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A
Absenteeism The failure of an employee to report to work when scheduled to do so.
Abusive discharge Also called wrongful discharge, the termination of an at-will employee
for engaging in protected activity or for refusing to commit an illegal act.
Accidental death and Insurance coverage for loss of life, limbs, or eyesight resulting from a
dismemberment work related accident.
insurance (AD&D)
Accommodation A change in workplace methods, procedures, equipment, schedules, or
plant arrangement that facilitates the performance of job tasks by
workers with special needs.
Adverse impact A situation in which a significantly higher percentage of members of a
protected group (African-Americans, Hispanics, Women, Native
Americans, and others) in the available population are being rejected for
employment, placement, or promotion.
Affirmative action Gives preferential treatment in hiring, recruitment, promotion, and
development to groups which have historically been discriminated
against.
Age Discrimination and Federal antidiscrimination law to protect job applicants and employees
Employment Act (ADEA) age 40 and over from employment discrimination due to their age. This
act also includes discrimination involving pay, benefits, and other
conditions of employment.
Agency fees Payments to firms that refer prospective job applicants to employers
with vacant positions.
Agency shop A situation, specified in a union security agreement, in which all
employees pay union dues and fees whether or not they are union
members. Refusal to pay results in employee termination.
Allegation An unproved statement.
Alternate payee An employee’s spouse, child, or other dependent, who pursuant to a
Qualified Domestic Relations Order (QDRO) alternative dispute
resolution (ADR)
A method used to resolve a dispute out of court. An adr can be
beneficial to employers because it usually costs less and is less
adversarial than going to court.
Americans with Federal antidiscrimination law designed to remove barriers which
Disabilities Act (ADA) prevent qualified individuals with disabilities from enjoying the same
employment opportunities available to those without disabilities.
Annuity A payment of money that is made yearly for the life of the person who is
entitled to the payment.
Arbitration A method of dispute resolution in which the parties agree to present
evidence and arguments to a neutral umpire (or team of umpires) and
abide by the umpire's decision.
Assessment Use of an instrument to determine traits, skills, past behaviors in order
to relate them to current requirements.
Assessment center A selection technique that uses simulations, tests, interviews, and
observations to obtain information about candidates.
Assessment instrument A questionnaire which has been designed to elicit specific choices or
alternatives in order to predict behavior, personality, or skill preferences.
Assumption of risk A legal doctrine that places responsibility for injury on the injured
person because the person knowingly undertook an action involving a
risk of harm.
Attitude survey A set of written questions and responses completed by employees
expressing their reactions to employer policies and procedures.

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Attrition Loss of employees (as a result of resignation, retirement, death) who

are not replaced by their employer, thus reducing the size of that
employer's workforce.
Audit An investigation, especially a review of records and procedures, whose
purpose is to assess compliance with a legal or practical requirement.
Autonomy The degree to which the job provides substantial freedom,
independence, and discretion to the individual in scheduling the work
and in determining the procedures to be used in carrying it out.
B
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Backpay Earnings granted to an employee, usually by the court, which represent
the difference between wages already, paid the employee and higher
wages to which he or she was entitled but did not receive. (back pay is
often awarded in cases of proven discrimination.)
Bankruptcy Insolvency; inability to pay debts.
Bargaining unit A group of employees which, by reason of the similarity of their jobs,
form a unit appropriate for bargaining with management on questions of
wages, benefits, and working conditions.
Behavior modeling Participants learn by observing a role mode behavior. The fundamental
characteristic of modeling is that learning takes place by observation or
imagination of another individual’s experience.
Behavioral observation A method similar to the BARS that uses the critical incident technique to
scale (bos) identify a series of behaviors that describe the job. A 1 (Almost Never) to
5 (Almost Always) format is used to rate the behaviors.
Behaviorally anchored A rating scale that uses critical incidents as anchor statements placed
rating scale (bars) along a scale. Typically 6 to 10 performance dimensions, each with 4 –
6 critical incident anchors, are rated per employee.
Benchmarking A program in which employees send their employees to visit other
companies to discover other ways to identify and improve practices
within the parent company.
Bfoq (bona fide A specific job-related requirement which is legitimate and considered a
occupational precursor to hiring a candidate for a position. Race cannot be a bfoq, but
qualification) gender, age, religion or national origin may be claimed as a bfoq
provided that reasonable proof exists for such a claim.
Blacklist The act of communicating information about a person, particularly
information about union activities, that is intended to interfere with the
person's ability to find employment.
Blind ad A newspaper or magazine advertisement for employment, requesting
replies to any address which does not reveal the hiring company.
Bona fides Good faith; authenticity.
Boycott A primary boycott finds union members not patronizing the boycotted
firm. In a secondary boycott, a supplier of a boycotted firm is threatened
with a union strike unless it stops doing business with the firm.
Secondary boycotts are illegal under the taft-hartley act.
Broad banding The technique of consolidating salary grades into wider or broader
bands to create more flexible pay structures.
Bumping The reassignment of a senior employee to a position vacated by a
junior employee as a result of a reduction in workforce.
Bureau of labor Department within the Federal Department of Labor which is
statistics (bls) responsible for collecting and reporting national statistics for wage and
salary surveys.
Business necessity Specific job-related requirement which is considered by the employer to

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be fundamental to the mission of the business; sometimes used as a

