HRCI Glossary of Terms A-N


HRCI, PHR, SPHR, Human Resource Management, Human Resources, Strategic Planning, Society for Human Resource Management, SHRM
Sandra Reed
Flashcards by Sandra Reed, updated more than 1 year ago
Sandra Reed
Created by Sandra Reed about 8 years ago

Resource summary

Question Answer
Employee appraisal data gathered from internal and external sources (such as peers, subordinates, supervisors, customers and suppliers); also known as multi-rater feedback. 360 degree feedback
Not coming to work because of illness or personal problems; many companies calculate the rate of absenteeism of their employees, which is the average number of days they do not come to work. Absenteeism
An obligation to accept responsibility for one’s actions. Accountability
An accounting method that recognizes a company’s financial performance by recording income and expenses at the time a transaction occurs, rather than when a payment is received or an invoice is paid. Accrual
The business or organization that is buying another business. Acquiring organization
A process in which one organization buys another organization. Acquisition
A communication method that a listener uses to interpret and evaluate information from a speaker. Active listening
A solution to a specific problem that is not planned, or cannot be used in other situations. Ad hoc
A U.S. law that prevents an organization or person from discriminat- ing against an employee because of physical or mental disabilities. ADA
A process for designing training programs that has 5 steps: analysis, design, development, implementation, and evaluation. ADDIE model
A method for resolving a disagreement without going through formal legal procedures. ADR
Supporting an idea or cause, influencing outcomes. Advocacy
An activity designed to correct previous inequality that may have existed for certain groups or classes of people. Affirmative action
To place in a line or arrange in a similar way. Align
A partnership between organizations that helps both sides. Alliance
Money for a specific purpose. Allowance
A way to set the standard score for passing a test. Angoff method
To challenge an official decision (for example, in court.) Appeal
Assessments of the value or performance of something (example: job appraisals.) Appraisals
A person learning a trade or skill from a qualified person for a specific length of time. Apprentice
The process of coming to an agreement about something without using a judge or court. Arbitration
A system of tests and interviews that evaluate employee performance and help companies select the right people for jobs positions. Assessment center
A person who is on (or will go on) an international work assignment. Assignee
A job, usually in a new location. Assignment
The process of becoming a member of a team, organization, or culture. Assimilation
A teaching method where the students and teachers are online at different times. Asynchronous learning
Computer software that helps an organization recruit employees. ATS
The number of employees that leave the organization for any of the following reasons: resignation, termination, end of agreement, retire- ment, sickness, or death. Attrition
Someone with extensive knowledge of a specific subject; a person in a superior position. Authority
Gathering data to determine the accuracy of a candidate’s experience and records during employment screening. For example, verifiying personal data, checking credentials, determining any criminal activity. Background check
A method or tool that organizations use to measure the success of their strategies by looking at both financial and non-financial areas. Balanced scorecard
A way to set the salary and living allowances for employees on interna- tional assignments. Balance-sheet approach
Compensation that does not include benefits, bonuses or commissions. Base salary
Interview process to predict future performance based upon how the candidate acted in past work situations. Behavioral interview
A basis for judging or measuring something else. Benchmarks
A person who is eligible to gain benefits under a will, insurance policy, retirement plan, or other contract. Beneficiary
Workers’ entitlements in addition to base salary. Examples include: health insurance, life insurance, disability pay, retirement pension, and so on. Benefit programs
Compensation that the employee receives in addition to a base salary. Examples include: health insurance; company housing; company meals; clothing allowance; pensions; and gym membership. Benefits
The methods, processes, or activities that have proven to produce outstanding results for organizations. Best practices
“A shortened term for “biographical data””: information about a per- son’s education, background, and work history.” Biodata
A brief period in which employees cannot access or change things about their retirement or investment plans. Blackout period
A learning method that combines face-to-face teaching with online learning. Blended learning
When smart and talented people leave their own country for better opportunities. Brain drain
A method in which individuals or groups spontaneously find solutions to a problem. Brainstorming
