Date: 30/08/2010

ASSIGNMENT ON
HRM (HUMAN RESOURCE MANGEMENT)
TOPIC
HR RELATED TERMS

SUBMITTED TO:
FATHAMA FAYAZ

SUBMITTED BY:
ATEEQ-UR-REHMAN
MBA (GROUP A) 2nd SEMESTER

ROLL # 5

INSTITUTE OF MANAGEMENT SCIENCES HAYATABAD

PESHAWAR
1. Knowledge Workers

Knowledge workers are those individuals who are valued for their ability
to interpret information within a specific subject area. They will often advance the
overall understanding of that subject through focused analysis, design and
development. They use research skills to define problems and to identify alternatives.
Fueled by their expertise and insight, they work to solve those problems, in an effort
to influence company decisions, priorities and strategies. Knowledge workers bring
benefits to organizations in a variety of important ways.

A knowledge worker is anyone who works for a living at the tasks of developing or
using knowledge. For example, a knowledge worker might be someone who works at
any of the tasks of planning, acquiring, searching, analyzing, organizing, storing,
programming, distributing, marketing, or otherwise contributing to the transformation
and commerce of information and those (often the same people) who work at using
the knowledge so produced.

2. Human Capital

The set of skills which an employee acquires on job through training and
experience, and which increase that employee’s value in the marketplace. Human
capital Refers to the stock of competences, knowledge and personality attributes
embodied in the ability to perform labor so as to produce economic value. It is the
attributes gained by a worker through education and experience.

3. In-sourcing & Out-sourcing

In-sourcing is the delegating a job to someone within a company, as

opposite to someone outside of the company (out-sourcing). One reason for in-
sourcing to occur is if a company had previously out-sourced a certain task, but was
no longer satisfied with the work being done on that task, so the company could
therefore in-source the task and assign it to someone within the company who they
believe will do a better job. So its means that you hire some body with in the
organization to perform some task, or project.

So, what is outsourcing? Outsourcing is contracting with another company

or person to do a particular function. Almost every organization out-sources in some
way. Typically, the function being outsourced is considered non-core to the business.
The outside firms that are providing the outsourcing services are third-party
providers, or as they are more commonly called, service providers.

Out-sourcing refers to a company that contracts with another company to provide

services that might otherwise be performed by in-house employees. Many large
companies now outsource jobs such as call center services, e-mail services, and
payroll. These jobs are handled by separate companies that specialize in each service,
and are often located overseas.

4. Expatriate Workers

A person who is currently living and well established in a foreign country

but will be hired by another foreign country is considered an expatriate. A person
who is a come from an other country and where he live and that country’s company
hire that person for some work so he will be expatriate worker for that company. The
laws of some countries enforce some benefits for an expatriate, but even if one is not
formally considered an expatriate, which benefits can one reasonably expect from the
company.

5. Glass Ceiling

An invisible upper limit in corporations and other organizations, above

which it is difficult or impossible for women to rise in the ranks. While the phrase
glass ceiling is metaphorical, many women who find themselves bumping their heads
on it find it very real indeed. The term glass ceiling is most often applied in business
situations in which women feel, either accurately or not, that men are deeply
entrenched in the upper echelons of power, and women, try as they might, find it
nearly impossible to break through.

6. Change Agent

An individual recruited earlier to implementation of a change; must be

representative of the user population, understand the logic behind the change, and
help to communicate the excitement, possibilities, and details of the change to others
within the organization. Any individual or group that performs purposeful educative
activity designed to influence change in a practical or specific situation. Sometimes
the term is used synonymously with facilitator, instructor, leader, planner, or teacher.

The change agent also monitors the strength of the organization and provides the top
management with the potential initiatives to improve the overall strength of the
organization. The change agent is not in the organization to hide the information, the
change agent has to inform all the involved parties about the development and
potential impact on employees in the organization.

The Change Agent has to use the knowledge of the employees and common change
management techniques to minimize the costs of the transition. The HRM Function
has to identify the potential dangerous groups of employees and the initiatives to
make them more happy and stable during the change.
7. Out of box Technique

Thinking out of the box is means that you think about some thing that
other people can’t, means that you are so creative and you focus on creativity. Start
by identifying each of the elements of the "box." Then consider any alternatives that
come to mind, even crazy ones (or especially those). Most of the resulting ideas will
not be useful, but work with them and some may be made into ideas that aren't so
crazy in the end. They may lead to great innovations or just plain useful changes.