defense against discrimination claims regarding employee selection.
C
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Cafeteria benefits A benefit plan in which an employee can pick and choose among a
number of fringe benefits up to a designated dollar amount in addition to
the universal benefits granted to all employees.
Cafeteria plan See cafeteria benefits
Carpal tunnel syndrome A painful disorder of the wrist and hand caused by the repeated
performance of some manual task such as typing or meat-cutting.
Career Individually perceived sequences of attitudes and behaviors associated
with work-related experiences and activities over the span of an
individual’s work life.
Career path A sequence of positions through which an organization moves an
employee.
Career stages The different stages that individuals go through in their careers,
normally divided into four stages – education (or pre work), initial work,
mature work, and retirement (or post work)
Caveat A warning.
Central tendency error A rating tendency to give rated employees an average rating on each
criterion.
Certified benefits A Compensation and Benefits professional who has met the rigid
professional (cbp) certification program of the American Compensation Association.
Certified employee A benefits professional who has met the rigid certification program of
benefits professional the International Benefits Association and the Wharton School.
(cbp)
Chain of command The managerial or supervisory reporting function within an organization.
Civil rights act of 1964 – The major federal civil rights act which prohibits discrimination in
title vii employment due to race, color, religion, gender, or national origin.
Civil rights act of 1991 Federal civil rights law that provides for compensatory and punitive
(cra) damages for intentional discrimination and also allows jury trials.
Classification system A job evaluation method which groups jobs together into a specific
grade or classification, especially in compensation.
Closed shop A situation in which a new employee must be a union member when
hired, primarily used in the construction, maritime, and printing
industries.
Collective bargaining A procedure for attaining agreement with an employer on matters
involving wages, benefits, and working conditions by a group of
employees or their representative
Coinsurance Insurance benefits plans which require that the insured pay some
portion of covered claims expenses, for example either a set fee ($25
co-pay) or a percentage of the expense (20% co-pay)
Compensable factors A term used in job evaluation as part of the compensation design which
denotes criteria for comparing relative between or among jobs. Most
frequently used are skill, education, effort, responsibility, working
conditions, and hazardous working conditions.
Compensatory damages Money that is awarded in a judicial proceeding to compensate a party
for injury to person or property.
Comparable worth The belief that employees in comparable positions should receive equal
pay – the concept of equal pay for equal work.
Comparable worth A theory of pay structures requiring that jobs, which though not similar
theory in duties, are of comparable economic value to the employer, should

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carry equal rates of pay. Some states require that comparable worth
jobs be paid equally, particularly in the public sector.
Compressed work week A work schedule in which a trade is made between the number of hours
(cww) worked pre day, and the number of days worked per week, for example,
four ten-hour work days.
Conciliation The settlement of a conflict in an amicable fashion.
Consolidated omnibus A Federal law which covers employee benefits. A major effect of the act
budget reconciliation is the requirement of employers to provide continuation of employer’s
act of 1985 (cobra) group health benefits for terminated employees and their eligible
dependents under specific conditions.
Construct validity A relationship between the underlying traits inferred from behavior and
a set of test measures related to those traits.
Content validity The degree to which a test, interview, or performance evaluation
measures skill, knowledge, or ability to perform.
Contingency plan A plan for dealing with emergencies and extraordinary situations of
various kinds.
Contingency search A search firm which collects its commission upon the hire of one of its
presented candidates. Contingency search firms usually work without a
contract.
Contributory negligence A legal doctrine that places the responsibility for injury upon the injured
person because of that person's own negligence.
Core work time A period of time in a flextime work schedule in which all employees in a
particular unit or group must be at work.
Cost of living A salary / wage increase for all employees or for a specific class of
adjustment employees due to inflation.
Criterion-related validity The extent to which a selection technique is predictive of or correlated
with important elements of job behavior.
Critical incident rating The system of selecting very effective and ineffective examples of job
behavior and rating whether an employee displays the behaviors
specified in the critical incidents.
D
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Damages Money or other compensation recovered in the courts by any person
who has suffered a loss.
Data base A collection of information that is stored electronically and that can be
retrieved by the use of a computer.
Davis-beacon act A Federal law which applies to employers with government contracts
and which mandates that employees be paid at prevailing wages.
De facto In fact, in deed, actually.
Decertification election An election in which employees that are represented by a union vote to
drop union representation.
Deductible Amount of money insured must pay before insurance benefits are
payable.
Defamation Any statement that has been communicated to another and that tends
to hold a person up to contempt, ridicule, or ill-repute. A defamatory
statement forms the grounds for a lawsuit if it is untrue. A defamatory
statement is a libel if it is written and a slander if it is communicated
orally.
Direct deposit A program which allows employees to authorize the employer to make
automatic deposits of their paychecks directly into their savings or
checking account in any financial institution.
Disability A physical or mental impairment that substantially limits one or more of

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a person's major life activities.

Disclaimer A statement repudiating or renouncing a claim or representation.
Disparate impact A disproportionate adverse effect on a particular disadvantaged group.
Diversity The overall process of assimilating, training, promoting, managing, and
increasing the number of minority personnel into the workforce.
Downsizing A euphemism used for cutting back on the number of employees; a
layoff of workers.
E
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Eap (employee Employer-sponsored program(s) designed to provide counseling to
assistance program) identify and rectify problems concerning health, marital difficulties,
also referred to as alcohol and drug abuse, stress, financial, legal, emotional, or other
(employee assistance things that may affect an employee's work performance.
plan)
Early retirement Retirement that commences before the designated standard age of
retirement, which is usually accompanied by lesser pension benefits. In
some cases, however, companies will offer early retirement programs as
a way to avoid layoffs, and for purposes or incentive, benefits are not
diminished.
Eeo-1 form Form required by the Department of Labor for employers with 100 or
more employees. Summarizes workforce by job category, race, and
color.
Employee retirement A Federal law which regulates private employer pension, retirement,
income security act of and welfare plans.
1974 (erisa)
Employee stock A type of profit-sharing program where employees receive stock
ownership plan (esop) ownership based on a percentage formula relating to annual company
profitability. Eligibility is usually determined by length of service, with the
actual number of shares being determined by a ratio of the employee’s
annual wage or salary.
Employment-at-will An employment arrangement that grants employers the right to fire
employees for any reason, or for no reason at all, and likewise, allows
employees to quit their jobs at any time for any reason with or without
advance notice.
Empowerment The act of giving employees more power and authority to make
decisions that directly affect their job.
Equal pay act of 1963 An amendment to the Fair Labor Standards Act of 1938 which prohibits
gender-based wage discrimination between men and women who are
performing essentially similar work.
Ergonomics Pertaining to an arrangement of physical tasks in such a way as to
accommodate the functions and limitations of the human body.
Equal pay theory The theory that men and women should be paid equally for performing
equal work, made into law by the federal Equal Pay Act.
Essential functions Duties that are basic or fundamental to a position; under ADA,
reasonable accommodation must be made in order for a qualified
individual with a disability to perform the essential functions of a
position.
Executive order 11246 Requires companies which have federal contracts or subcontracts to
implement written affirmative action plans to increase minority and
female representation in the workplace.
Experience rating A figure used by workers' compensation insurers and state
unemployment authorities in calculating premium rates or contribution