Analyzing and classifying, such as an analysis of revenue sources or a report on attrition numbers. Breakdown (analysis)
A collapse, such as a communication or equipment failure. Breakdown (failure)
Discussions which provide detailed information. Briefings
Reuse of land previously used for industry or manufacturing. Brownfield operations
A specific area of an organization, such as marketing, accounting, or production. Business unit
Acquiring backing or sponsorship from a person or group. Buy-in
An employee’s progress through each stage in his or her career. Career development
Job advancement through a series of defined positions, from lower level to higher level. Career ladder promotion
Preparing, implementing, and monitoring the career path of employ- ees, with a focus on the goals and needs of the organization. Career management
Taking steps to improve professional skills and create new opportuni- ties. Career planning
Goals that an organization sets at a high level, which flow down as goals for departments, and then become goals for specific people. Cascading goals
“A visual tool to organize factors that contribute to certain outcomes; also called a “fishbone”” diagram.” Cause-and-effect diagram
A set of ethical principles developed for global organizations by the Caux Round Table, a group of global business leaders from around the world. Caux Principles
A team or division that uses best practices within specific area to achieve business goals. Center of excellence
A measure of the middle of a statistical distribution of data. Central tendency
Confirmation of specific achievements or characteristics given by an authority, usually by issuing a certificate or diploma after a test. Certification
The sequence of power in an organization, from the top to the next levels of authority. Chain of command
A person or department that deliberately causes change within an organization. Change agent
Regulations set by countries or legislative groups about the rights of people (different from common laws, which are set by judges.) Civil law
A part of a document, agreement, proposal, or contract that gives more detail. Clause
Using a network of remote servers hosted on the Internet to access, manage, and process data, rather than using a local server. Cloud computing
A method of developing specific skills in which a coach gives informa- tion and objective feedback to a person or group. Coaching
A written description of the principles, behaviors, and responsibilities that an organization expects of its employees. Code of conduct
An organizational structure in which employees share responsibility for the operation of a company. Codetermination
Thinking skills and mental abilities. Cognitive ability
Negotiations between countries about policies on international trade or investment. Commercial diplomacy
Laws established by court decisions and legal precedence (different from civil laws, which are regulations set by nations or legislative groups.) Common law
An international job that requires an employee to live in one country and work in another country, and to travel regularly between them (for example, an expatriate who lives in Bahrain and works in Saudi Arabia.) Commuter assignment
A number comparing a person’s salary to other salaries for the same job; the comparison ratio is calculated by taking a person’s salary and comparing it to the mid-point of other salaries (if a person earns $45,000 per year in a job where the salary mid-point is $50,000 per year, the compa-ratio is $45,000/$50,000 = 90%) Compa-ratio
Everything that an employee receives for working, including pay and non-monetary benefits. Compensation
The skills, behaviors, and knowledge that are needed to succeed in a specific job. Competencies
A list of the behaviors, skills, and knowledge needed to do well in a specific job. Competency model
Pay based on the skills and knowledge that make an employee valu- able to an organization. Competency-based pay
The steps that employees must follow when they want to express their concerns about work-related issues to their employer. Complaint procedure - see grievance procedure
Following established laws, guidelines, or rules. Compliance
To obey requests, laws, or guidelines. Comply
Method of negotiating agreements or solving problems. Conflict resolution
Combining separate companies, functional areas, or product lines; in finance, combining the assets, equity, liabilities, and operating accounts of a company with those of its subsidiaries. Consolidation
A person who is hired part-time to work under a contract or for a fixed period of time. Contingent worker
A production method in which one company hires another company to manufacture parts or goods under its label and according to its specifications. Contract manufacturing
The skills or knowledge that an organization or employee needs to do its work. Core competency
A practice in which organizations take steps to improve their employ- ees’ lives and the communities in which they operate. Corporate citizenship
The values, language, rules, procedures, expectations, and processes that affect how employees of an organization think, act, and view the world. Corporate culture
