all citizens. In India, the focus has mostly been on undoing the ills suffered by some groups due to caste discrimination and in South
Africa or USA, on race-based discrimination. Examples of affirmative action can be found in education, employment or representation in
decision-making bodies. Typical groups targeted for affirmative action are characterized by race, gender, ethnicity or disability status.
review, and also possibly delivering the review verbally in a face- to-face meeting. Annual performance reviews are typically intended to
give mutual feedback on performance to the employee and often also to the supervisor, set new performance objectives and justify personnel
decisions, e.g. compensations and benefits.
method for a company to decrease labour costs is considered better for company morale than labour-reduction techniques, such as mass lay-off.
Some claim involuntary attrition, a synonym for laying-off and firing employees to be a form of attrition.
style, the leader solves the problem or makes the decision using information available to the leader at the time.
Kaplan and David Norton. It enables organizations to clarify their vision and strategy and translate them into action. The goal of the
balanced scorecard is to link business performance with organizational strategy by measuring results in four areas: financial performance,
customer knowledge, internal business processes, and learning and growth.
Behavioural competencies refer to personal attributes or characteristics (i.e. motives, attitudes, values) that describe HOW a job or task is performed as opposed to the particulars of the job or task. Behavioural competency measurement and appraisal attempts to determine if the behaviours actually shown by an employee are those identified by job analysis/competency profiling as those contributing to team and/or organizational success.
Also Best Practice Benchmarking or Process Benchmarking is a process used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to sector or industry. This allows organizations to develop plans adapting such best practice for increasing their performance.best practice, usually within their own for adopting and Benchmarking is considered a continuous process in which organizations should continually seek to challenge and improve their practices.
Some see benefits as a form of supplement paid by employers to employees over and above the amount of pay specified as cash compensation. For others, benefits are a portion of a total compensation package or total rewards for employees. A comprehensive, common set of benefits could include many components e.g., career development, support for work-life balance, personal security, pension schemes, health insurance, life insurance, PTO or paid time off.
Bereavement leave is paid leave that an employee is entitled to following the death of an employee’s spouse, parent, child grandparent or in-law so that the employee may attend funeral proceedings, etc. An employee may be granted additional paid working days to attend or arrange funeral services out-of-state.
A bereavement policy is the company’s practice for allowing paid and unpaid employee time off when a family member, relative, or partner dies. Bereavement time is granted for making funeral arrangements, attending the funeral and burial, paying respects to the family at a wake or visitation, dealing with the deceased’s possessions and will, and other matters that employees must address when a loved one dies.
An after-the-fact reward or payment (may be either discretionary or non discretionary) based on the performance of an individual, a group of workers operating as a unit, a division or business unit, or an entire workforce. Payments may be made in cash, shares, share options or other items of value. In the context of sales compensation, a defined, pre-established amount of money to be earned for achieving a specified performance goal. Planned bonus amounts commonly are expressed as a percent of the incumbent’s base salary, salary range midpoint, percentage of target cash compensation or incentive compensation, or a defined dollar amount.
A bonus is compensation over and above the amount of pay specified as a base salary or hourly rate of pay. The base amount of compensation is specified in the employee offer letter, in the employee personnel file, or in a contract. A bonus can be distributed randomly as the company can afford to pay a bonus, or the amount of the bonus can be specified by contract.
The whole process of identifying and differentiating an organization’s products, processes or services from another organization by giving it a unique name, phrase, shape or other distinguishing mark or for creating an image in the consumer’s mind. Branding allows a company to differentiate themselves clearly from the competition in order to bond with their customers and to create customer loyalty.
The application of marketing techniques to a specific product, product line or brand in order to manage the tangible and intangible aspects of the brand. Brand management seeks to increase the product’s perceived value to the customer and increase brand equity. It can also be said to be the process for optimising the Marketing Mix of a brand.
In a broadband pay structure, the numbers of salary grades are reduced, but the differential between one grade and the next is increased. Broad banding evolved as organizations began to flatten their hierarchies and move decision-making closer to the point where competence and knowledge exists in organizations. In flattened organizations, the broad banding structure allows more manoeuvrability for pay increases and career growth without actual promotion.