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rates that make appropriate adjustments to reflect an employer's claims

history.
Exempt employee Employees who are working in positions which are considered exempt
from the Fair Labor Standards Act of 1938 (FLSA). Examples include –
directors, managers, supervisors, outside salespeople, and contract
employees.
Exit interview An interview with an employee who is leaving the company; such a
meeting gives employer opportunity to pass along information regarding
health care coverage and other benefits. The employer is also able to
inquire the employee as to their reason for leaving and their opinion of
the company, which may be helpful to the employer regarding future
employee policies and relations.
External equity Term primarily associated with compensation design, whereby
company salary and wages are equivalent with the prevailing salary and
wages in the local area.
F
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Factor comparison A job evaluation method which uses a factor-by-factor comparison. A
method factor comparison scale, instead of a point scale, is sed. Five universal
job factors used to compare jobs are
Physical effort, mental
effort, working conditions,
responsibilities, and skills.
Fair employment A manner of operating in which there is no discrimination on the basis
practice of factors that do not apply to job performance- for example, race,
gender, religion-in employment practices.
Fair employment A state or local governmental agency. Charges of discrimination under
practice agency (fepa) Title VII and ADA must be deferred to state or local FEPA’s for
processing, investigation, and adjudication.
Fair labor standards act A Federal law which mandates minimum wage, overtime pay, equal pay
of 1938 (flsa) for men and women in the same type of job, establishes record-keeping
requirements, and prohibits certain child labor.
Family and medical A Federal law which requires private sector employers with 50 or more
leave act of 1993 (fmla) employees, and public agencies to provide up to 12 weeks of unpaid
leave to eligible employees for certain specified family and medical
reasons; to maintain preexisting group health insurance during periods
of FMLA leave; and, to restore eligible employees to their same or
equivalent positions at the conclusion of their FMLA leave.
Federal insurance Requires payroll withholding and matching employer contributions to
contributions act (fica) the social security program.
Fee for service Most traditional means of compensating health care professionals for
medical / surgical services performed. Fees vary according to
procedures performed, or the usual, customary, and/or reasonable fees
scheduled by the insurance provider.
Feedback The degree to which carrying out the work activities required by the job
results in the worker receiving direct and clear information about the
effectiveness of his/her performance.
Fiduciary A trustee; a person to whom money or property had been turned over,
to be managed and taken proper care of for the benefit of others.
First quartile Associated with compensation which is the amount of compensation
that falls in the range between the minimum wage and the half-way point
between the minimum and the median. This area is where most new

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hires compensation is derived.

Flexible spending An arrangement where employees are permitted under IRS rules to
account (fsa) contribute specific percentages of pretax wages to an individual
spending account for reimbursement of eligible child care or health care
expenses.
Flextime (also flexible A flexible working arrangement where the employee is present during
work time) core (critical) working hours but has the ability to arrive and/or depart at
different times each day, while still meeting the agreed upon number of
hours worked each week (usually 40).
Flow chart A document that shows the progression of a product, a piece of
information, or a delegation of authority from one person or department
to another within an organization.
4/5ths rule Discrimination is likely to occur if the selection rate for a protected
group is less than 4/5ths of the selection rate for a majority group.
Fourth quartile In compensation, a salary or wage which falls in the range between the
maximum and the point which is half-way between the mid-point and the
maximum. This range is hardly ever used in hiring new hires and is
reserved for performance awards and career progression.
Fsa (flexible spending An account set up for employees by an employer as a benefit plan, to
account) which employees contribute a portion of their gross earnings each
month. Employees can make withdrawals from these accounts to pay
for specified expenses (but lose any funds they do not spend at the end
of the year).
Functional job analysis A job analysis method that attempts to identify what a worker does in
(fja) performing a job in terms of data, people, and things.
G
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Garnishment A legal proceeding that takes property or money from a person to
satisfy a debt. (for example, an employee may have money
automatically deducted from his or her check until a debt is repaid.)
Good faith Genuineness; sincerity.
Grading system See classification system
'Grandfather' clause Language in a statute or regulation that exempts an otherwise covered
entity because of its status prior to the adoption of the statute or
regulation.
Green card Another term for an INS Alien Registration Receipt Card (Form I-151 or
I-551), an immigrant visa that allows an alien to become a permanent
resident of the U.S. and lawfully secure work
Green circle rate A salary rate that is below the minimum for its salary range.
Grievance A complaint about a job that creates dissatisfaction or discomfort for the
worker.
Gross misconduct Behavior which causes someone to lose their job as the result of
actions that are more serious than poor performance or judgment.
H
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Halo effect or halo error A rating error that occurs when a rater assigns ratings based on an
overall impression (positive or negative) of the person being rated.
Harshness rating A tendency to rate everyone low on the criteria being evaluated.
tendency or harshness
rating error
Honesty test Any of a number of psychological surveys that attempt to expose an
individual's tendency to be dishonest.

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Hostile environment A term used for the result of sexual harassment that creates an abusive
or intimidating working environment for the person being harassed.
Hot cargo agreement The employer permits union members to avoid working with materials
that come from employers whose employees are on strike. This type of
boycott is illegal.
Human resources Computerized personnel management and records keeping system
information system which covers all major HR operations, usually encompassing
(hris) compensation and benefits, manpower planning, payroll administration,
timekeeping, training, government required reporting, etc.
Human resource The process which provides adequate human resources to achieve
planning organizational goals. It includes forecasting future needs for employees
of all types, identifying current capabilities and limitations, and
determines the numbers of specific types of employees who need to be
recruited or phased out of the organization and when.
I
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I-9 form The employment eligibility form which must be completed by new
employees and employers certifying employment eligibility in
compliance with U.S. regulations.
Immigration and reform A Federal regulation which controls illegal immigration to the U.S. and
control act of 1986 prohibits employment of unauthorized foreign nationals.
Impairment The state of being physically, mentally, or psychologically damaged or
weakened.
Implied contract A legal relation in which mutual obligations may be inferred, without
formal agreement, simply from the conduct of the parties and their
mutual understandings and expectations.
Indemnity Protection against loss; surety; guarantee; insurance. Verb - indemnify
Independent contractor A person who performs work for another person but is not that person's
employee.
Indexing The periodic and automatic adjustment of employee compensation to
account for inflation in the economy.
Injunction A court order to refrain from particular conduct.
Insolvency The state of having insufficient assets to satisfy debts.
Internal equity A term primarily associated with compensation design whereby all
jobs / job classifications of a similar nature are compensated at an
equivalent rate.
Interquartile range In an ordered series of numbers (pay scale or range for example), the
distance between the third quartile and the first quartile. It contains the
middle 50 percent of data along with the arithmetic mean.
J
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Job analysis The process of defining a job in terms of tasks or behaviors and
specifying the education, training, and responsibilities needed to
successfully perform the job.
Job description A description of what a specific job entails along with employee
characteristics necessary to successfully perform it.
Job enrichment A method of designing a job so that employees can satisfy needs while
performing the job.
Job evaluation The formal process by which the relative worth of various jobs are
determined for pay purposes.
Job family A group of two of more jobs that have similar job duties.
Job loss A condition in which there is no work and the individual is sent home