A business philosophy in which an organization helps to improve social and environmental problems. Corporate social responsibility
A business practice in which the employees of a company work with an outside organization to perform a service. Co-sourcing
The amount of money needed to recruit a new employee, which includes advertising, recruiting fees, referral fees, travel expenses, and relocation costs. Cost per hire
A financial review of various options to determine if the benefits are greater than the costs. Cost-benefit analysis
Method of saving money by divding the costs of a program, project, or business operation. Cost-sharing
An increase or decrease in pay based upon changes in economic con- ditions in a geographic location or country. Cost-of-living adjustment
Proof of a person’s earned authority, status, or rights, usually in writ- ing (for example, a university diploma, or proof of passing a profes- sional exam.) Credentials
A test, standard, or rule on which something is judged or measured. Criterion
Taking place across the geographic boundaries of 2 or more countries (for example, cross-border trade.) Cross-border
An employee who works across geographic boundaries, such as an international business traveler or a short- or long-term international assignee. Cross-border employee
Involving 2 or more cultures (such as national, regional, or profession- al cultures.) Cross-cultural
Programs that provide information to help a person live and work successfully in a different culture (for example, teaching about cultural values, beliefs and practices, communication styles, business proto- cols, and daily living resources.) Cross-cultural training
Teaching employees the skills and responsibilities of other positions in the company to increase their effectiveness and to provide greater staffing flexibility in the organization. Cross-training
Giving support and suggestions to help employees achieve greater success with different cultures. Cultural coaching
A person’s ability to function in multi-cultural situations and to inter- act appropriately with people from different backgrounds. Cultural intelligence
The difference between a person’s native culture and a new culture, and the degree of difficulty in adjusting to the new culture. Cultural novelty
The values and beliefs that shape a specific group of people (for exam- ple, organizational culture, national culture, generational culture, and professional culture.) Culture
The disorientation a person feels when experiencing an unfamiliar way of life due to immigration or a visit to a new country. Culture shock
Extra pay that employees receive for working in dangerous jobs or places (for example, environments that are hazardous or politically unstable.) Danger premium
The average number of days it takes to hire someone for open job positions. Days to fill
A human resources position that works only on HR responsibilities within an organization. Dedicated HR
A method of reasoning that forms a conclusion from general infor- mation; the opposite of inductive reasoning, where a conclusion is formed from particular facts. Deductive
A pension program which allows an employee to contribute a portion of income over time to be paid as a lump sum at retirement when the employee’s income tax rate will be lower. Deferred compensation plan
A retirement plan that tells participants exactly how much money they will receive on a specific later date (usually the day they retire.) Defined benefit plan
A retirement plan that tells participants exactly how much money they will receive on a specific later date (usually the day they retire.) Defined contribution plan
A retirement plan that tells participants exactly how much money they will receive on a specific later date (usually the day they retire.) Defined retirement plan
A method of forecasting where a group of experts provide individual opinions which are later shared in order to reach a more objective decision. Delphi technique
Statistics about groups of people that give information such as age, gender, income, and ethnic background. Demographics
Something intended for a specific person or purpose. Designated
Something that has happened, or the act of making or improving something. Development
Intending to teach or demonstrate. Didactic
“Change in value of one item compared to another (for example, a “cost-of-living differential”” is the difference between the price of goods bought in the home country compared to the price of similar goods in the host country).” Differential
A physical or mental condition that limits, but does not prevent, the performance of certain tasks (for example, a person who is blind or deaf .) Disability
Resolving conflict between people or groups (for example, lawsuits, arbitration, and mediation.) Dispute resolution
A method of education that uses TV, audio or video tapes, computers, and the Internet, instead of traditional classroom teaching, where students are physically present with their teacher. Distance learning
A method of training that allows instructors, students, and content to be located in different places. This type of training can be used together with a traditional classroom or it can be used to create virtual classrooms. Distributed training.