Bullying is the act of intentionally either directly or indirectly causing harm to others, through verbal harassment, physical assault, or other more subtle method of coercion like manipulation or threat of social exclusion. Bullying in the workplace may not be defined or deemed illegal in many countries but some US states have laws against workplace bullying. It is also referred to as peer abuse.
Change management is a structured approach for handling change in individuals, teams, organizations and societies and overseeing the transition from a current state to a desired future state. Typically the term is used in a business context where it refers to the planned effort of an organization to anticipate change and to manage its introduction, implementation, and consequences. Change management typically provides a comprehensive framework for managing the people side of these changes in addition to focusing on the new process, technology or public policy.
Certified Human Resource Management Professional
The Criminal Records (Clean Slate) Act 2004 establishes a clean slate scheme to limit the effect of an individual’s convictions in most circumstances (subject to certain exceptions set out in Section 19) if the individual satisfies the relevant eligibility criteria.
Coaching is a learning process to facilitate the professional development of an individual or a team in a business context. Personal Coaching is a relationship, which is designed and defined in a relationship agreement between a coach and a client and centres around the client’s interests, goals and objectives. A Personal Coach typically uses questions, reflection and discussion to help clients identify personal and/or business and/or relationship goals, develop strategies, relationships and action plans for achieving those goals.
A Collective agreement is a labour contract between an employer and one or more unions about the terms and conditions of employment of employees. Typical issues are salaries and wages, hours of work, working conditions and grievance-procedures and the rights and
responsibilities of trade unions.
The process by which an employer negotiates employment contracts and working conditions with one or more unions collectively for all
employees. In some countries employer’s organizations can negotiate on behalf of several employers.
Decisions of the Courts also known as Precedent. Distinguished from Legislation.
The concept by which women who are usually paid less than men may claim that men in comparable though not strictly equal jobs are paid more.
Some job evaluation methods, primarily point-factor methods, evaluate jobs in terms of “compensable factors”, which are skill, effort, responsibility and working conditions.
The methods and practices of maintaining balance between interests of operating an organisation within the fiscal budget and attracting, motivating, developing, retaining, and rewarding employees with desired skill sets through wages and salaries which are competitive with the prevailing rates for similar employment in the same labour markets. Typically compensation includes base elements such as wages and salaries and variables such as bonus and incentives.
Competency based pay is a compensation system that recognizes employees for the depth, breadth, and types of skills they obtain and apply in their work rather than for the position they hold. This approach to compensation attempts to address organizational needs to motivate employees and support organizational strategies.
Competence can be defined as the ability to perform a particular activity to a prescribed standard. Competence is an acquired personal skill that is demonstrated in an employee’s ability to provide a consistently adequate level of performance in a specific job function. Competence should be distinguished from competency, although in general usage the terms are used interchangeably. There tends to be a focus in the United Kingdom on competence, whereas in the United States, the concept of competency is more popular.
The strategies, skills, knowledge, resources or competencies that differentiate a business from its competitors. A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies the value proposal like higher prices.
An agreement restricting parties to the agreement (typically an employee, partner, service provider or a consultant) from disclosing confidential or proprietary information. A non-disclosure agreement (NDA), also called a confidential disclosure agreement (CDA), confidentiality agreement or secrecy agreement, is a legally binding contract between the parties. The contract outlines confidential materials or knowledge the parties wish to share with one another for certain purposes, but wish to restrict third parties from accessing these.
In a Human Resource Management context, consent means permission given towards certain ends, e.g. an employee formally gives access to personal information or performance records.
A constructive dismissal occurs when an employee resigns due to their employer’s behaviour. The employee must prove that the behaviour was unfair — that the employer’s actions amounted to a fundamental breach of contract or the law. In the UK, Employment Rights Act 1996, s. 95(1) provides that there is a dismissal if: “the employee terminates the contract under which he is employed (with or without notice) in circumstances in which he is entitled to terminate it without notice by reason of the employer’s conduct.” Examples of constructive dismissal in UK: Reduction in Pay, Demotion, and Workplace Abuse.
group operates also determines the adopted style of leadership. There are several models, which attempt to understand the relationship between style and situation, four of which are commonly seen: Fiedler’s Contingency Model, Hersey-Blanchard Situational Theory. Path-Goal Theory, Vroom Yetton Leadership Model.
temporary and contract workers, self-employed workers and independent contractors are examples.