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permanently.
Job posting A listing of job openings that includes job specifications appearing on a
bulletin board or in a company publication.
Job ranking A job evaluation method often used in smaller organizations, in which
the evaluator ranks jobs from the simplest to the most complex /
challenging.
Job search The set of activities a job candidate initiates to seek and find a position
which will be comfortable and rewarding.
Job sharing A situation in which two or more part-time employees share on job. The
job itself is usually a full time job; however, the position is filled with two
or more part-time employees.
Job specification The traits and experience necessary to perform a job.
K
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L
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Labor-management Defines labor relations rights of both employees and employers,
relations act of 1947 prohibits unfair labor practices, and specifies collective bargaining rights.
(taft-hartley act)
Labor relations The continuous relationship between a defined group of employees
(e.g., a union or association) and the employer.
Landrum-griffin act A federal labor law passed in 1959 that defines the rights of union
members. It regulates and audits the internal affairs of unions.
Leave allotment Refers to the total number of weeks of leave eligibility granted to an
eligible employee per year under applicable leave laws; i.e., the leave
allotment under federal law is 12 weeks per year to eligible employees.
Leave bank (sometimes referred to as a paid time off or PTO bank) 1. A lump
disbursement of a certain number of days or hours of leave, from which
an employee can draw time and self-designate it as vacation time, sick
time, personal leave, etc; 2. A bank maintained by the employer to
which employees can "donate" vacation or sick time, to be used by co-
workers with catastrophic illnesses requiring extensive time off the job.
Some employers maintain leave banks on an ongoing basis; others
establish such banks on a case-by-case basis when a particular
employee is in need of extended leave.
Leniency rating error The tendency to rate everyone high or excellent on every criteria.
Liability A debt; a disadvantage; vulnerability to a lawsuit.
Libel A defamatory statement that is published (i.e., disclosed to another
person) in writing.
Liquidation Conversion to money; sale of assets.
Lockout A work stoppage by the employer in connection with a labor dispute; or,
the securing of an item of equipment, especially electrical equipment
during repair and maintenance, so that the equipment cannot be
activated accidentally.
Lump-sum distribution Payment of an entire amount due, all at one time (as opposed payment
in installments or annuity payments).
M
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Managed care A health care delivery system which stresses preventive health care in
a group practice environment. Major deliverers include ppo, hmo, and
ipa systems.

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Management by A management technique in which management and employees

objectives (mbo) collaboratively set goals for the ensuing performance review period.
Management by walking A theory that managers cannot possibly do an effective job of
around (mbwa) supervising unless they leave their office or desk to observe and collect
data and impressions by informal visits to worksites.
Management The process by which managers gain experience, skills, and/or
development attitudes necessary to become or remain successful organizational
leaders.
Material safety data A document containing information about the properties and safe
sheet (msds) handling of a substance, especially, a hazardous substance.
Median The middle number in a set or numbers arranged from highest to
lowest.
Mediation A method of dispute resolution in which the parties present evidence
and arguments to an impartial third party, whose obligation is to help
bring about an agreed settlement.
Merit pay Method of compensating employees based on established company
standards of performance. This system has principally replaced the
older step-grade system or systems of automatic promotions based on
tenure or seniority.
Merit system A system used by federal and state governments for hiring and
promoting governmental employees to civil service positions, on the
basis of competence.
Mid point The middle pay rate in a compensation system for a specific pay scale,
it can be determined by subtracting the minimum wage from the
maximum, then dividing by two, and adding the result to the minimum.
Multiculturalism Political or social philosophy promoting cultural diversity. It generally
relates to the contributions of women, non-europeans, asians, african-
americans, and hispanic ancestry.
Multirater assessments A performance rating technique which includes evaluations from other
persons in addition to the employee’s immediate superior. Input may be
solicited from co-workers, subordinates, or even customers.
N
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National labor relations See Wagner Act
act of 1935 (nlra)
National labor relations Federal Agency created to enforce the Wagner Act.
board (nlrb)
National origin A term that refers to the country in which a person was born or from
which his or her ancestors came; discrimination based on national origin
is considered a violation of an individual's civil rights.
Negligence The failure to use proper care.
Negligent referral A failure by the former (or soon to be former) employer of an employee
to inform future potential employers of job-related negative information
regarding that employee, when acting as a reference on their behalf.
Nepotism The employment of relatives and friends of the employer and of other
employees.
No-fault leave policy A leave policy in which employees are automatically terminated after
they have been on leave for a certain amount of time, regardless of the
reason for taking the leave.
Non-compete agreement An agreement between the employer and an employee that if the
employee leaves the company, the employee will be barred from
working for a competing company, work within a certain distance of the

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employer, or both, for a specified time.