A combination of various people working together, often with differ- ences in culture, race, generation, gender, or religion divestiture. Diversity
Property which an organization sells or gives to another organization. For example, a company sells a business unit. Divestiture
Managing employee data and records as required by the organization or rule or law. Document retention
An organization that does business and is based in the country where it is established, unlike a multinational organization, which does busi- ness in more than one country. Domestic organization
A chart that shows relationships between variables “a graph with a vertical and horizontal axis with dots at each data point. Also called a “scatter plot”” or “dot chart.”” Dot chart
A decrease in a company’s workforce to create efficiency and profit- ability. Downsizing
Information that is conveyed by upper management to lower level employees in the organization. Downward communication
To push or move forward a plan or project. Drive
The gathering and analysis of important information related to a business acquisition or merger, such as assets and liabilities, contracts, and benefit plans. Due diligence
In the U.S., the way a government enforces its laws to protect its citi- zens (for example, guaranteeing a person a fair trial.) Due process
Services and counseling that employees receive to help them solve problems that could affect their work productivity. Examples include counseling for drug or alcohol problems or family issues. EAP
Giving monetary value to environmental factors (for example, the quality of air and water, which are not normally part of a financial valuation.) Economic valuation
A method of education where students attend classes on a computer or the internet. E-learning
To be qualified to participate in a program or apply for a job. Eligible
Services and counseling that employees receive to help them solve problems that could affect their work productivity. Examples include counseling for drug or alcohol problems or family issues. Employee assistance program
Payments or allowances that organizations give to their employees (for example, medical insurance, social security taxes, pension contri- butions, education reimbursement, and car or clothing allowances.) Employee benefits
A measurement of employees’ involvement, satisfaction, happiness, and loyalty with their employment (how hard they work and how long they stay with their organization.) Employee engagement
A manual that contains information about an organization’s policies, procedures, and benefits. Employee handbook
Interaction between employees and an organization (for example, communications, conflict resolution, compliance with legal regulations, career development, and performance measurement.) Employee relations
An organization’s techniques to keep its employees. Employee retention
A trend in human resources management that allows employees to handle many job-related tasks (such as updates to their personnel data) using technology. Employee self-service
A tax-qualified benefit plan with defined contributions that allows employees to own shares in a company. Employee Stock Ownership Plan
The percentage of a company’s employees that must be replaced at any time. Employee turnover
The image an organization presents to its employees, stakeholders, and customers. Employer branding
An organization that people want to work for because it attracts, moti- vates, and keeps good employees. Employer of choice
Benefits that an organization gives its employees in addition to salary (for example, medical insurance, payments to retirement funds, allow- ances for cars or clothing.) Employer-paid benefits
An employment agreement in which an employee can quit, or can be fired, at any time and for any reason. Employment at will
“process of turning an organization into an “employer of choice.” Employment branding
The ability for employees to manage their work, share information, and make decisions without close supervision. Empowerment
Computer software that combines information from all areas of an organization (such as finance, human resources, operations, and ma- terials), and also manages contact with people outside the organiza- tion (such as customers, suppliers, and stakeholders.) Enterprise Resource Planning
The management of products and processes that show concern for health, safety, and the environment. Environmental responsibility
Acquiring and using information about the internal and external business environments that influence an organization’s strategy. For example, determining how to respond to a talent shortage. Environmental scanning
A U.S. law that guarantees equal treatment and respect for all employees equity compensation. Equal employment opportunity
Non-cash payment that represents an ownership interest in a company (for example, stock options and restricted stock.) Equity compensation
An agreement for a person or organization to own part of a company by providing start-up funds to the new business. Equity partnership
Designed to be comfortable and avoid injuries (for example, an ergo- nomic chair or keyboard.) Ergonomic
Computer software that combines information from all areas of an organization (such as finance, human resources, operations, and ma- terials), and also manages contact with people outside the organiza- tion (such as customers, suppliers, and stakeholders.) ERP
A tax-qualified benefit plan with defined contributions that allows employees to own shares in a company. ESOP
An employee’s main responsibilities or tasks to succeed in a job. Essential functions
Filling important positions in an international organization by choosing new hires from the country where the organization has its headquarters. Ethnocentric staffing orientation
The belief that one’s own culture is the center of everything and other cultures are less effective or less important. Ethnocentrism
The ability to recognize different values and behaviors as cultural and not universal. Ethnorelativism
