Chapter 4-6

Human Resource Management

All activities involved in acquiring, maintaining, and developing an organization’s human resources.

Acquisition Phase of HRM

Involves planning, job analysis, orientations, recruiting, and hiring new personnel.

Replacement Chart

A list of key employees and their possible replacements within a company.

Skills Inventory

A computerized database containing information on the skills and experience of all current employees.

Job Analysis

A systematic approach that identifies job duties and requirements, leading to job descriptions and specifications.

Job Description

A list of the objectives and responsibilities for a particular job.

Job Specification

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

Cultural Diversity in HR

Differences among workforce individuals in ethnicity, gender, religion, age, and abilities.

Recruiting

The process of attracting qualified job applicants.

Compensation

The payment employees receive in return for their labor.

Fringe Benefits

Forms of indirect compensation including pensions, health insurance, and vacation.

On the Job Training

Trainee learns by doing the work under the supervision of an experienced employee or peer.

Peak Loading Price

A pricing strategy where high prices are charged for goods during peak demand periods.

Managerial Accounting

Provides information for managers within an organization to assist in decision-making.

Income Statements

Summarizes how much a company earned over a period, including revenue and expenses.

Liquidity

The ease at which an asset can be converted to cash.

Profitability Ratios

Financial ratios that measure how effectively a company uses its resources to generate profits.

Debt to Equity Ratio

Measures leverage by dividing total liabilities by owners' equity, indicating the level of debt compared to equity.