Non-exempt employee An employee in a position which requires compliance with the overtime
and minimum wage requirements of the Fair Labor Standards Act
(FLSA).
O
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Occupational safety and Federal legislation which prescribes occupational safety and health
health act of 1970 (osha) requirements and standards for employers along with mandatory
reporting requirements.
Old age, survivors, Federal legislation which primarily enables the operation of the Social
disability, and health Security and Medicare programs.
insurance program
(oasdhi)
Open shop A work situation where a union is not present and there is not active
campaign to keep a union out.
Outplacement Providing help to terminated employees in finding new employment.
Outsourcing To subcontract a service or function which may have been performed or
conducted internal to the organization at one time.
P
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Part-time employee A job in which the employee works less than 35 hours per week
(employment)
Pay class A convenient grouping of a variety of jobs that are similar in their work
difficulty and responsibility requirements.
Percentile A numerical value which defines the value below which a given
percentage of the data fall. It is primarily used in wage and salary
surveys and ranges.
Pecuniary Monetary, financial, and usually used to identify the type of damages
awarded to a plaintiff.
Peer review A procedure for handling employee grievances in which a committee
consisting of representatives of employees and management hear and
decide all grievances.
Per diem Per day; an amount of money that is payable per day.
Performance analysis A systematic procedure that is used to determine if training is needed to
correct behavior deficiencies.
People principle Principle practiced by a company when it shows genuine respect for its
employees and recognizes dignity of work as well as the dignity of the
individual. Employees, even in our modern era of eroding employee
loyalty, will still respond favorably to a management that demonstrates
sincere concern for their welfare.
Performance evaluation The activity used to determine the extent to which the employee is
effectively performing the job.
Performance The entire collection of performance analysis, evaluation, goal setting,
management system deficiency correction, and rewards for outstanding performance in an
organization.
Piecework A method of employee compensation in which the employee is paid for
output (by the "piece") rather than for time (by the hour).
Point factor evaluation A job evaluation system which uses numerical values to compare and
evaluate the relative worth of different positions.
Point of service plan A health insurance plan which enables the insured to have the option of
(pos) either managed care services or out-of-network care. Out-of-network
services may require either coinsurance or deductibles since they are

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usually more expensive.

Point system The most widely used job evaluation method. It requires evaluators to
quantify the value of the elements of the job.
Portability The right of an employee to transfer pension credits from one employer
to another.
Position The responsibilities and duties performed by an individual, along with
the budgeting of sufficient dollars to pay employee compensation and
benefits.
Position control system An automated computer-based system which enables management to
(pcs) plan, budget, and control staffing.
Polygraph An electrical apparatus that purports to identify untruthful responses by
measuring various physiological functions during questioning.
'Portal-to-portal' Short for the Portal-to-Portal Act, which relieved employers of the
obligation to pay employees for time spent traveling to and from the
worksite.
Preexisting condition A condition (usually physical) of an employee that exists prior to the
commencement of health care under a group medical plan, which is
oftentimes refused coverage.
Preferential shop The union is recognized and union members are given preference in
some areas. This action is a violation of the taft-hartley act.
Premium An amount of money paid for the purchase of an insurance policy,
usually calculated in proportion to the risk insured against.
Premium sharing Employees share a percentage of the cost of group monthly premium
costs with their employer. This is primarily used in covering eligible
dependents.
Prevailing wage The wage, as determined by the government, that prevails among
workers in a particular occupation and geographical area and that must
be paid to workers in similar occupations on projects that are performed
under government contracts.
Preventive program A program within an organization to achieve a high level of employee
wellness and to decrease health impairment / maintenance costs.
Programs typically involve – health exams, stress management, stop
smoking programs, and physician recommendations, and may include a
physical exercise program.
Prima facie Sufficient, in terms of evidence, to establish a fact.
Professional in human A certification awarded to HR professionals who pass a comprehensive
resources (phr) examination and meet the stringent requirements for both education and
experience specified by the Society for Human Resource Management
(SHRM) and the Human Resource Certification Institute (HRCI).
Progressive discipline A specific set of procedures regarding employee discipline in which
disciplinary actions "progress" in their severity at each instance where it
becomes necessary to impose it. For example, the first step could be
one or more verbal warnings, followed by one or more written warnings,
followed by suspension, and finally termination. Practicing consistently
applied progressive discipline thwarts both hasty terminations and/or
playing favorites on the part of management as well as claims of
discrimination on the part of employees.
Prohibited factor That which cannot be used as criterion for making an employment
decision, such as the race, gender, or religion of the candidate.
Proprietary information That which belongs exclusively to a person or company.
Protected class A group that is covered by antidiscrimination or fair employment
practices laws, such as minorities, women, the disabled, etc.

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Protected concerted Section 9(a) of the National Labor Relations Act that provides that any
activity employee or group of employees has the right to present grievances to
the employer whether or not that employee is represented by a labor
union.
'Public policy' A societal objective or interest; a legal right or obligation, expressed in a
constitution, statute, regulation, or judicial decision, that benefits the
general public.
Punitive damages Money that is awarded to a plaintiff in a judicial proceeding to punish a
defendant for a wrongful act.
Q
Return to top
Qualified beneficiary A term used by COBRA that refers to an employee or his/her spouse
and/or dependent children when they are eligible to receive coverage
under COBRA because health care coverage was lost as the result of a
qualifying event.
Qualifying event A term used by COBRA that refers to specific events that result in an
employee or his/her spouse and/or dependents children's loss of health
coverage, such as divorce, layoff, or termination. Such events "qualify"
that individual or individuals to be covered under COBRA.
R
Return to top
Realistic job preview A briefing that provides a job candidate with accurate and clear
information about the attractive and unattractive features of a job. Rjp’s
are as realistic as possible in order to honestly establish realistic job
expectations.
Reasonable A change in workplace methods, procedures, equipment, schedules, or
accommodation plant arrangement that facilitates the performance of job tasks by
workers with special needs, without exorbitant cost.
Recall The act of bringing employees back to work after a temporary layoff.
Usually, recall will proceed on the basis of seniority- those with the most
seniority will return to work first- or on a "last to be fired, first to be hired"
basis.
Recency error A rating tendency to use the most recent events to evaluate an
employee’s performance instead of considering the whole rating period.
Red circle rate A salary above the maximum for the salary range.
Reengineering A procedure whereby a company reorganizes its work process to more
effectively create its product or service for the customer. Reengineering
often eliminates layers of jobs.
Rehabilitation act of Federal legislation which prohibits employers with federal contracts
1973 from discriminating against the handicapped. It requires employers to
have written affirmative action plans for hiring the handicapped.
Release A document that relieves a party of legal responsibility toward the
signer.
Reliability Refers to a selection technique’s freedom from systematic errors of
measurement and its consistency under varying conditions.
Remuneration Payment for goods provided or services rendered; compensation.
Repetitive motion injury Any bodily injury sustained as a result of repetitive motions over a long
period, particularly those performed in connection with employment.
Representation A statement which induces a party to undertake an obligation.
Representation election A secret ballot vote to determine if a particular group will represent the
workers in a collective bargaining relationship. It is monitored by the
national labor relations board (nlrb).