A U.S. term which describes employees who work however many hours are necessary to perform the tasks of their position. They do not receive overtime pay, unlike hourly workers. Exempt-level experience
An interview that HR has with an employee to get feedback about the job the employee held, the work environment, and the organization. Exit interview
“An employee who has been transferred from their country of citizen- ship (“home country””) to live and work in another country (“host country”.) Expatriate
A position in one country which is filled by a person from another country who moves there to live and work. Expatriate assignment
Things that occur outside of an organization that might affect its finan- cial health, employees, products, services, or customers (for example, political, economic, or environmental challenges.) External forces
Laws from one country that apply to that country’s citizens when they travel or live in countries where they might be exempt from some lo- cal laws. Similar exceptions can apply to companies operating abroad. Extraterritorial laws
Being exempt from the laws of the foreign country in which one is living (for example, foreign diplomats.) Extraterritoriality
Work or actions where the motivating factors are material and are measured through monetary benefits, grades, prizes, and praise. Extrinsic rewards
Interacting while in the presence of another person, as opposed to on the telephone, a webinar, or e-mail. Face-to-face
Research and analysis to determine if a project will succeed. Feasibility study
In the U.S., laws that apply in every state (as opposed to laws unique to every state.) Federal regulations
The ability of an organization to achieve financial goals, growth, and stability, while also paying expenses and debt. Financial viability
A work schedule that allows changes in the beginning and end of the work day without reducing the number of hours worked per week. Flextime
A performance measurement system which ranks employees against each other and according to pre-determined categories such as excel- lent, good, or poor. Forced distribution
Analyzing the probablility of future outcomes to help lessen uncertainty. Forecasting
When a law of an organization’s home country does not apply because it is in conflict with laws of the country where the organization is doing business. Foreign compulsion exception
An overseas investment in structures, equipment, or property con- trolled by a foreign corporation. Foreign direct investment
Extra pay that an employee receives for accepting an international work assignment. Foreign service premiums
A company that is more than 50% owned or controlled by a parent organization in another country. Foreign subsidiary
The degree to which processes and procedures define job functions and organizational structure forum shopping. Formalization
The practice of trying to get a trial held in a location that is most likely to produce a favorable result. Forum shopping
Selling a license for the use of a trademark, product, or service in order to do business a certain way and receiving ongoing payment for the license. Franchising
Payments that the employee receives, other than or in addition to a salary, such as health insurance. Fringe benefits
“An organization that has two parts: one part that focuses on the customers and the market (the “front””), and one part that develops products and services (the “back”.) Front-back structure
A percentage comparing the number of hours that an organization’s part-time employees work to the number of hours that full-time employees work. FTE
A percentage comparing the number of hours that an organization’s part-time employees work to the number of hours that full-time employees work. Full-time equivalent
A department in which people have similar specialties or skills (for example, the accounting or IT department in an organization.) Functional area
The human resources role within an organization that focuses on strategy, recruitment, management, and the direction of the people in the organization. Functional HR
A department or division where people have similar specialties or skills (for example, the accounting or IT department in an organization.) Functional structure
An anlaysis process which helps an organization compare its actual performance with its potential performance. Gap analysis
“A perception based on observations (for example, “Americans are usually friendly””). Different from a stereotype (for example, “All Americans are friendly”.) Generalization
The practice of choosing the best employees for a job, regardless of their nationality or where the job is located. Geocentric staffing orientation
An organizational model in which divisions, functions, or depart- ments are organized by location in a specific country or region. Geographic structure
An outline of how a company expects employees to behave around the world, often intended to prevent bribery and corruption. Global ethics policy
Working to promote an effective combination of different people, products, services, and systems throughout the world. Global integration
A perspective that helps people understand and function successfully in a range of cultures, markets, and organizations. Global mindset
The transfer of employees from one part of the world to another. Global mobility
An organization that views the whole world as one market, and does not divide it into separate markets by country. Global organization
The process of identifying the number and type of employees an orga- nization needs worldwide, and searching for the best candidates. Global staffing
A voluntary set of rules to help a organization advance human rights and equality. Global Sullivan Principles
Actions an organization takes to make sure it has employees with the right skills to accomplish its worldwide goals. Global talent acquisition
A group of employees who are working on the same project but who are located in different countries or come from different cultures. Global team