Employment agreement. An agreement between an employer and an employee at the time the employee is hired. The contract outlines the precise nature of their business relationship specifically what compensation the employee will receive in exchange for what specific work performed and often prescribing how such performance could be measured. Contracts of service have implied terms (assumed, unspoken, essential terms), as well as explicit terms (typically in writing). Contracts also contain clauses for termination of employment, by either party, and include notice period, reasons, and compensation arrangements etc. In some countries verbal contracts are also recognised, but
written contracts are the norm.
Core Competencies are the set of the most strategically significant and value-creating skills in a job, within a discipline or field, or in an organization. These are the skills, knowledge and abilities, which employees must possess in order to successfully perform job functions. Core competencies are strategic business capabilities that provide a company with a marketplace advantage by distinguishing superior performance.
The aims and objectives of an organization. Sometimes this is formulated into a mission statement.
Compensation designed to protect the expatriate’s standard of living from cost of living differences between the host country and the home
country and to offer some protection against exchange rate fluctuations.
A strategy of trying to become the lowest-cost producer in the organisation operates in.
A method of avoiding the subjective judgements which are the feature of most ranking and rating systems. It is the keeping, by management, of a record of on-job incidents or behaviours which may be examples of [in]effective behaviour and used as background information for subsequent discussions and performance appraisals.
A form of unemployment. Cyclical unemployment rises in times recession and reduces in times of general economic prosperity.
A decision tree model is a decision support tool, which uses tree-like graphs of decisions and their consequences, resource costs and utility as well as chance events. One of the four Contingency theories of leadership – developed by Vroom and Yettor (1973).
The removal of hierarchical layers in an organisation.
Laws made by Ministers by authority of an Act of Parliament.
Is the process by which governments remove, reduce or simplify restrictions on businesses and individuals with the aim of attracting outside investment, encouraging efficiency or overall optimism. Deregulation in an economy is justified by arguing that fewer and simpler regulations will cause higher levels of competitiveness, increasing productivity and bringing more efficiency, which lead to lower prices overall.
A strategy of being unique in an industry on dimensions customers value.
The methods of delivering educational, training or instructional programs to students at locations away from a classroom. Typically this happens by using technology such as video or audio-conferencing, computers connected over the Internet, web-based applications or other multimedia applications.
The making of a distinction in favour of or against, a person based on the group, class, gender, ethnicity, sexual preferences, religion or category to which that person belongs rather than on individual performance or merit. Discriminating between employees on the grounds of merit is generally lawful and common in most democracies but discrimination on grounds such as skin colour, sexuality, ethnicity, language or religion is illegal in most countries.
Involuntary termination of employment by employer.
The process of reducing the number of people working for an organisation by terminations, retirements and spin off.
The Dual labour market theory divides the economy into two parts, called the “primary” and “secondary” sectors. Workers in the primary sectors are highly skilled and enjoy high wages, good benefits, and employment security, and they are often unionised. Workers in the secondary sectors are low skilled or even unskilled, have low wages, high turnover, job insecurity, and little chance of promotion. The model is also reflected in organizations when they operate with a small Core Labour Force and a Peripheral Labour Force.
A critical practice in mergers and acquisitions. The due diligence process is a method of investigating and evaluating the condition of a particular investment or purchase or a potential partner. Typically the financial, legal, labour, tax, IT, environment and market/commercial situation of the company is investigated. Often intellectual property, real and personal property, insurance and liability coverage, debt instrument review, employee benefits and labour matters, immigration, and international transactions are also looked into.
The use of the internet to market and sell goods and services.
See Section 6 Employment Relations Act 2000
The term is a key concept in Employer Branding and used to show the balance measurement between what an employee receives from their employer in return for their performance on the job. EVP is increasingly seen as critical to attracting, retaining and engaging quality employees.