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Respondent superior A legal doctrine that holds the employer responsible for acts committed
by employees in the course of their employment.
Restraining order A court order to refrain from particular conduct; an injunction.
Restricted shop A practice initiated by management to keep a union out without violating
labor laws. A restricted shop an attitude rather than a formal
arrangement.
Restructuring A process of reorganizing businesses and/or getting rid of unnecessary
operations.
Retained search When a search firm is granted exclusive rights to fill a particular
position. Company is paid a portion in advance, and presents, in its
opinion, the five highest qualified candidates for the company to choose
from. The search firm takes responsibility for everything up to the final
interview. Usually, it may also involve a satisfaction guarantee for one
year, to fill the position should the selected candidate vacate the
position.
Retaliation An action taken by an employer that has a negative impact on an
employee because the employee has complained about or claimed
wrongdoing against the employer.
Reverse discrimination Prejudice exercised against a person or class for the purpose of
correcting a pattern of discrimination against another person or class.
Right to work A classification of employment determined by law by the state of
employment, which allows any employee to work for the organization
without regards to union membership. 19 states (including texas) have
right to work laws.
Rightsizing Eliminating or scaling back unnecessary or outdated jobs to achieve
more efficient operations.
S
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Salary midpoint The rate of pay half way between the minimum and maximum salaries
for a specified range.
'Same actor' inference The claim that if the person who fires an employee was the same
person who hired that employee, then it logically follows that there is no
basis for a complaint of discrimination against the employer.
Scab Slang term for a worker who replaces a striking employee.
Second quartile In compensation – any wage or salary which falls in the range between
the middle point of the salary range down to the point which is half-way
between the minimum and the middle point. Some new hires with
exceptional experience or high performance expectations may be hired
in this area.
Selection The process by which an organization chooses from a list of applicants
the person or persons who best meet the selection criteria for a position
available, considering current environmental conditions.
Spd (summary plan A document that explains the claims procedure and other benefit
description) information of a health care insurance plan to employees.
Seniority Relative duration of service.
Senior professional in Certification awarded to HR professionals who pass a comprehensive
human resources (sphr) examination and meet the stringent experience and educational
requirements specified by the Society for Human Resource
Management (SHRM) and the Human Resource Certification Institute
(HRCI).
Service letter A letter provided to an employee by a former employer, describing the
nature and duration of the employment and the reason for termination.

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Set-asides A proportion of government contracts that are reserved for businesses

owned by members of disadvantaged groups.
Severance pay Money offered by employers to workers who have been terminated or
laid off.
Sexual harassment Unwelcome sexual advances or conduct on the job, which can ranges
from offensive jokes to pornography to outright sexual assault. Sexual
harassment is prohibited by the federal civil rights act of 1991.
Sit-down strike The occupation of an employer's facilities by striking employees.
Skill variety The degree to which a job requires a variety of different activities in
carrying out the work.
Skills inventory A list of the names, characteristics, skills, and knowledges of
employees. It provides a way to acquire data and make it available
where needed in an efficient manner.
Slander A defamatory statement that is published (i.e., disclosed to another
person) orally.
Small necessities Term coined by several states to refer to certain family obligations of
workers, such as attending to children's school conferences and
pediatrician visits, and/or assisting elderly relatives with doctors visits
and personal care. Several states now mandate that employers give
time off to attend to those matters pursuant to small necessities leave
laws.
Statute of frauds The legal requirement that certain contracts (e.g., for the sale of land,
for services that cannot be performed within a year) be in writing.
Statutes of limitations Laws that establish deadlines for the institution of various kinds of legal
actions.
Strict liability Legal responsibility for injury, without regard to fault.
Strike A work stoppage by employees in connection with a labor dispute.
Subcontractor An individual or company that takes on a portion of a contract originally
assigned to a primary contractor.
Subsidies Government grants given to businesses, which can occur in a number
of ways and for a number of reasons. Generally, the government grants
subsidies when they have a vested interest in the company or
organization or believe it to be beneficial to the public.
T
Return to top
Taft-hartley act See Labor-Management Relations Act of 1947.
Tagout The tagging of a piece of equipment, especially electrical equipment
during repair or maintenance, that prevents the equipment from being
activated accidentally.
Task A coordinated and aggregated series of work elements used to produce
an output.
Task identity The degree to which the job requires completion of a whole an
identifiable piece of work.
Team building A development method which attempts to improve the cooperation
between team members or among various teams.
Telecommuter An employee who works at home and communicates with the employer
by telephone, often including the transfer of computerized data.
Telemarketing Sales via telephone.
Tenure Incumbency in a job; in academic employment especially, an
entitlement to "lifetime" employment that is granted to faculty members
who satisfy certain criteria.
Termination for cause Termination of an employee on grounds that any reasonable person

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would view as justified.

Third quartile In compensation, a salary or wage which falls in the range between the
mid point and the point which is half-way from the mid-point to the
maximum. This range is usually not paid to new hires and is reserved for
career progression and performance awards.
Tort A wrongful act for which a person can be sued.
Total quality Attempt by employee teams to find ways to improve their own
management (tqm) productivity and the quality of their product or service.
Training The systematic process of altering the behavior of employees in a
direction to produce organizational goals.
Transitional workplace A worksite that occupies workers who are recovering from illness or
injury with "light" duties until they regain their ability to resume their
regular jobs.
Type “a” behavior An action-emotion complex that can be observed in a person who is
aggressive, in a struggle against time, competitive, and chronically
impatient.
U
Return to top
Undue hardship A term which refers to unreasonable or excessive expense or
inconvenience that would be necessary on the part of an employer to
accommodate an employee.
Unemployment Established by the Social Security Act of 1935 to provide a subsistence
insurance payment to employees when they are between jobs. Both employer and
employee contribute to a fund from which the subsistence allowance is
drawn.
Union A group of employees who have joined together to achieve present and
future goals that deal with employment conditions.
Union avoidance Either the acts of a company to quickly resolve employee concerns and
ensure an attractive workplace environment in order to not attract an
organizing campaign or the hiring of a third party organization to meet
with employees during the six week period between employees filing the
petition with the NLRB and the election.
Union security A collective bargaining agreement that requires all employees in the
agreement bargaining unit to be union members or to pay union dues.
Union shop A situation in which the employee is required to join a union after being
hired.
Union steward A union representative who works at the job site to solve disputes in
connection with the labor-management labor contract.
V
Return to top
Vest To give an immediate right of present or future ownership.
Vested benefits Benefits that have been accrued and are, therefore, owned by an
employee; not conditional or contingent in any way. Under erisa, all
retirement plans must offer vested benefits.
Vietnam era veterans Federal legislation which requires employers with federal contracts or
readjustment act subcontracts to take affirmative action in hiring Vietnam era veterans.
Voucher A document that bears witness to a payment made.
Vocational rehabilitation Occupational training to facilitate the reassignment of a disabled
worker.
W
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Wage and hour law See Fair Labor Standards Act