Changes in society and the world as a result of economic trade and cultural exchange. Globalization
“Characteristic of a company that “thinks globally, but acts locally””; when a company has a strong presence both in its own country and around the world.” Glocalization
A method for determining the salary of an employee on an interna- tional assignment; the salary is based on pay rates in the employee’s home country. Going rate approach
System of rules and processes an organization creates in order to com- ply with local and international laws, accounting rules, ethical norms, and environmental and social codes of conduct. Governance
A method of giving employees a numerical rating for having certain traits (for example, being reliable or honest.) Graphic rating scale
Start up of a new business plant or operation, usually in a new location. Greenfield operation
A cause of distress that can lead to an official complaint (for example, difficult work conditions) grievance procedure. Grievance
The steps that employees must follow when they want to express their concerns about work-related issues to their employer. Grievance procedure
A practice in which a company increases an expatriate’s base pay in or- der to cover the additional taxes the expatriate owes because of extra benefits and overseas allowances. Grossed-up income
A decision process in which a group of people agree to a decision or come to the same conclusion. Group consensus
The transfer of the positive qualities of a person or thing to related people or things. Halo Effect
Extra payment or benefits that an expatriate receives on assignment in a country where the living and working conditions are challenging. Hardship Premium
“situations in a country that cause political or economic uncertainty that make it challenging for expatriates to live and work. Often, expa- triates receive extra “hardship pay”” Hardships
The number of employees an organization has on its payroll. Head Count
An informal name for an employment recruiter, sometimes referred to as an executive search firm. Head Hunter
The practice of recruiting employees from one company to work at another company. Head Hunting
Company sponsored medical plans which help employees pay for the cost of doctor visits, hospitalization, surgery, and so on. Health Care Benefits
Expenses such as maintenance, supplies, training,upgrades, and other costs in addition to the purchase price. Hidden Costs
A culture that communicates indirectly, through the context of a situ- ation more than through words, and that builds relationships slowly (for example, Japan) High-Context Culture
Employees who have the capacity to grow into higher levels of leader- ship in the organization. “high-potential or “hi-po”
Health Insurance Portability and Accountability Act (HIPAA) protects American workers in assuring the continuation of health insurance coverage and protects their medical privacy. HIPAA
A bar graph that shows the upper and lower limits in a set of data. Histogram
Expatriate salary that stays the same while the employee is on assign- ment (for example, if an employee is relocated from Tokyo to London, he or she continues to receive the Tokyo salary along with expatriate benefits) Home-Country Compensation
Description of a group whose members are all the same or similar (for example, people from the same background and heritage). Opposite of heterogeneous. Homogeneous
Employees or other people who are citizens of the country where a person is working on an expatriate assignment. Host-Country Nationals
A situation in which an employee’s coworkers create an uncomfortable work environment, often through inappropriate sexual behavior or discrimination. Hostile Environment Harassment
A manager or department that has a relationship with HR in order to provide services to the organization. HR Partner
Function within an organization that focuses on implementing organi- zational strategy, as well as recruitment, management, and providing direction for the people who work in the organization. HR
An evaluation of the strengths, weaknesses, and development needs of human resources required for organizational performance. HR audit
A role in which human resources works closely with an organization to develop strategies and achieve business results. HR Business Partner
The part of human resource management that deals with training employees and giving them the skills they need to do their jobs both now and in the future. HRD
Technology that supports human resources functions. HRIS
Employees’ knowledge, talents, and skills that add to the value of the organization. Human Capital
Methods and tools for recruiting, managing, and keeping important employees. Human Capital Strategy
An organizational model that combines different operational, func- tional, product, and geographic structures. Hybrid Structure
A department of the United Nations that deals with human and labor rights. ILO
International standards for employers and employees that become in- ternational law when a certain number of governments have adopted them. ILO conventions
A test used to hire or promote employees to management positions. The test measures the candidate’s ability to prioritize and respond to daily tasks. In-basket exercise
A monetary or non-monetary reward to motivate an employee (for example, a bonus or extra time off) Incentive
Compensation paid for injuries, damages or unfulfilled obligations. Indemnity
Workers who contract to do specific work for other people or organi- zations and are not considered employees. Independent contractors
Cultural belief that the individual is the most important part of soci- ety; one of Hofstede’s cultural dimensions, opposite of collectivism. Individualism
A benefit that management offers to employees as motivation for producing specific results. Inducement
The relationship between the management of an industrial enterprise and its employees, as guided by specific laws and regulations. Industrial relations
