HRM Vocab

Labour turnover

The rate at which employees leave a company, calculated by: (Number of employees leaving in a set time period / average number of employees in that time period) x 100

Formative appraisal

a planned and ongoing process in which appraisal evidence is used to inform employees about what to do to improve their work practices

Summative appraisal

Measures an employee's performance according to a set of standards. Typically done yearly and with senior managers.

360-degree feedback

A performance evaluation system that uses feedback by supervisors, coworkers, subordinates, customers, and so on.

Self-appraisal

Self evaluation process involved in determining the employee's own performance.

Induction

Welcoming new employees and give them information about rules, regulations, and provide them training.

On the job training

Training during normal work hours and onsite.

Off the job training

Training done offsite by an outside party.

Salary

A fixed amount of money paid to an employee for each fixed period.

Wages (time and piece rates)

Monetary compensation done either on a time basis (per hour) or on a piece basis (how many goods sold/produced).

Commission

An amount paid to an employee based on a percentage of the employee's sales.

Performance-related pay (PRP)

Type of financial payment system used to pay people a bonus for reaching or exceeding a set target.

Profit-related pay

A bonus for employees based on the profits of the business.

Employee share ownership schemes

A payment programme that rewards employees by giving them shares in the company.

Fringe payments

Any kind of compensation other than their salary, such as life insurance coverage or health insurance coverage.

Job enrichment

Increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work.

Job rotation

Moving employees among several different jobs.

Job enlargement

Broadening the types of tasks performed in a job.

Empowerment

The expansion of employees' decision-making responsibilities by continuous development.