Wagner act (national Legislation that essentially gives employees the right to join a labor
labor relations act of organization of their choice. Also created the national labor relations
1935) board to control and administer the legislation.
Waive To forego a legal right.
Waiver A written or oral acknowledgment that a person has given up a legal
right.
Warrant To promise.
Warranty A representation regarding the quality or fitness of particular goods or
services.
Weighted average A numerical value which is calculated by weighting each individual
average by the number of salaries in the set. May also be referred to as
the weighted mean.
Whistle-blower A person who reports illegal or improper conduct, especially improper
conduct on the part of the whistleblower's employer.
Willful Intentional, deliberate.
Worker adjustment and Federal regulation which requires employers with 100 or more
retraining notification employees to provide advance warning of plant closings or significant
act (warn) reductions in force.
Workers' compensation A program that provides fixed payments for wages lost and medical
expenses to employees who are injured on the job. Usually, such
payments can be extended to a worker's spouse and dependents. This
benefits both employees and employers, because incapacitated
employees continue to receive income and employers are protected
from law suits resulting from injured workers.
Wrongful discharge Also referred to as an abusive discharge, a reason for termination of an
employee that is not legitimate. A wrongful discharge is usually in
violation of law (or the employee handbook).
Y
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Yellow-dog contract A promise by an employee or group of employees not to join a labor

union.

401(k) plan An employee savings plan based upon section 401(k) of the Internal
Revenue Code, which allows eligible employees to contribute a
percentage of their salary on a tax-deferred basis into a company-
administered investment plan.

403(b) plan Same as 401(k) except for non-profit organizations.

Acronyms & Abbreviations

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return to top

AA
Affirmative Action
AAA
American Arbitration Association
AAC
affirmative action clause
AAI
ASPA Accreditation Institute
AAOHN
American Association of Occupational Health Nurses
AAP
Affirmative Action Program
AARP
American Association of Retired Persons
ABC
American Benefits Council
ABO
accumulated benefit obligation
ACA
American Compensation Association now known as World at Work
ACCC
Associate Certified Career Coach – certification granted by the Career Coach Institute
AD&D
accidental death and dismemberment
ADA
Americans with Disabilities Act
ADEA
Age Discrimination in Employment Act
ADEC
accumulated deductible employee contributions
ADR
alternative dispute resolution
AFL
CIO
American Federation of Labor and Congress of Industrial Organizations

AFSC
Air Force – Air Force Specialty Classification (Job Title)
AFSCME
American Federation of State, County, and Municipal Employees
AHA
American Hospital Association
AIDS
acquired immune deficiency syndrome
AIHA
American Industrial Hygiene Association
AMA
American Management Association
ANSI
American National Standards Institute
APA

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American Payroll Association, also American Psychological Association

ARC
AIDS
related complex

ASA
American Statistical Association
ASHPA
American Society for Hospital Personnel Administration
ASIS
American Society for Industrial Security
ASSE
American Society of Safety Engineers
ASTD
American Society for Training and Development

return to top

BAT
Bureau of Apprenticeship and Training
BFOQ
bona fide occupational qualification
BLR
Business & Legal Reports, Inc., Old Saybrook, CT 06475 (800
727
5257)
BLS
Bureau of Labor Statistics (Department of Labor)
BPI
Business Periodicals Index

return to top

CBP
Certified Benefits Professional – certification granted by World at Work
CCC
Certified Career Coach – certification granted by Career Coach Institute
CCP
Certified Compensation Planner – certification granted by World at Work
CCR
Commission on Civil Rights
CDC
Centers for Disease Control and Prevention
CEBS

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Certified Employee Benefits Specialist – certification granted by Wharton School and

International Benefits Society
CEO
Chief Executive Officer
CFO
Chief Financial Officer
CFR
Code of Federal Regulations
CIO
chief information officer
CMS
Centers for Medicare and Medicaid Services

COBRA—
Consolidated Omnibus Budget Reconciliation Act of 1985
COLA—cost
of
living adjustment

COO—Chief Operating Officer

CPA—certified public accountant

CPC—chemical protective clothing

CPI—Consumer Price Index

CRA—Civil Rights Act of 1991

CSRA—Civil Service Reform Act of 1978

CTD—cumulative trauma disorder (see also RSI)

CWPS—Council on Wage and Price Stability

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DDB—defined dollar benefit

DEP.—dependent

D&O—directors and officers (liability insurance)

DHHS—Department of Health and Human Services

DHS—Department of Homeland Security

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DOD—Department of Defense

DOE—Department of Education or Department of Energy

DOJ—Department of Justice

DOL—Department of Labor

DOT—Department of Transportation

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EAP—Employee Assistance Program

EAPA—Employee Assistance Professionals Association

EBRI—Employee Benefit Research Institute

EBSA—Employee Benefits Security Administration (DOL)

EEO—Equal Employment Opportunity

EEOC—Equal Employment Opportunity Commission

EMA—Employment Management Association

EMTALA—Emergency Medical Treatment and Active Labor Act

EO—executive order

EOE—equal opportunity employer

EOS—equal opportunity specialist

EPA—Equal Pay Act or Environmental Protection Agency

EPLI—employment practices liability insurance

ERISA—Employee Retirement Income Security Act (1974)

ERTA—Economic Recovery Tax Act of 1981

ESA—Employment Standards Administration (DOL)

