business test #4

Affirmative action programs

Legally mandated plans that try to increase job opportunities for minority groups by analyzing the current pool of workers,
identifying areas where women and minorities are underrepresented, and establishing specific hiring and promotion goals,
with target dates, for addressing the discrepancy

Arbitration

Settlement of a labor/management dispute by a third party whose solution is legally binding and enforceable

Benefits

Nonfinancial forms of compensation provided to employees, such as pension plans, health insurance, paid vacation and
holidays, and the like

Bonuses

Monetary rewards offered by companies for exceptional performance as incentives to further increase productivity

Boycott

An attempt to keep people from purchasing the products of a company

Collective bargaining

The negotiation process through which management and unions reach an agreement about compensation, working hours,
and working conditions for the bargaining unit

Commission

An incentive system that pays a fixed amount or a percentage of the employee’s sales

Conciliation

A method of outside resolution of labor and management differences in which a third party is brought in to keep the two sides
talking

Development

Training that augments the skills and knowledge of managers and professionals

Diversity

The participation of different ages, genders, races, ethnicities, nationalities, and abilities in the workplace

Human resources management (HRM)

All the activities involved in determining an organization’s human resources needs, as well as acquiring, training, and
compensating people to fill those need

Job analysis

The determination, through observation and study, of pertinent information about a job—including specific tasks and
necessary abilities, knowledge, and skills

Job description

A formal, written explanation of a specific job, usually including job title, tasks, relationships with other jobs, physical and
mental skills required, duties, responsibilities, and working conditions

Job specification

A description of the qualifications necessary for a specific job, in terms of education, experience, and personal and physical
characteristics

Labor contract

The formal, written document that spells out the relationship between the union and management for a specified period of
time—usually two or three years

Labor unions

Employee organizations formed to deal with employers for achieving better pay, hours, and working conditions

Lockout

Management’s version of a strike, wherein a work site is closed so that employees cannot go to work

Mediation

A method of outside resolution of labor and management differences in which the third party’s role is to suggest or propose a
solution to the problem

Mentoring

Supporting, training, and guiding an employee in his or her professional development

Orientation

Familiarizing newly hired employees with fellow workers, company procedures, and the physical properties of the company

Picketing

A public protest against management practices that involves union members marching and carrying anti-management signs at
the employer’s plant or work site

Profit sharing

A form of compensation whereby a percentage of company profits is distributed to employees whose work helped to
generate them

Promotion

An advancement to a higher-level job with increased authority, responsibility, and pay

Recruiting

Forming a pool of qualified applicants from which management can select employees

Salary

A financial reward calculated on a weekly, monthly, or annual basis

Selection

The process of collecting information about applicants and using that information to make hiring decisions

Separations

Employment changes involving resignation, retirement, termination, or layoff

Strikebreakers

People hired by management to replace striking employees; called “scabs” by striking union members

Strikes

Employee walkouts; one of the most effective weapons of labor unions

Title VII of the Civil Rights Act

Prohibits discrimination in employment and created the Equal Employment Opportunity Commission

Training

Teaching employees to do specific hob tasks through either classroom development or on-the-job experience

Transfer

A move to another job within a company at essentially the same level and wage

Turnover

Occurs when employees quit or are fired and must be replaced by new employees

Wage/salary survey

A study that tells a company how much compensation comparable firms are paying for specific jobs that the firms have in common

Wages

Financial rewards based on the number of hours the employee works or the level of output achieved

Human Relations

The study of the behavior of individuals and groups in organizational settings

Motivation

An inner drive that directs a person’s behavior toward goals

Morale

An employee’s attitude toward his or her job, employer, and colleagues

Intrinsic rewards

The personal satisfaction and enjoyment felt after attaining a goal

Extrinsic rewards

Benefits and/or recognition received from someone else

Classical theory of motivation

Theory suggesting that money is the sole motivator for workers

Maslow’s Hierarchy

A theory that arranges the five basic needs of people - physiological, security, social, esteem, and self-actualization - into the order in which people strive to satisfy them

Physiological needs

The most basic human needs to be satisfied - water, food, shelter and clothing

Security needs

The need to protect oneself from physical and economic harm

Social needs

The needs for love, companionship, and friendship - the desire for acceptance by others

Esteem needs

The need for respect - both self-respect and respect from others

Self-actualization needs

The need to be the best one can be; at the top of Maslow’s hierarchy

Hygiene factors

Aspects of Herzberg’s theory of motivation that focus on the work setting and not the content of the work; these aspects include adequate wages, comfortable and safe working conditions, fair company policies, and job security

Motivational factors

Aspects of Herzberg’s theory of motivation that focus on the content of the work itself; these aspects include achievement, recognition, involvement, responsibility, and advancement

Theory X

McGregor’s traditional view of management whereby it is assumed that workers generally dislike work and must be forced to do their jobs

Theory Y

McGregor’s humanistic view of management whereby it is assumed that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs

Theory Z

A management philosophy that stresses employee participation in all aspects of company decision making

Equity theory

An assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange

Expectancy theory

The assumption that motivation depends not only on how much a person wants something but also on how likely he or she is to get it

Goal-setting theory

Refers to the impact that setting goals has on performance

Behavior modification

Changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself

Reinforcement theory

States that behavior can be strengthened or weakened through the use of rewards and punishment

Job Rotation

Movement of employees from one job to another in an effort to relieve the boredom often associated with job specialization

Job Enlargement

The addition of more tasks to a job instead of treating each task as separate

Job Enrichment

The incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement into a job

Flextime

A program that allows employees to choose their starting and ending times, provided that they are at work for a specified core period

Compressed workweek

A four-day (or shorter) period in which an employee works 40 hours

Job Sharing

Performance on one full-time job by two people on part-time hours