The process of creating a desired image of the organization as a ‘great place to work’ in the mind of current employees and key stakeholders in the external market (potential candidates, clients, customers and other key stakeholders).
In an organisational context, it is the process of enabling or authorizing an individual to think, behave, take action, and control work and decision-making in autonomous ways. In a societal or political context, it is used to ameliorate the conditions of previously disadvantaged populations.
Enterprise risk management (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effects of risk on an organization’s capital and earnings, as well as financial, strategic, operational, and other risks.
An exit interview is a meeting between an employee who is leaving the organisation and a representative of the organisation, usually from the Human Resources department. The purpose is to get feedback about the reasons for leaving, the job the employee held, the work environment, and the organisation; especially what the employee would like to change. Should not be carried out by employee’s immediate superior.
Work-related rewards received for performance with value measurable in monetary or financial terms.
An employee and an employer may agree that the employment contract of the employee will terminate on a specified date or at the end of a period or on the occurrence of a specified event or at the conclusion of a specified project.
In an organisational context, it is the right to belong to a union. Overall it is the right to get together with other employees for a legal common cause or purpose without interference. Freedom of religion is a part of the freedom of association.
A method of job analysis that produces standardized occupational information specific to the performance of a particular job.
The systematic process of setting and assigning a set of specific and attainable goals to be met by an individual, group or organization.
A duty to conduct negotiations where two parties meet and confer at reasonable times on matters within the scope of their representation, with open minds and with the intention of reaching an agreement.
A method for assessing the effectiveness of human resource functions. Can be carried out internally or by engaging external HR audit systems.
A human motivation theory proposed by the American psychologist Abraham H. Maslow (1908-1970). He proposed a needs-based framework of human motivation where humans are motivated by unsatisfied needs such that lower needs must be satisfied before higher needs can be addressed.
A discrete computerised information system for HR purposes.
The activity of planning human resources usually in connection with the overall strategic planning of the organisation.
Induction is the process through which a new employee is integrated into the organisation, learning about its corporate culture, policies and procedures, and the specifics of their new job. Induction should be treated as an extension of the selection process and the beginning of a continuing staff development programme.
A synonym for laying-off and firing people, used when the organization desires to avoid using either in order to minimise bad publicity.
A family of standards and guidelines for quality in the manufacturing and service industries from the International Organization for Standardization (ISO). ISO, a non- governmental organization that forms a bridge between the public and private sectors, is the world’s largest developer and publisher of International Standards with a network of the national standards institutes of 161 countries. ISO 9000 defines the criteria for what should be measured. ISO 9001 covers design and development. ISO 9002 covers production, installation and service, and ISO 9003 covers final testing and inspection. ISO 9000 certification does not guarantee product quality but ensures that the processes that develop the product are documented and performed in a quality manner.
A written description of a job based on a job analysis, which includes information about the nature of the work to be performed, specific responsibilities and duties, and the employee skills and characteristics required to perform the job, scope and working conditions, job title and the name of the person to whom the person holding the job reports.
Is a document, derived from job analysis, which outlines the basic purpose of a job, nature of work, examples of typical duties and minimum requirements of employee skills and qualifications for doing that particular job.
Key Performance Indicators, which measure the performance of an employee.
The willingness of potential employees to travel or move to where work is offered.
Formal and informal training and professional development programs designed for management and executive level employees to assist them develop the leadership skills and styles required to deal with a variety of situations.
In a HR Context, a fixed negotiated payment, which is not typically included in an employee’s annual salary but given in place of regular pay increases.
In a HR context, a system of alternative dispute resolution or the process of intervention by an independent specialist in an employment dispute.
The term Milk round is commonly used in the UK to describe the phenomenon of companies touring universities and learning institutions each year, in order to advertise their opportunities and recruit students directly through interviews. Called recruiting presentation or on-campus presentation is the USA.
Is a brief written description of a company’s core purpose and focus, which normally remains unchanged, whereas business strategies and practices may frequently change to adapt to the changing circumstances. Also called company mission, corporate mission or corporate purpose.