ESGR—Employer Support of the Guard and Reserve

ESOA—Employee Stock Ownership Association

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ESOP—employee stock ownership plan

ETA—Employment and Training Administration (DOL)

E&O—Errors and Omissions

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FASB—Financial Accounting Standards Board

FCRA—Fair Credit Reporting Act

FDA—Food and Drug Administration

FEP—fair employment practice

FEPA
fair employment practice agency
FICA—Federal Insurance Contributions Act

FLRA—Federal Labor Relations Authority

FLSA—Fair Labor Standards Act

FMCS—Federal Mediation and Conciliation Service

FMLA—Family and Medical Leave Act

FPCA—Federal Pay Comparability Act of 1970

FSA—flexible spending account

FSB—Federal Supplemental Benefits (Program)

FSIP—Federal Services Impasses Panel

FT—Full
time
FTC—Federal Trade Commission

FTE—full
time equivalent
FTR—full
time regular
FTT—full
time temporary
FUTA—Federal Unemployment Tax Act

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G&R—guards and reserve

GAO—General Accounting Office

GIC—guaranteed investment contract

GSA—General Services Administration

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HIAA—Health Insurance Association of America

HIPAA—Health Insurance Portability and Accountability Act of 1996

HIV—Human Immunodeficiency Virus

HMIS—Hazardous Materials Identification System

HMO—health maintenance organization

HMOA—Health Maintenance Organization Act of 1973

HRCI—Human Resource Certification Institute

HRIS—Human Resources Information System

HSA—Health Savings Account

HUD—Department of Housing and Urban Development

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I
9 IAWP—International Association of Workforce Professionals
IBS—International Benefits Society

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ICC—Interstate Commerce Commission

IFEBP—International Foundation of Employee Benefit Plans

IHF—Industrial Health Foundation

ILR—industrial and labor relations

IME—independent medical examination

INS—Immigration and Naturalization Service now part of Department of Homeland

Security

IPMA
HR—International Public Management Association for Human Resources
IR—Industrial relations, investor relations

IRA—Individual retirement account

IRCA—Immigration Reform and Control Act of 1986

IRRA—Industrial Relations Research Association

IRS—Internal Revenue Service

ISO—incentive stock option

ISPI
International Society for Performance Improvement
ISR—Institute for Social Research

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JAN—Job Accommodation Network

JIMS—job information matrix system

JTPA—Job Training Partnership Act

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LMRA—Labor Management Relations Act

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LMRDA—Labor
Management Reporting and Disclosure Act

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MCCC—Master Certified Career Coach – certification granted by Career Coach Institute

M/F—male or female

MFBE—minority/female business enterprise

MHPA—Mental Health Parity Act

MIS—management information systems

MOS
army – military occupational specialty – job title
MRO—Medical Review Officer

MSDS—material safety data sheet (OSHA)

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NCPE—National Committee on Pay Equity

NIOSH—National Institute for Occupational Safety and Health

NLRA—National Labor Relations Act

NLRB—National Labor Relations Board

NMB—National Mediation Board

NQSO—nonqualified stock option

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O*NET—Occupational Information Network

OASDHI—Old Age, Survivors, and Disability Health Insurance (Act)

OBRA—Omnibus Budget Reconciliation Act (1987)

OFCCP—Office of Federal Contract Compliance Programs (DOL)

OLMS—Office of Labor
Management Standards (DOL)
OMB—Office of Management and Budget

OPM—Office of Personnel Management

OSH—Occupational Safety and Health (Act)

OSHA—Occupational Safety and Health Administration

OSHRC—Occupational Safety and Health Review Commission

OWBPA—Older Workers Benefit Protection Act

OWCP—Office of Workers’ Compensation Programs (DOL)

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PBGC—Pension Benefit Guaranty Corporation

PCCC—Professional Certified Career Coach – certification granted by the Career Coach

Institute

PCS— Position Control System also Permanent Change of Station

PDA—Pregnancy Discrimination Act

PHI—protected health information

PHR—professional in human resources

PPE—personal protective equipment

PPI—Producer Price Index

PPO—preferred provider organization

PRO—peer review organization

PT—part

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time
PTR
part
time regular

PTT
part
time temporary

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QA—quality assurance

QC—quality control

QDRO—qualified domestic relations order

QJSA—qualified joint and survivor annuity

QPSA—qualified pre
retirement survivor annuity

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R&D—research and development

REA—Retirement Equity Act (1984)

Rev.—Revised

RIF—reduction in force

RSI—repetitive stress injury

RTK—right to know

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SAR—Summary Annual Report (benefits)

SHRM—Society for Human Resources Management

SIMPLE—Savings Incentive Match for Employees of Small Employers

SOC—standard occupational classification

SPD—summary plan description (benefits)

SPHR—senior professional in human resources

SPRW—Senior Professional Resume Writer – certification granted by Association of

Professional Resume Writers

SSA—Social Security Act or Social Security Administration

SSAN—Social Security Account Number

SSD—Social Security Disability (Insurance)

SSI—Social Security Income or Supplemental Security Income

Stat.—statute

SUB—supplemental unemployment compensation benefit trust

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TAD
military – temporary duty
TDY
military – temporary duty
TRA
Tax Reform Act (1986)
TRASOP
Tax Reduction Act Stock Ownership Plan
TRO
temporary restraining order

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UC

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unemployment compensation
ULP
unfair labor practice
URL
uniform resource locator
USC
U.S. Code
USCIS
U.S. Citizenship and Immigration Services, an agency of the Department of Homeland
Security. Formerly the Bureau of Citizenship and Immigration Services (BCIS) and—
before that—the Immigration and Naturalization Service (INS).
USDOL
U.S. Department of Labor
USERRA
Uniformed Service Employment and Reemployment Rights Act

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VA
Department of Veterans Affairs
VDT
video or visual display terminal
VEBA
Voluntary Employees’ Beneficiary Association
VETS
Veterans’ Employment and Training Service (DOL)
VEVRAA
Vietnam Era Veterans Readjustment Assistance Act of 1974

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WARN
Worker Adjustment and Retraining Notification (Act) of 1988
WAW
World at Work
WC
workers’ compensation
WFPMA
World Federation of Personnel Management Associations
WHD
Wage and Hour Division (DOL)
WIA
Workforce Investment Act
WPM

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words per minute

W&S
wage and salary

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