8. Employee Turn Over

Employee turnover is a ratio comparison of the number of employees a

company must replace in a given time period to the average number of total
employees. A huge concern to most companies, employee turnover is a costly
expense especially in lower paying job roles, for which the employee turnover rate is
highest. Many factors play a role in the employee turnover rate of any company, and
these can stem from both the employer and the employees. Wages, company benefits,
employee attendance, and job performance are all factors that play a significant role
in employee turnover.

9. Employee Retention

Employee retention is a process in which the employees are encouraged to

remain with the organization for the maximum period of time or until the completion
of the project. Employee retention is beneficial for the organization as well as the
employee.

Employees today are different. They are not the ones who don’t have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or
the job, they switch over to the next job. It is the responsibility of the employer to
retain their best employees. If they don’t, they would be left with no good employees.

10. Performance Appraisal

Performance appraisal is a method of evaluating the behaviour of

employees in the work spot, normally including both and quantitative and qualitative
aspects of job performance. It is a systematic and objective way of evaluating both
work-related behaviour and potential of employees. It is a process that involves
determining and communicating to an employee how the job and ideally, establishing
a plant of improvement.

It is the process of obtaining, analyzing, and recording information about the relative
worth of an employee to the organization. Performance appraisal is an analysis of an
employee's recent successes and failures, personal strengths and weaknesses, and
suitability for promotion or further training. It is also the judgement of an employee's
performance in a job based on considerations other than productivity alone.
11. Bankruptcy

Bankruptcy is a legally declared inability or impairment of ability of an

individual or organization to pay its creditors. Creditors may file a bankruptcy
petition against a business or corporate debtor ("involuntary bankruptcy") in an effort
to recoup a portion of what they are owed or initiate a restructuring. In the majority of
cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is
filed by the insolvent individual or organization). An involuntary bankruptcy petition
may not be filed against an individual consumer debtor who is not engaged in
business.

A legal proceeding involving a person or business that is unable to repay outstanding

debts. The bankruptcy process begins with a petition filed by the debtor (most
common) or on behalf of creditors (less common). All of the debtor's assets are
measured and evaluated, whereupon the assets are used to repay a portion of
outstanding debt. Upon the successful completion of bankruptcy proceedings, the
debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.

12. Business Liquidation

In law, liquidation is the process by which a company (or part of a

company) is brought to an end, and the assets and property of the company
redistributed. Liquidation is also sometimes referred to as winding-up or dissolution,
although dissolution technically refers to the last stage of liquidation. The process of
liquidation also arises when customs, an authority or agency in a country responsible
for collecting and safeguarding customs duties, determines the final computation or
ascertainment of the duties or drawback accruing on an entry.

Business liquidation means that when the business fully closed and stops its activities.
And sold its all the assets and pay its debts to its creditors.

13. Work Force diversity

“Workforce Diversity” refers to policies and practices that seek to include

people within a workforce who are considered to be, in some way, different from
those in the prevailing constituency.

Diversity not only involves how people perceive themselves, but how they perceive
others. Those perceptions affect their interactions. For a wide assortment of
employees to function effectively as an organization, human resource professionals
need to deal effectively with issues such as communication, adaptability and change.
Diversity will increase significantly in the coming years. Successful organizations
recognize the need for immediate action and are ready and willing to spend resources
on managing diversity in the workplace now.
14. Wage VS Salary

What a "Salary" looks like: $45,000 per year.

What a "Wage" looks like: $16.50 per hour

So basically, a Salary tells you how much you'll earn either in a month or a year.
While a wage tells you how much you'll earn in an hour or a Day.

Wages are what you get paid hourly for instance if you get paid like $6.00 per hour
then if you work more then 40 hours in one week then you are entitled to overtime
which is time and a half so after 40 hours you would then be making $9.00 per hour.
Salary is that amount that is fix and paid after a month, after two weeks when you get
40 hours a week 80 hours every two weeks and even if you worked 112 hours you
would only get paid for the 80 and vise versa if you only worked 60 hours you would
still get paid for 80.

15. Pay for Performance

Pay-for-Performance is The introduction of individual pay for

performance contributes to an improvement in a company's (financial) performance.
There is no doubt about the fact that motivation is the key driver of achieving good
performance within an organization. There is no doubt that we live in a money-
centered world and therefore any amount of human relations cannot compensate for a
lack of monetary reward. However, the idea of giving incentives for individual
outstanding performance is one that is being used by many businesses. This particular
strategy of optimizing individual performance, dedication and excellence within a
firm proved out to be very successful in the past. A system that rewards anyone,
regardless performance and dedication, does little to motivate and stimulate effort and
achievement. The development and implementation of a pay-for-performance system
within an organization will change the internal culture and set higher standards for
group achievements, they will start to work more closely and synergetic effects will
rise.