Human Resources Management – Key Vocabulary

Vocabulary flashcards covering essential HR concepts such as recruitment components, HR strategies, diagnostic tools, and labor-market dynamics.

Internal HR Influences

Factors within a business (culture, leadership, budget, workforce skills, corporate objectives) that shape HR planning and decisions.

External HR Influences

Outside factors (technology, laws, social trends, demographics, economic cycles) that affect HRM choices and require adaptation.

Recruitment

The overall process of identifying, attracting, and selecting the right candidate for a job.

Job Analysis

The examination of a role to determine its tasks, duties, and required competencies.

Job Description

A document outlining the duties, responsibilities, and scope of a specific position.

Person Specification

A profile detailing the skills, qualifications, and personal attributes required for a job.

Internal Recruitment

Filling vacancies by promoting or transferring existing employees within the organization.

External Recruitment

Hiring candidates from outside the organization to fill vacancies.

Employee Turnover

The percentage of employees who leave an organization within a given period.

Hard HRM

An HR strategy focused on cost control, output, and tight supervision—often using short-term contracts and close monitoring.

Soft HRM

An HR strategy emphasizing employee development, well-being, and empowerment to foster loyalty and motivation.

Fishbone Diagram

A visual tool (cause-and-effect or Ishikawa diagram) used to identify root causes of a problem under categories such as People, Processes, and Equipment.

Decision Tree

A quantitative diagram that maps decisions, chance events, probabilities, and expected values to aid in choosing between alternatives.

Multinational Company (MNC)

A business that operates in two or more countries with centralized headquarters, facing diverse cultural and legal HR challenges.

Economies of Scale

Cost advantages realized by producing on a larger scale, often requiring standardized HR practices to manage more staff efficiently.

Tight Labor Market

A situation in which demand for workers exceeds supply, making recruitment difficult and pushing wages and benefits upward.

HR Strategies

Long-term plans (e.g., Hard vs. Soft HRM blends) designed to align a workforce with business goals.

Employee Value Proposition (EVP)

The unique set of benefits and values a company offers to attract and retain employees, especially important in a tight labor market.

Internal HR Influences

Factors within a business (culture, leadership, budget, workforce skills, corporate objectives) that shape HR planning and decisions.

External HR Influences

Outside factors (technology, laws, social trends, demographics, economic cycles) that affect HRM choices and require adaptation.

Recruitment

The overall process of identifying, attracting, and selecting the right candidate for a job.

Job Analysis

The examination of a role to determine its tasks, duties, and required competencies.

Job Description

A document outlining the duties, responsibilities, and scope of a specific position.

Person Specification

A profile detailing the skills, qualifications, and personal attributes required for a job.

Internal Recruitment

Filling vacancies by promoting or transferring existing employees within the organization.

External Recruitment

Hiring candidates from outside the organization to fill vacancies.

Employee Turnover

The percentage of employees who leave an organization within a given period.

Hard HRM

An HR strategy focused on cost control, output, and tight supervision—often using short-term contracts and close monitoring.

Soft HRM

An HR strategy emphasizing employee development, well-being, and empowerment to foster loyalty and motivation.

Fishbone Diagram

A visual tool (cause-and-effect or Ishikawa diagram) used to identify root causes of a problem under categories such as People, Processes, and Equipment.

Decision Tree

A quantitative diagram that maps decisions, chance events, probabilities, and expected values to aid in choosing between alternatives.

Multinational Company (MNC)

A business that operates in two or more countries with centralized headquarters, facing diverse cultural and legal HR challenges.

Economies of Scale

Cost advantages realized by producing on a larger scale, often requiring standardized HR practices to manage more staff efficiently.

Tight Labor Market

A situation in which demand for workers exceeds supply, making recruitment difficult and pushing wages and benefits upward.

HR Strategies

Long-term plans (e.g., Hard vs. Soft HRM blends) designed to align a workforce with business goals.

Employee Value Proposition (EVP)

The unique set of benefits and values a company offers to attract and retain employees, especially important in a tight labor market.

Formula for Expected Value in a Decision Tree

The standard calculation for expected value at a chance node within a decision tree is: \text{Expected Value} = \text{Probability of Demand} \times \text{Profit Outcome}
This is calculated for each possible outcome and then summed to find the total expected value for that decision path.