Management Quiz Two

Human Resource Management (HRM) / Human Resources

• Definition: The department or function within an organization responsible for attracting, supporting, developing, and retaining talent, as well as driving the company's employee strategy.

• Example: A company's HR team handles hiring new software engineers, runs annual performance reviews, and manages employee benefits.

SHRM (Society for Human Resource Management)

• Definition: An essential professional resource and membership association that provides tools, education, and advocacy for HR professionals.

• Example: An HR manager visits shrm.org to look up compliance guidelines and best practices for creating a new workplace policy.

Hiring & Candidate Fit

• Term: Person-Job Fit

• Definition: Evaluating whether a candidate has the necessary Knowledge, Skills, and Abilities (KSAs) required to successfully perform a specific job.

• Example: Hiring an accountant who holds a CPA license and has three years of tax preparation experience.

Hiring & Candidate Fit

• Person-Manager / Group Fit

• Definition: Assessing whether a candidate's working style can successfully synchronize with their direct manager and immediate team members.

• Example: During an interview, the engineering team evaluates whether a candidate collaborates well in fast-paced Agile sprint teams and communicates smoothly with the team lead.

Hiring & Candidate Fit

• Person-Organization Fit

• Definition: Determining whether a candidate's personal values, beliefs, and goals align with the core mission and culture of the company.

• Example: A candidate who deeply values environmental sustainability is hired by an outdoor apparel company whose core mission is protecting nature.

Hiring & Candidate Fit

• Term: Standardized vs. Unstandardized Interviews

• Definition: Standardized interviews use a fixed set of structured questions asked to every candidate in the same way; unstandardized interviews are unstructured, flowing more like a conversational dialogue where questions vary.

• Example: Asking every applicant the exact same behavioral question ("Tell me about a time you solved a conflict") is standardized; casually chatting about a candidate's resume hobbies is unstandardized.

Performance Appraisals & Feedback

• Term: Performance Appraisal

• Definition: A regular evaluation (often annual) where a manager and employee review past performance, discuss specific tasks, set short- and long-term goals, and address areas for professional growth.

• Example: A December meeting where a graphic designer receives a salary increase and sets goals to learn motion design in the coming year.

Performance Appraisals & Feedback

Term: 360° Feedback

• Definition: A performance evaluation method that collects multi-source quantitative and qualitative feedback about an employee from their supervisor, peers, direct reports, and sometimes customers.

• Example: An operations manager receives feedback on their leadership style not just from their boss, but also from three peers, two subordinates, and internal clients.

Performance Appraisals & Feedback

Term: Performance Improvement Plan (PIP)

• Definition: A structured, formal document and coaching process used to address and correct an employee's ongoing performance or behavioral deficiencies.

• Example: An employee who consistently misses sales quotas is placed on a 60-day PIP with weekly check-ins and clear targets to improve their metrics.

Employee Retention & Compensation

• Term: Worker Retention

• Definition: The strategies and practices an organization uses to keep valued employees engaged and prevent them from leaving the company.

• Example: Offering competitive health insurance, flexible working hours, and career training opportunities so employees choose to stay long-term.

Employee Retention & Compensation

• Term: Employee Benefits

• Definition: Non-salary financial and supportive perks provided to workers, typically adding substantial value (e.g., 35% or more) to their total compensation package.

• Example: Comprehensive medical/dental insurance, a 401(k) retirement plan match, and individual or team performance bonuses.

Employee Retention & Compensation

• Term: 401(k) Plan

• Definition: A tax-advantaged employer-sponsored retirement savings account that allows workers to save a portion of their paycheck, often with an employer match.

• Example: An employee contributes 5% of their salary to their 401(k), and their company automatically matches that 5%, building long-term wealth through compound interest.

Employee Retention & Compensation

• Term: Exit Interview

• Definition: A final meeting conducted with an employee who is leaving the company to understand why they are departing, gather constructive feedback, and learn how to improve workplace culture.

• Example: HR asks a departing software developer about their reasons for leaving, revealing that they found better professional growth opportunities elsewhere.