Not suitable to participate in a program or apply for a job. Ineligible
People who provide business, social, or cultural data to others. Informants
Actions related to new ideas or to starting new plans. Initiatives
A foreign employee who is on a work assignment in the country where an organization’s headquarters are located. Inpatriate
Assigning a job to an internal department instead of to an outside organization; opposite of outsourcing. Insourcing
Rewards for employees that are provided immediately after the desired behavior is produced. Instant awards
To combine or bring together different parts. Integrate
An original invention or something created by the mind, which is usually protected by patents, trademarks, or copyrights. Intellectual property
Involving or representing different cultures (for example, intercultural communication, intercultural competency, or intercultural marriage) Intercultural
Making sure that employees with jobs of similar value to the organiza- tion receive equal compensation. Internal equity
Key people and influences inside an organization that shape its future (the opposite of external forces, such as the economy and competi- tors) Internal forces
A calculation of the average return each year during the life of an investment. Internal rate of return
A person who moves to a new country to work on an international assignment. International assignee
A company that has operations and services in different parts of the world. International organization
Effective social qualities for communicating and building good rela- tionships with different people. Interpersonal skills
An explanation of the meaning of something; translating spoken language. Interpretation
Someone who translates spoken language by speaking or signing. Interpreter
A restricted computer network which only allows authorized people to access the site. For example, a company intranet that only allows its employees access to its data. Intranet
Non-material motivation which comes from personal satisfaction (for examples, job status, job satisfaction or human interest) Intrinsic reward
Money and capital which is spent in order to make more money (ex- amples: stocks, bonds, real-estate) Investments
A study of the major tasks and responsibilities of jobs to determine their importance and relation to other jobs in a company. Job analysis
The skills and behaviors that will help an employee succeed in a spe- cific job. Job competencies
Written document describing an employee’s work activities. Job description
Increasing the scope of a job by extending duties and responsibilities, generally without changing pay or status. Job enlargement
A way to motivate employees by giving them greater responsibilities and more variety in their work. Job enrichment
The process of measuring how much a job is worth (for example, in order to set the salary and other benefits) Job evaluation
Groups of occupations based upon the type of work performed, skills, education, training, and credentials. Job family
The use of objective skill assessment data combined with common sense to determing the best fit for an employee to a secific job. Job matching
A strategy for introducing job candidates to the realities of the posi- tion, both good and bad, prior to making a hiring decision. Job preview
A job evaluation method that compares jobs to each other based on their importance to the organization. Job ranking
A procedure used when a company wants to hire a new employee to fill a position. Job requisition
A way to develop employees by giving them different jobs to perform. Job rotation
Learning a new job by watching another employee work. Job shadowing
A description of employee qualifications required to perform a specific job. Job specification
A way of estimating how much a person should be paid based on what they do. Job-content-based job evaluation
“when 2 or more organizations work together and share risks and rewards (also called “JV”) Joint venture
The right and power to interpret and apply the law, often within a certain geographical region. Jurisdiction
Employees that perform extremely good work and are highly valued by the organization. Key talent
Policies that reimburse employees’ losses due to kidnapping or extor- tion in high-risk areas of the world. Kidnap and ransom insurance
The process of gathering, documenting, and sharing important infor- mation to improve the performance of employees and the organization. Knowledge management
A measure an organization uses to see its progress and show what it needs to improve. KPI
A group of employees with the same job who join together to ask their employers for things such as better wages, benefits, or working conditions. Labor union
Signs that confirm the economy has already changed (for example, the unemployment rate) Lagging indicators
An economic theory that is strongly against any government interference in business affairs. Laissez-faire
Temporary suspension or termination of an employee or groups of employess because of business reasons. Layoff
The ability to influence other people or groups to achieve a goal. Leadership
Investment in programs to help current leaders become more effective and to build future leaders. Leadership development
The people in a company who will be developed to move into higher levels of leadership over time. Leadership pipeline
Signs that show the economy will change before it does (for example, a rise or fall in interest rates) Leading indicators
The time it takes for a person to accquire new information and skills and to perform successfully. Learning curve
Measuring the impact of employee training and development pro- grams on business goals. Learning effectiveness model
Computer software that administers, tracks, and reports on employ- ee development opportunities such as classroom and online events, e-learning programs, and training content. Learning management system (LMS)
The time it takes for a person to understand and retain information. Learning pace
