Principles of Business Ch 9 Vocabulary

Chapter 9 vocabulary list - Terms/Definitions

Human Resources Management (HRM)

All the activities involved in acquiring, maintaining, and developing an organization's human resources

Human Resources Planning

Determining the firm’s future human resources needs

Replacement Chart

A list of key personnel and their possible replacements within the firm

Skills Inventory

A computerized data bank containing information on the skills and experience of all present employees

Cultural (or workplace) Diversity

Differences among people in a workforce owing to race, ethnicity, and gender

Job analysis

A systematic procedure for studying jobs to determine their various elements and requirements

Job Description

A list of the **elements** that make up a particular job

Job Specification

A list of the **qualifications** required to perform a particular job

Recruiting

The process of attracting qualified job applicants

External Recruiting

Attracting job applicants from outside an organization

Internal Recruiting

Considering present employees as applicants for available positions

Selection

The process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant

Orientation

The process of acquainting new employees with an organization

Compensation

The payment employees receive in return for their labor

Compensation System

The policies and strategies that determine employee compensation

Wage Survey

A collection of data on prevailing wage rates within an industry or a geographic area

Job Evaluation

The process of determining the relative worth of the various jobs within the firm

Comparable Worth

A process that seeks equal compensation for jobs requiring about the same level of education, training, and skills

Hourly Wage

A specific amount of money paid for each hour of work

Salary

A specific amount of money paid for an employee’s work during a set calendar period, regardless of the actual number of hours worked

Commission

A payment that is a percentage of sales revenue

Incentive Payment

A payment in addition to wages, salary, or commissions

Lump-Sum Salary Increase

An entire pay raise taken in one lump sum

Profit Sharing

The distribution of a percentage of a firm’s profit among its employees

Employee Benefit

A reward in addition to regular compensation that is provided indirectly to employees

Flexible Benefit Plan

Flexible benefit plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefit he or she has selected to meet individual needs

Employee Training

The process of teaching operations and technical employees how to do their present jobs more effectively and efficiently

Management Development

The process of preparing managers and other professionals to assume increased responsibility in both present and future positions

Performance Appraisal

The evaluation of employees’ current and potential levels of performance to allow managers to make objective human resources decisions