The reason(s) why a person works at a particular job, in a particular role or manner and for a particular organization. Motivation consists of internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role, or subject, and to continue exerting persistent effort.
Relating to Performance Management. Both employer and employee have a mutual interest in achieving organizational objectives.
The Myers-Briggs Type Indicator (MBTI) assessment is a psychometric questionnaire designed to measure psychological preferences in how people perceive the world and make decisions extrapolated from the typological theories originated by Carl Gustav Jung. The indicators indicate psychological preferences and not ability, e.g., for performing at a certain level in a certain function.
In a business context, nepotism is the practice of showing favouritism toward one’s family members or friends in economic or employment terms. Employing friends and relatives, without regard to merit, might be considered nepotism.
A plan in which management determines the size of the bonus pool and the amounts to be allocated to specific individuals after a performance period. These use a predetermined formula and promises.
On-boarding is the process of integrating employees into their new work environment. A relatively new term, it is slightly more comprehensive than orientation as it links new employees with team members very early in the employment process and continuing after the traditional orientation program ends.
E-learning (or e Learning) is the use of electronic educational technology in learning and teaching. Also called on-line education, virtual education.
Occupational safety and health – There are laws relating to the health and safety of personnel at work.
The specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization.
The introduction of employees to their jobs, co-workers, and the organization by providing them with information regarding such items as policies, procedures, company history, goals, culture, and work rules.
Outsourcing is the process in which a company delegates some of its in-house operations/processes to a third party. Outsourcing is different from contracting. In contracting, generally the ownership or control of the operation/process being contracted lies with the parent company, whereas in outsourcing the control of the process is with the third party and not with the parent company. In a HR context, a contractual agreement between an employer and an external third party provider whereby the employer transfers responsibility and management for certain HR benefit or training related functions or services to the external provider.
Supported by legislation allowing [possibly later in 2000] 12 weeks paid leave which a new mother may share with her partner, funded by a payroll levy.
A performance appraisal strategy, where an employee is reviewed by his/her peers, who have sufficient opportunity, scope and expertise to examine the individual’s job performance.
Performance Improvement Plan is a tool to monitor and measure the deficient work processes and/or behaviours of a particular employee or an unit in order to improve performance or modify behaviour. It is used when a performance problem (usually of an employee) has been identified and ways to improve the performance of an employee are being searched.
Employees less critical to organizational success and can be expendable.
A process of identifying, evaluating and developing the work performance of employees in an organization, in order that organizational objectives are more effectively achieved and understood by employees. In its broader scope, Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management begins when a job is defined as needed and ends when an employee leaves the organization.
A total approach to managing performance, which involves setting performance aims and expectations for the organization, departments and individual employees. The performance plan describes the employee’s or unit’s preferred results, how results tie back to the organization’s results, weighting of results, how results will be measured and what standards are used to evaluate results.
Any grievance that an employee may have against the current employer or former employer. The most common types of personal grievance are dismissals, or threats of dismissal, sexual harassment, racial harassment, duress, and discrimination. Raising a Personal Grievance is the main way an employee can get compensation for unfair treatment at work, or for being unfairly dismissed.
See Affirmative action.
A questionnaire used in an organisation to collect quantifiable data about the responsibilities and requirements of jobs in that particular organisation.
Counselling provided by employer to employees who are about to retire on matters of benefits, possibilities of second careers and part-time work etc.
The Professional Development Plan outlines how the professional capabilities of the employee will be developed over a defined period. This plan may include formal training, participation in work related activities (projects or committees), access to coaching, mentoring or any other opportunities for experience to enhances the skills, knowledge or personal attributes of the employee.
The act of terminating an employment when the requirements for employees to perform work of a specific type or to conduct it at the location in which they are employed have ceased or diminished.
A payment to encourage expatriates to remain in an assignment beyond the originally agreed-upon duration. Common in the U.S. military services, where many former military personnel are employed by U.S. multinationals.
