management Chapter 9 Key terms

360-degree feedback appraisal

A performance appraisal in which employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients

adverse impact

Effect an organization has when it uses an employment practice or procedure that results in unfavorable outcomes to a protected class (such as Hispanics) over another group of people (such as non-Hispanic whites)

affirmative action

The focus on achieving equality of opportunity

arbitration

The process in which a neutral third party, an arbitrator, listens to both parties in a dispute and makes a decision that the parties have agreed will be binding on them

assessment centers

Company department where management candidates participate in activities for a few days while being assessed by evaluators

base pay

Consists of the basic wage or salary paid employees in exchange for doing their jobs

behavioral-description interviews

Type of structured interview in which the interviewer explores what applicants have done in the past

behaviorally anchored rating scale (BARS)

Employee gradations in performance rated according to scales of specific behaviors

benefits (or fringe benefits)

Additional nonmonetary forms of compensation

boomerangs

Former employees who return to the organization

bullying

Repeated mistreatment of one or more persons by one or more perpetrators. It’s abusive physical, psychological, verbal, or nonverbal behavior that is threatening, humiliating, or intimidating

collective bargaining

Negotiations between management and employees regarding disputes over compensation, benefits, working conditions, and job security

compensation

Payment comprising three parts: wages or salaries, incentives, and benefits

cost of living adjustment (COLA) clause

Clause in a union contract that ties future wage increases to increases in the cost of living

defensiveness

Occurs when people perceive they are being attacked or threatened

disparate treatment

Results when employees from protected groups (such as disabled individuals) are intentionally treated differently

employee referrals

Tap into existing employees’ social networks to fill open positions with outside applicants

employment at will

Governing principle of employment in the great majority of states, that anyone can be dismissed at any time for any reason at all—or for no reason

employment tests

Standardized devices organizations use to measure specific skills, abilities, traits, and other tendencies

Equal Employment Opportunity Commission (EEOC)

U.S. panel whose job it is to enforce anti-discrimination and other employment related laws

exit interview

A formal conversation between a manager and a departing employee to find out why he or she is leaving and to learn about potential problems in the organization

external recruiting

Attracting job applicants from outside the organization

Fair Labor Standards Act of 1938 (FLSA)

Legislation passed in 1938 that established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage

forced ranking performance review systems

Performance review systems whereby all employees within a business unit are ranked against one another, and grades are distributed along some sort of bell curve, like students being graded in a college course

givebacks

Negotiation tactic in which the union agrees to give up previous wage or benefit gains in return for something else

grievance

Complaint by an employee that management has violated the terms of the labor–management agreement

high-performance work system (HPWS)

Approach to strategic HRM deploys bundles of internally consistent HR practices in order to improve employee ability, motivation, and opportunities across the entire organization

human capital

Economic or productive potential of employee knowledge, experience, and actions

human resource management (HRM)

The activities managers perform to plan for, attract, develop, and retain a workforce

internal recruiting

Hiring from the inside, or making people already employed by the organization aware of job openings

labor unions

Organizations of employees formed to protect and advance their members’ interests by bargaining with management over job-related issues

legal defensibility

The extent to which the selection device measures job-related criteria in a way that is free from bias

mediation

The process in which a neutral third party, a mediator, listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution

National Labor Relations Board (NLRB)

Legislated in 1935, U.S. commission that enforces procedures whereby employees may vote to have a union and for collective bargaining

non-disparagement agreement

Is a contract between two parties that prohibits one party from criticizing the other; it is often used in severance agreements to prohibit former employees from criticizing their former employers

objective appraisals

Also called results appraisals; performance evaluations that are based on facts and that are often numerical

onboarding

Programs that help employees to integrate and transition to new jobs by making them familiar with corporate policies, procedures, culture, and politics by clarifying work-role expectations and responsibilities

performance appraisal

A management process that consists of (1) assessing an employee’s performance and (2) providing him or her with feedback; also called a performance review

performance improvement plans (PIPs)

Formal policies of progressive discipline that outline employee performance problems, routes to and timelines for improvement, and consequences for not meeting plan objectives

performance management

A set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations

person-job (P-J) fit

The extent to which a worker’s competencies and needs match with a specific job

psychological capital

Positive state of psychological development that is characterized by high levels of hope, resiliency, optimism, and self-efficacy

recruiting

The process of locating and attracting qualified applicants for jobs open in the organization

reliability

Degree to which a test measures the same thing consistently, so that an individual’s score remains about the same over time, assuming the characteristics being measured also remain the same

right-to-work laws

Statutes that prohibit employees from being required to join a union as a condition of employment

selection

The screening of job applicants to hire the best candidate

self-compassion

Tendency to be understanding, kind, and warm toward yourself in the process of pain or failure, instead of being self-critical or over-identifying with negative emotions

sexual harassment

Unwanted sexual attention that creates an adverse work environment

situational interviews

A structured interview in which the interviewer focuses on hypothetical situations

social capital

Economic or productive potential of strong, trusting, and cooperative relationships

Social Security Act of 1935

Established the U.S. retirement system

strategic human resource management

The process of designing and implementing systems of policies and practices that align an organization’s human capital with its strategic objectives

structured interview

Interviews in which the interviewer asks each applicant the same questions and then compares the responses to a standardized set of answers

subjective appraisals

Performance evaluations based on a manager’s perceptions of an employee’s traits or behaviors

talent management

Approach to strategic HRM that matches high-potential employees with an organization’s most strategically valuable positions

talent marketplaces

Digital platforms that use AI to match existing employees with job openings, training opportunities, and mentoring relationships

transfer

Movement of an employee to a different job with similar responsibility

two-tier wage contracts

Contracts in which new employees are paid less or receive lesser benefits than veteran employees have

union security clause

Part of a labor–management agreement that states that employees who receive union benefits must join the union, or at least pay dues to it

Unstructured interviews

Interviews in which the interviewer asks probing questions to find out what the applicant is like

validity

Extent to which a test measures what it purports to measure and extent to which it is free of bias

workplace discrimination

Type of discrimination that occurs when people are hired or promoted—or denied hiring or promotion—for reasons not relevant to the job