Chapter 9 Principles of Management

Human Resource Management (HRM)

the process of planning for, attracting, developing, and retaining an effective workforce. 

360 Degree assessment/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 white ones).

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 center

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

base pay

consits of the basic wage, or salary paid employees in exchange for doing their jobs. 

behavioral-description interview

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

Behaviorally anchored rating scales (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, or 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 threathened .

Disparate Treatment

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

employee referalls 

Tap into existing employees’ social networks to fill 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 (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 on 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 systems (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 for a workforce. 

internal recruiting

hiring from the inside, or making people already employed by the organizations 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. 

Meditation 

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 employees.  

objective appraisals

Also called results appraisal; 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 appraisals

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 workers 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.

Right-to-work laws

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

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 over time stay the same. 

selection process

the screening of a 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 harassement 

unwanted sexual attention that creates an adverse work environment. 

Situational interviews

A structured interview in which the interviewer focuses on hypothetical solutions. 

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 interviews

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 behavior. 

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