Replacement charts are a human resource forecasting technique or tool, which describes a firm’s organization structure in terms of individuals who occupy various managerial and professional positions. For each position the incumbent and potential replacements are identified along with information such as potential for advancement, experience or skills needed to qualify for next position, gender (for aid in diversity planning), and age (only for retirement planning). Replacement charts are used in succession planning.
In a HR context it is a contract clause in the employment agreement requiring key personnel or other highly skilled employees to refrain from employment with competitor organizations in a specific geographical region or in a specific business area or from becoming an entrepreneur and competing for a specified period of time after the termination of employment with the current employer. Some restrictive covenants may be so unfair, however, that a court may make them legally unenforceable.
A document an organization sends to a vendor inviting the vendor to submit a bid for a product or, service.
Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs.
A ratio of the benefit or profit derived from a specific investment compared to the cost of the investment itself. ROI measures a company’s profitability by dividing a fiscal year’s income by common stock and preferred stock equity plus long-term debt. The higher ROI, the more efficient the company is in producing profits. In a HR context, it is usually derived from the actual results or expected performances divided by the sum of salary and total human resource development investment.
Same as ROI, only related to training
The ‘right’ of management, in most legislation, to make decisions and to run an organization, determine the organisation’s mission, strategy and budget without interference from external or internal forces. Operational rights such as to assign work, direct, and hire and fire employees are also within the right to manage.
The policies, procedures and practices used in identification, analysis, assessment, control, minimization and avoidance or elimination of unacceptable risks by the organisation. Organisation typically use risk assumption, risk avoidance, risk retention, risk transfer or a combination of strategies in an effort to minimize an organization’s exposure to liability in the event a loss or injury occurs. “HR risk management” is an integral part of the process of overall business risk management where HR professionals adopt the techniques of risk management for managing the value of human capital assets within their organizations.
A concept from the French industrialist Henri Fayol who established the concept of unity of command [‘and employee should receive orders from one superior only’] and scalar chain [‘the chain of superiors ranging from the ultimate authority to the lowest ranks….. the line of authority followed by all communications’].
A one-time payment given by employers when terminating an employment.
The ratio of the number of people hired to the number of suitably qualified candidates obtained.
Six Sigma is a disciplined, data-driven methodology used to eliminate defects and improve processes and cut costs from manufacturing to transactional and from product to service.
The process of aligning human resources more closely to the strategic and operating objectives of the organization.
The databases, customer files, manuals, trademarks etc that remain in a firm once employees go home. See Customers capital.
Unwelcome sexual advances, requests for sexual favours, and other verbal or physical conduct of a sexual nature constitutes sexual harassment when submission to or rejection of this conduct explicitly or implicitly affects an individual’s employment, interferes with an individual’s work performance or creates an intimidating, hostile or offensive work environment. Sexual harassment can occur in a variety of circumstances, including but not limited to the following: The victim as well as the harasser may be a woman or a man. The victim does not have to be of the opposite sex. The harasser can be the victim’s supervisor, an agent of the employer, a supervisor in another area, a co-worker, or a non employee.
An independent company created out of an existing company by distributing new shares, sale or through a divestiture.
A spontaneous incentive given to an employee for an accomplishment, which is not measured by a standard.
The right to purchase stock of the employer at a given price at some designated time in the future. Stock Options usually come in two types: Incentive stock options (ISOs) in which the employee is able to defer taxation until the shares bought with the option are sold. Non qualified stock options (NSOs) in which the employee must pay income tax on the ‘spread’ between the value of the stock and the amount paid for the option.
Strategic Human Resource Management is a general approach to aligning the strategic management of human resources with the intentions, goals and objectives of the organisation in order to improve business performance. It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future needs.
The process of identifying an organization’s long-term goals and objectives and then determining the best approach for achieving those goals and objectives. Examples of business analysis techniques used in strategic planning are SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), PEST analysis (Political, Economic, Social, and Technological analysis) or STEER analysis (Socio- cultural, Technological, Economic, Ecological, and Regulatory factors) and EPISTEL analysis (Environment, Political, Informative, Social, Technological, Economic and Legal).
A form of disciplinary action resulting in an employee being sent home with or without pay and forbidden to come to work for a specified period of time.
