SHRM Certification Prep: People HR Strategy and Total Rewards

Comprehensive vocabulary flashcards covering HR Strategy, Talent Acquisition, Employee Engagement, Learning and Development, and Total Rewards based on the SHRM Certification Prep System.

Balanced scorecard

Performance management tool that depicts an organization’s overall performance, as measured against goals, lagging indicators, and leading indicators.

Benchmarking

Process by which an organization identifies performance gaps and sets goals for performance improvement by comparing its data, performance levels, and/or processes against those of other organizations.

Environmental scanning

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

Key performance indicators (KPIs)

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

Lagging indicator

Type of metric describing an activity or change in performance that has already occurred.

Leading indicator

Type of metric describing an activity that can change future performance and predict success in the achievement of strategic goals.

Mission statement

Concise outline of an organization’s strategy, specifying the activities the organization intends to pursue and the course its management has charted for the future.

Organizational values

Beliefs and principles defined by an organization to direct and govern its employees’ behavior.

PESTLE analysis

Scanning process that searches for environmental forces in political, economic, social, technological, legal, and environmental categories.

SWOT analysis

Method for assessment of an organization’s strategic capabilities through use of the environmental scanning process, by which internal and external factors affecting achievement of organizational goals are identified and considered.

Strategic fit

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

Strategic management

System of actions that leaders take to drive an organization toward its goals and objectives.

Strategic planning

Process of setting goals and designing a path toward a competitive position.

Strategy

Plan of action for accomplishing an organization’s overall and long-range goals.

Systems thinking

Process for understanding how seemingly independent units within a larger entity interact with and influence one another.

Value drivers

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

Vision statement

Description of what an organization hopes to attain and accomplish in the future, which guides it toward that defined direction.

Applicant tracking system (ATS)

Software application that automates organizations’ management of the recruiting process (such as accepting application materials, screening applicants, etc.).

Competencies

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

Employee value proposition (EVP)

Employees’ perceived value of the total rewards and tangible and intangible benefits they receive from the organization as part of employment, which drives unique and compelling organizational strategies for talent acquisition, retention, and engagement.

Employment branding

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

Essential functions

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

Head count

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

Job analysis

Process of systematically studying a job in order to identify the activities/tasks and responsibilities it includes, the personal qualifications necessary to perform it, and the conditions under which it is performed.

Job description

Document that describes a job and its essential functions and requirements (including tasks, knowledge, skills, abilities, responsibilities, and reporting structure).

Job specifications

Written statements of the minimum qualifications for the job incumbent.

Onboarding

Process of assimilating new employees into an organization through orientation programs and their experiences in their first months of employment.

Orientation

Process by which new employees become familiar with the organization and with their specific department, coworkers, and job.

Reasonable accommodation

Modifying a job application process, a work environment, or the circumstances under which a job is performed to enable a qualified individual with a disability to be considered for the job and perform its essential functions.

Recruitment

Process by which an organization seeks out candidates and encourages them to apply for job openings.

Selection

Process of evaluating the most suitable candidates for a position.

Selection interviews

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

Selection screening

Analyzing candidates’ application forms, curricula vitae, and résumés to locate the most-qualified candidates for an open job.

Sourcing

Process by which an organization generates a pool of qualified job applicants.

Staffing

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

Employee engagement

Employees’ emotional commitment to an organization, demonstrated by their willingness to put in discretionary effort to promote the organization’s effective functioning.

Employee life cycle (ELC)

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

Employee surveys

Instruments that collect and assess information on employee engagement, satisfaction, and perceptions surrounding the work environment.

Performance appraisal

Process of measuring and evaluating an employee’s adherence to performance standards and providing feedback to the employee.

Performance management

Tools, activities, and processes that an organization uses to manage, maintain, and/or improve the job performance of employees.

Performance standards

Behaviors and results as defined by an organization to communicate the expectations of management.

Realistic job preview (RJP)

Tool used to provide a job applicant with honest, complete information about a job and the work environment.

Retention

Ability of an organization to keep its employees.

Stay interviews

Structured conversations with employees for the purpose of determining which aspects of a job encourage employee retention or may be improved to do so.

Well-being

Physical, psychological, and social aspects of employee health.

ADDIE model

Instructional systems design framework consisting of five steps that guide the design and development of learning programs.

Action mapping

Instructional design model based on concept that training should be tightly focused on specific performance measures that the organization has determined are important.

Apprenticeship

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

Assessment centers

Process by which job candidates or employees are evaluated to determine suitability and/or readiness for employment, training, promotion or an assignment.

Auditory learners

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

Blended learning

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

Career development

Progression through a series of employment stages characterized by relatively unique issues, themes, and tasks.

Career management

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

Career planning

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

Coaching

Focused, interactive communication and guidance intended to develop and enhance on-the-job performance, knowledge, or behavior.

Developmental activities

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

Distance learning

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

Dual career ladders

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

E-learning

Electronic media delivery of educational and training materials, processes, and programs.

Individual development plan (IDP)

Document that guides employees toward their goals for professional development and growth.

Job enlargement

Process of broadening a job’s scope by adding different tasks to the job.

Job enrichment

Process of increasing a job’s depth by adding responsibilities to the job.

Job rotation

Movement between different jobs.

Kinesthetic learners

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

Leader development

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

Leadership

Ability to influence, guide, inspire, or motivate a group or person to achieve their goals.

Learning management system (LMS)

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

Learning organization

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

Mentoring

Relationship in which one person helps guide another’s development.

On-the-job training (OJT)

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

Organizational learning

Acquisition and/or transfer of knowledge within an organization through activities or processes that may occur at several organizational levels; ability of an organization to learn from its mistakes and adjust its strategy accordingly.

Pilot programs

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

Situation judgment tests (SJTs)

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

Successive approximation model (SAM)

Instructional design model that works to gain feedback and build models early in the process; generally has three phases: preparation, iterative design, and iterative development.

Training

Process by which employees are provided with the knowledge, skills and abilities (KSAs) specific to a task or job.

Visual learners

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

Webconferencing

Using the Internet to conduct meetings and give presentations to an audience who has joined the meeting remotely.

Webinar

Form of webconferencing where a presenter facilitates communication of material or information to an audience in real time.

Benefits

Mandatory or voluntary payments or services provided to employees, typically covering retirement, health care, sick pay/disability, life insurance, and paid time off.

Broadbanding

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

Compa-ratio

Ratio calculated as: $\frac{\text{Pay rate}}{\text{Midpoint of the pay range}}$

Compensation

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

Compensation philosophy

Short but broad statement documenting an organization’s guiding principles and core values about employee compensation.

Cost-of-living adjustment (COLA)

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

Domestic partners

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

External equity

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

Flat-rate pay

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

General pay increase

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

Green-circle rates

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

Incentive pay

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

Internal equity

Extent to which employees perceive that monetary and other rewards are distributed equitably, based on effort, skill and/or relevant outcomes.

Job classification

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

Job evaluation

Process of determining a job’s value and price for the purpose of attracting and retaining employees by comparing the job against other jobs within the organization or against similar jobs in competing organizations.

Job ranking

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

Job-content-based job evaluation

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

Lump-sum increase (LSI)

One-time payment made to an employee.

Market-based job evaluation

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

Merit pay

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

Paired-comparison method

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

Pay compression

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