Internet site where employees can use educational resources. Learning portal
The way people process new information and learn most effectively (example, some people learn best visually, through lectures, or by reading. Others learn best by action or doing) Learning style
An agreement for a person or organization to rent a property (leasee) from its owner (leasor) for a specific period of time and amount of money. Lease
Rating employees higher than their actual performance deserves. Leniency error
The act of applying a small investment to bring a high level of return. Leverage
A communication link between people or groups. Liaison
A written contract in which the owner of a trademark or intellectual property gives rights to a licensee to use, produce, or sell a product or service. Licensing
Work groups that conduct the major business of an organization, such as manufacturing or sales. Line management
Money or goods that a person or organization lends temporarily, usually charging interest. Loan
Salary for an international assignee that is the same as the salary that a local employee receives for a similar job. Localization compensation strategy
A job in a different culture that lasts longer than 6 months, usually 3 to 5 years. Long-term assignment
A culture that communicates directly, using words more than situa- tions, and that builds relationships quickly (for example, the United States) Low-context culture
An extra amount of money paid one time rather than on a regular basis. For example an expatriate may receive a lump sum payment to cover the extra costs of the assignment related to housing, taxes, de- pendent education, and transportation. Lump-sum compensation
An arrangement in which a person or company operates a project or business in return for a fee. Management contract
Laws which outline benefits to provide economic security for employees and their dependents. Mandatory benefits
The total number of individuals who make up the workforce of an organization. Manpower
Review of median pay for specific positions in the same labor market. Market salary survey
An evaluation that compares the salaries for particular jobs offered on the external job market. Market-based job evaluation
A physical or virtual place in which business operates. For example, the global marketplace, or the online marketplace. Marketplace
Term used in cultural studies to represent work oriented societies. One of Hofstede’s Cultural Dimensions, the opposite of femininity. Masculinity
A method of ranking human needs in a pyramid, with basic physical needs (such as obtaining food and shelter) at the bottom, and psycho- logical needs (such as creative expression) at the top. Maslow’s hierarchy
Great ability and knowledge of some subject or activity. Mastery
A system of managing staff where employees have more than one reporting relationship. For example, they could report to a direct supervisor as well as a team leader. Matrix structure
“an average determined by adding up a group of numbers, and then dividing that total by the number of numbers. For example, to calculate the mean of “10, 20, 30, 40, 50””: first, add the numbers (10+20+30+40+50 = 150), then count the numbers (5), then divide the total by the number of numbers (150/5 = 30)” Mean
“the middle number in a series. For example, in the series “13, 13, 13, 13, 14, 14, 16, 18, 21””, the median is 14, with four numbers to the left and four numbers to the right” Median
An attempt to help other people or groups come to an agreement. Mediation
When an experienced person shares knowledge with someone who has less experience. Mentoring
2 or more organizations that come together through a purchase, ac- quisition, or sharing of resources. Usually the new organization saves money by eliminating duplicate jobs. Merger
An increase in wages for meeting or exceeding the performance goals of a job. Merit increase
The lowest hourly, daily or monthly salary that employers must legally pay to employees or workers. Minimum wage
A short description of the main purpose of an organization, which does not change (unlike strategy and business practices, which can change frequently) Mission statement
An HR terms that refers to employees and their families who move from one location to another. Mobility
Extra salary paid to expatriates to encourage them to move to a new country. Mobility premium
In the following series of numbers, 8 is the mode: 6, 5, 8, 3, 7, 8, 9, 8, 4. Mode
One section of a training program which is presented alone or as part of a series of other units. Module
Working for more than one company at the same time to have a second job in addition to full-time employment. Moonlighting
The idea that there is a clear definition of what is right and wrong. Moral absolutes
Reasons or influences that lead to specific desired behavior such as commitment to a job or continuing efforts to achieve a goal. Motivation
A group of people from several cultures or ethnic groups. Multicultural
A company that has its headquarters in one country and has offices and operations in other countries; also known as a multinational corporation (MNC) Multinational organization
Combining different employee benefit programs in a multinational organization to save money and control risks. Multinational pooling
Assessing the present situation to determine the steps necessary to reach a desired future goal. Needs analysis
A practice where people of influence appoint their relatives or friends to positions in a business, even though they may be less qualified than other candidates. Nepotism
A group of people who connect with one another; a computer system that allows people to access shared resources and data. Network
Any non-profit, voluntary and independent organization that is not connected with any government, and that usually works to improve social or environmental conditions. NGO
A standard model or pattern which is considered typical. Norms
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