through a training experience.

369. Transformational leadership

Leadership based on vision and strategy and focused on challenging and developing organizational members in order to attain long-range results.

370. Trend analysis

Statistical method that studies the way in which a variable may change over time.

371. Triple bottom line

Economic, social, and environmental impact metrics used to determine an organization's success.

372. Turnover

Annualized formula that tracks number of separations and total number of workforce employees per month.

373. Unfair labor practice (ULP)

Violation of rights under labor-relations statutes.

374. Uniformed Services Employment and Reemployment Rights Act (USERRA)

U.S. act that protects the employment, reemployment, and retention rights of persons who serve or have served in the uniformed services.

375. Uniform Guidelines on Employee Selection Procedures

Procedural document designed to assist employers in complying with federal regulations prohibiting discrimination.

376. Unitarianism

Belief that employers and employees can act together for their common good.

377. Unweighted average

Raw average of data that gives equal weight to all values, with no regard for other factors.

378. Validity

Ability of an instrument to measure what it is intended to measure.

379. Value

The benefit created when an organization meets its strategic goals.

380. Value chain

The process by which an organization creates the product or service it offers to the customer.

381. Value drivers

Actions, processes, or results that are needed to deliver a desired value.

382. Variance analysis

Statistical method that identifies the degree of difference between planned and actual performance.

383. Vesting

Process by which a retirement benefit becomes nonforfeitable.

384. Veto

Action of rejecting a bill or statute.

385. Vicarious liability

Legal doctrine under which a party can be held liable for the wrongful actions of another party.

386. Vision statement

Vivid, guiding image of an organization's desired future, the future it hopes to attain through its strategy.

387. Visual learners

People who learn best by relying on their sense of sight.

388. Weighted average

Average of data that adds factors to reflect the importance of different values.

389. Weingarten rights

Union employees' right in U.S. to have a union representative or coworker present during an investigatory interview.

390. Well-being

Physical, psychological, and social aspects of employee health.

391. Wildcat strike

Work stoppages at union contract operations that have not been sanctioned by the union.

392. Worker Adjustment and Retraining Notification (WARN) Act

U.S. act that requires some employers to give a minimum of 60 days' notice if a plant is to close or if mass layoffs will occur.

393. Workforce analysis

Systematic approach to anticipate human capital needs and data HR professionals can use to ensure that appropriate knowledge, skills, or abilities will be available when needed to accomplish organizational goals and objectives.

394. Workforce management

All activities needed to ensure that the skills, knowledge, abilities, and performance of the workforce meet current and future organizational and individual needs.

395. Workforce planning

Process of analyzing the organization's workforce and determining steps required to prepare for future needs.

396. Works councils

Groups that represent employees, generally on a local or firm level; primary purpose is to receive from employers and to convey to employees information that might affect the workforce and the health of the enterprise.

397. Work-to-rule

Situation in which workers slow processes by performing tasks exactly to specifications or according to job or task descriptions.

398. Workweek

Any fixed, recurring period of 168 consecutive hours (7 days times 24 hours = 168 hours).