Highly experiential, difficult to document in any detail, ephemeral, transitory knowledge internalized by an employee over a long period of time. The process of transforming tacit knowledge into explicit knowledge, known as codification or articulation is very difficult.
Rewards to employee for performance, distinct from regular pay, which can be easily attributed and linked to behaviour or performance. Tangible rewards usually exhibit trophy value and can be appreciated and benchmarked in terms of monetary value and features (e.g., theatre tickets with spouse or gift voucher).
Two conflicting assumptions which are behind thinking on human nature and human behavior as related to the employee and the workplace.
The expected pay for a position, including both base pay and at-risk pay. The variable portion of target compensation is based on what the employee ought to earn on average, given satisfactory performance. High performers will exceed target earnings and poor performers will fall short of the target.
The situation when the employee is officially told that his/her employment is being terminated.
The total cash remuneration plus the valued perquisites and benefits awarded employees on an annual basis. In valuing perquisites and benefits, values to facilities provided to employees that have to be claimed before being paid, and also the value of long-term benefits are usually included. Typical items included are medical expenses, vacation tickets, children’s education, terminal benefits (gratuity, provident fund, social security), share purchase plans, club memberships etc. Also known as total remuneration.
In executive compensation, total annual cash compensation plus the annualized value of long-term incentives.
The monetary and non-monetary compensation provided to employees in exchange for their time, talents, efforts and results. Total rewards include key elements that effectively attract, motivate and retain the talent required to achieve desired business results. Total rewards can be seen to include compensation, benefits, work-life balance, career development, recognition programmes. Total Rewards Statement An annual statement issued individually to each employee of an organization that quantifies the total value of his or her rewards received in the previous calendar year. Statement includes income from all compensation sources as well as the cash value of all benefits and work experience elements received. The objective of the statement is to communicate the value of employer expenditures on behalf of each employee.
A method of analysing how employee skill deficits can be addressed through current or future training and professional development programs, as well as determining the types and frequency of training/development programs required, and how to prioritize training/development.
A process dealing primarily with transferring or obtaining knowledge, attitudes and skills needed to carry out a specific activity or task.
In a HR context, turnover is the number of employees hired to replace those who left or were fired during a 12-month period.
Groups of workers who have joined to form incorporated associations relating to the type of work that they perform in order to protect their common interests and improve their working conditions.
The act of terminating an employee’s employment for a reason that can be regarded as statutorily (legally) unjustifiable or the dismissal has been carried out in an unfair way. Many countries in the world offer statutory protection against an unjustified dismissal. In England, the term used is ‘unfair dismissal’. Other terms used elsewhere are: unfair dismissal, dismissal without just cause or excuse, harsh, unjust and unreasonable dismissal.
The gap between the basic pay often based on collective agreement rate and the total remunerations actually paid. This difference is usually caused by overtime pay, bonuses, profit-share and performance-related pay.
Programmes such as on-site or subsidised fitness centres, health screenings, smoking cessation, weight reduction/management, health awareness and education which target keeping employees healthy therefore lowering costs to the employer associated with absenteeism, lost productivity and increased health insurance claims.
A person who reveals wrongdoing within an organization to the public or to those in positions of authority. In some countries, whistle blower protection is contained in law e.g., the Protected Disclosures Act 2000 in the USA.
Written documentation given to an employee describing specific disciplinary infractions, such as inappropriate conduct, poor performance or violation of work rules/policies. Such documentation normally includes information regarding past infractions and what action will be taken if employee fails to improve.
The measurement of how employees spend their time and the number of work units being produced by employees over a specific period of time. This is accomplished by randomly observing employees while they are performing their jobs and then using mathematical formulas to determine the sample size.
An employment contract or agreement, either oral or in writing, that forbids employees from joining or continuing membership in any labour union as a condition for continuing or obtaining employment.
A plan design feature that establishes a pre- assigned class, ratio, or ranking for a specified class of employees who will receive zero bonus awards.
A budgeting system that starts with no authorized funds as a starting point. In a zero- based budget, each activity or program to be funded must be justified every time a new budget is prepared and resources are allocated accordingly.